Spirits - Iraq

The Spirits market in Iraq has been experiencing significant growth in recent years. Customer preferences have shifted towards premium and imported spirits, and there is a growing demand for a variety of alcoholic beverages. This trend can be attributed to several factors, including changing consumer tastes, increasing disposable income, and a growing urban population.

Customer preferences: In Iraq, customer preferences in the Spirits market have been shifting towards premium and imported products. This can be attributed to changing consumer tastes and an increasing desire for high-quality alcoholic beverages. Consumers are becoming more knowledgeable about different types of spirits and are willing to pay a premium for brands that offer unique flavors and superior quality. Additionally, there is a growing demand for imported spirits, as consumers are seeking out international brands that are perceived to be of higher quality.

Trends in the market: One of the key trends in the Spirits market in Iraq is the increasing demand for a variety of alcoholic beverages. While whiskey and vodka have traditionally been the most popular spirits in the country, there is a growing interest in other types of spirits such as rum, tequila, and gin. This trend can be attributed to changing consumer preferences and a desire for new and unique flavors. As a result, there has been a proliferation of new brands and products in the market, offering consumers a wider range of choices. Another trend in the market is the rise of craft spirits. Craft spirits are gaining popularity among consumers who appreciate the artisanal production methods and unique flavors offered by these products. This trend mirrors the global trend towards craft spirits, where consumers are increasingly seeking out small-batch, locally-produced spirits that offer a more personalized and authentic drinking experience.

Local special circumstances: Iraq has a relatively young population, with a large proportion of the population under the age of 30. This demographic factor has contributed to the growth of the Spirits market, as younger consumers are more open to trying new and different types of alcoholic beverages. Additionally, the urban population in Iraq is growing, which has led to an increase in the number of bars, restaurants, and hotels that offer a wide selection of spirits. This has created more opportunities for consumers to explore different brands and flavors.

Underlying macroeconomic factors: The growth of the Spirits market in Iraq can also be attributed to underlying macroeconomic factors. The country has experienced a period of relative stability and economic growth in recent years, which has led to an increase in disposable income. As a result, consumers have more money to spend on discretionary items such as premium spirits. Additionally, Iraq has a large oil-dependent economy, which has led to an increase in the number of expatriates and foreign workers in the country. These individuals often have higher incomes and are more likely to purchase imported spirits, further driving the growth of the market. In conclusion, the Spirits market in Iraq is experiencing significant growth due to changing customer preferences, a desire for premium and imported products, and underlying macroeconomic factors. The market is characterized by a growing demand for a variety of alcoholic beverages, including craft spirits, and is fueled by a young and urban population with increasing disposable income. As the market continues to evolve, it is likely that we will see further growth and diversification in the Spirits market in Iraq.

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.