Spirits - Finland

The Spirits market in Finland has been experiencing steady growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Finnish consumers have shown a growing interest in premium and craft spirits, seeking unique and high-quality products. This shift in customer preferences has led to an increase in demand for artisanal spirits, locally produced brands, and limited edition releases. Consumers are also becoming more conscious about the ingredients used in spirits, with a preference for natural and organic options.

Trends in the market: One of the key trends in the Finnish Spirits market is the rise of flavored spirits, especially in the vodka and gin categories. Flavored spirits offer consumers a wide range of options and allow them to experiment with different flavors and combinations. This trend has been driven by the growing popularity of cocktails and mixology in Finland, with consumers looking to recreate bar-like experiences at home. Another trend that has emerged in the Finnish Spirits market is the increasing demand for low-alcohol and alcohol-free alternatives. This trend is driven by health-conscious consumers who are seeking to reduce their alcohol consumption without compromising on taste. As a result, there has been a rise in the availability of non-alcoholic spirits and ready-to-drink cocktails in the market.

Local special circumstances: Finland has a strong tradition of consuming spirits, with a particular preference for vodka and aquavit. The country has a rich history of distilling and producing spirits, which has contributed to the development of a vibrant and diverse market. Finnish consumers have a deep appreciation for their local spirits and brands, supporting the growth of domestic producers. Furthermore, Finland has a state monopoly on the retail sale of spirits, with Alko being the only authorized retailer. This has created a unique market environment, with strict regulations and control over the sale and distribution of spirits. The state monopoly ensures that the market remains stable and that alcohol consumption is regulated in the country.

Underlying macroeconomic factors: The growth in the Spirits market in Finland can also be attributed to favorable macroeconomic factors. Finland has a strong economy and a high standard of living, which allows consumers to have disposable income to spend on premium and high-quality spirits. Furthermore, the tourism industry in Finland has been growing, attracting visitors who are interested in experiencing the local culture and trying traditional spirits. This has contributed to the demand for Finnish spirits both domestically and internationally. In conclusion, the Spirits market in Finland is experiencing growth due to changing customer preferences, emerging trends, local special circumstances, and favorable macroeconomic factors. Finnish consumers are increasingly seeking premium and craft spirits, flavored options, and low-alcohol alternatives. The country's rich tradition of spirit consumption and the state monopoly on the retail sale of spirits further contribute to the market's development. With a strong economy and a growing tourism industry, Finland presents a promising market for both domestic and international spirits producers.

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.