Spirits - CIS

The Spirits market in CIS has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, and local special circumstances. Customer preferences in the CIS region have been shifting towards premium and high-quality spirits, as consumers become more discerning and willing to spend on higher-priced products. This can be attributed to increasing disposable incomes and a growing middle class in many CIS countries. Consumers are also becoming more interested in trying new and unique spirits, leading to a rise in demand for craft and artisanal products. Additionally, there is a growing trend towards healthier lifestyles, which has resulted in an increased demand for low-alcohol and alcohol-free spirits. Trends in the Spirits market in the CIS region include the rise of local spirits and the increasing popularity of cocktail culture. Local spirits, such as vodka and brandy, have long been popular in the region, and their demand continues to grow. This can be attributed to their cultural significance and the pride that consumers feel in supporting local industries. The cocktail culture trend has also gained traction in the CIS region, with consumers becoming more interested in experimenting with different spirits and flavors. This has led to an increase in the consumption of spirits for mixology purposes. Local special circumstances in the CIS region also contribute to the development of the Spirits market. For example, the region has a rich history and tradition of spirits production, particularly in countries like Russia and Ukraine. This has created a strong foundation for the industry and provides a competitive advantage in terms of product quality and expertise. Additionally, the region has a large population and a growing tourism industry, which further fuels the demand for spirits. Underlying macroeconomic factors, such as economic growth and stability, also play a role in the development of the Spirits market in CIS. As the economies of many CIS countries continue to grow, consumers have more disposable income to spend on luxury goods, including spirits. Furthermore, political stability and favorable business environments attract foreign investments, leading to increased competition and innovation in the market. In conclusion, the Spirits market in CIS is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. As consumers in the region become more discerning and interested in trying new products, the demand for premium and unique spirits continues to rise. The region's rich history and tradition of spirits production, along with its growing middle class and tourism industry, further contribute to the market's development.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.