Spirits - Eastern Asia

The Spirits market in Eastern Asia has been experiencing significant growth and development in recent years. Customer preferences in the region have played a key role in driving this growth. Eastern Asian consumers have shown a strong preference for premium and high-quality spirits. This can be attributed to the rising disposable income levels in the region, as well as a growing appreciation for luxury goods and experiences. Additionally, there is a cultural emphasis on socializing and entertaining, which has increased the demand for spirits in Eastern Asia. One of the key trends in the market is the increasing popularity of local spirits. Eastern Asian countries such as China, Japan, and South Korea have a rich tradition of producing their own unique spirits, such as Baijiu, Sake, and Soju respectively. These local spirits have gained popularity not only within their respective countries but also internationally. This trend can be attributed to a growing interest in exploring and celebrating local culture and traditions. Another trend in the market is the growing demand for premium and craft spirits. As consumers become more discerning and sophisticated in their tastes, there has been a shift towards higher quality and more unique spirits. This trend can be seen in the increasing number of craft distilleries and the introduction of limited edition and small-batch spirits in the market. Local special circumstances in Eastern Asia have also contributed to the development of the Spirits market. For example, in China, there has been a crackdown on corruption and extravagant gift-giving, which has affected the sales of high-end spirits. However, this has also led to a shift towards more premium and imported spirits, as consumers seek alternatives to traditional luxury brands. Underlying macroeconomic factors have also played a role in the growth of the Spirits market in Eastern Asia. The region has experienced rapid economic growth, which has led to an increase in disposable income levels and a growing middle class. This has resulted in a higher demand for luxury goods, including spirits. In conclusion, the Spirits market in Eastern Asia is experiencing significant growth and development driven by customer preferences for premium and high-quality spirits, the increasing popularity of local and craft spirits, local special circumstances, and underlying macroeconomic factors. As the region continues to grow economically and consumer tastes evolve, the Spirits market is expected to continue its upward trajectory.

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.