Spirits - Lithuania

The Spirits market in Lithuania has been experiencing steady growth in recent years, driven by changing customer preferences and favorable market conditions.

Customer preferences: Lithuanian consumers have shown a growing interest in premium and craft spirits, as they seek unique and high-quality products. This trend is driven by a desire for more sophisticated and diverse flavors, as well as a willingness to pay a premium for products that offer a distinct and memorable experience. Additionally, there is a growing demand for spirits that are locally produced, as consumers value supporting domestic businesses and appreciate the authenticity and craftsmanship associated with local products.

Trends in the market: One notable trend in the Lithuanian Spirits market is the rise of flavored spirits, particularly flavored vodkas. These products appeal to consumers who are looking for new and exciting flavor combinations, and they have gained popularity as mixologists and bartenders incorporate them into innovative cocktails. Flavored spirits also offer opportunities for brand differentiation and product innovation, as manufacturers can experiment with a wide range of flavors to cater to different consumer preferences. Another trend in the market is the increasing popularity of ready-to-drink (RTD) cocktails. These pre-mixed cocktails offer convenience and ease of consumption, making them appealing to consumers who are looking for quick and hassle-free options. RTD cocktails also provide opportunities for brand collaborations and partnerships, as companies can team up to create unique and exciting flavor combinations.

Local special circumstances: Lithuania has a strong tradition of alcohol consumption, with spirits playing a significant role in the country's culture and social gatherings. This cultural affinity towards spirits has created a robust market for both domestic and international brands. Additionally, the country's favorable regulatory environment, including lower taxes on spirits compared to neighboring countries, has attracted both local and foreign manufacturers to invest in the market.

Underlying macroeconomic factors: The overall economic growth and increasing disposable income in Lithuania have contributed to the growth of the Spirits market. As consumers have more purchasing power, they are willing to spend on premium and higher-priced spirits, driving the demand for these products. Additionally, the growing tourism industry in Lithuania has also had a positive impact on the Spirits market, as tourists often seek out local spirits as souvenirs or to experience the country's drinking culture. In conclusion, the Spirits market in Lithuania is experiencing growth due to changing customer preferences, including a demand for premium and craft spirits, flavored spirits, and ready-to-drink cocktails. The country's cultural affinity towards spirits, favorable regulatory environment, and underlying macroeconomic factors such as economic growth and increasing disposable income are also contributing to the market's development. As the market continues to evolve, manufacturers and brands have the opportunity to cater to the specific preferences of Lithuanian consumers and capitalize on the growing demand for unique and high-quality spirits.

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.