Spirits - EAEU

The Spirits market in EAEU has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances. Customer preferences in the Spirits market in EAEU have been shifting towards premium and craft spirits, as consumers seek higher quality and unique products. This trend is driven by the growing middle class and increasing disposable income, which allows consumers to trade up to more expensive and exclusive spirits. Additionally, there is a rising interest in locally produced spirits, as consumers value authenticity and support for local businesses. Trends in the market include the rise of flavored spirits, such as fruit-infused vodkas and botanical gins. These products appeal to younger consumers who are looking for innovative and exciting flavors. Another trend is the increasing popularity of cocktail culture, with consumers enjoying spirits-based cocktails both at home and in bars and restaurants. This trend has led to a demand for premium spirits that are suitable for mixing in cocktails. Local special circumstances in the Spirits market in EAEU include the historical and cultural significance of certain spirits in the region. For example, vodka has a long-standing tradition in countries like Russia and Belarus, and is deeply ingrained in the culture. This has created a strong domestic market for vodka, with consumers showing a preference for locally produced brands. Additionally, there are specific regulations and labeling requirements for spirits in the EAEU region, which can impact the market dynamics and consumer choices. Underlying macroeconomic factors that have contributed to the growth of the Spirits market in EAEU include the overall economic development of the region. As countries in the EAEU experience economic growth and rising incomes, consumers have more purchasing power to spend on discretionary items like spirits. Additionally, the EAEU has been working towards reducing trade barriers and increasing cooperation among member states, which has facilitated the movement of spirits within the region and opened up new market opportunities. In conclusion, the Spirits market in EAEU is evolving to meet changing customer preferences and emerging trends. The demand for premium and craft spirits, flavored spirits, and spirits suitable for cocktails is driving growth in the market. Local special circumstances, such as the historical significance of certain spirits and specific regulations, also play a role in shaping the market dynamics. Overall, the growth of the Spirits market in EAEU is supported by the underlying macroeconomic factors of economic development and regional cooperation.

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.