Spirits - Eastern Europe

The Spirits market in Eastern Europe has been experiencing significant growth in recent years. Customer preferences for premium and craft spirits, as well as the increasing popularity of cocktails, have been driving this trend. Additionally, local special circumstances and underlying macroeconomic factors have also contributed to the development of the market. Customer preferences in Eastern Europe have shifted towards higher quality and premium spirits. Consumers are increasingly willing to spend more on spirits that offer unique flavors and high-quality ingredients. Craft spirits, in particular, have gained popularity as consumers seek out locally produced and artisanal products. This preference for premium and craft spirits is in line with global trends, as consumers become more discerning and seek out unique and high-quality drinking experiences. Another key trend in the Eastern European Spirits market is the growing popularity of cocktails. Consumers are becoming more adventurous in their drinking choices and are increasingly interested in trying new and innovative cocktails. This trend has been fueled by the rise of cocktail bars and mixology culture in the region. As a result, spirits such as vodka, gin, and rum, which are commonly used in cocktails, have seen increased demand. Local special circumstances in Eastern Europe have also contributed to the growth of the Spirits market. Many countries in the region have a strong tradition of spirit production, with vodka being a particularly popular choice. This cultural heritage has created a strong foundation for the market and has helped to drive consumer interest in spirits. Additionally, the region's rich history and diverse cultural influences have also contributed to the development of unique and distinctive spirits. Underlying macroeconomic factors have also played a role in the growth of the Spirits market in Eastern Europe. Economic stability and rising disposable incomes have increased consumer purchasing power and allowed for greater spending on premium and craft spirits. Additionally, the growing tourism industry in the region has also contributed to the market's development, as tourists are often interested in trying local spirits and experiencing the drinking culture of the countries they visit. In conclusion, the Spirits market in Eastern Europe has been experiencing growth due to customer preferences for premium and craft spirits, the increasing popularity of cocktails, local special circumstances, and underlying macroeconomic factors. As consumer tastes continue to evolve and the market becomes more competitive, it will be important for spirits producers and brands to adapt to these trends and meet the changing demands of consumers in the region.

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.