Spirits - Papua New Guinea

The Spirits market in Papua New Guinea is experiencing steady growth due to changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: In Papua New Guinea, customers have shown a growing interest in premium and imported spirits. This shift in preference can be attributed to the increasing disposable income and changing lifestyles of consumers. Consumers are becoming more willing to experiment with different types of spirits and are seeking high-quality products that offer a unique taste and experience. Additionally, there is a growing demand for spirits that are perceived as status symbols, particularly among the younger population.

Trends in the market: One of the key trends in the spirits market in Papua New Guinea is the rising popularity of craft spirits. Consumers are increasingly drawn to locally-produced spirits that offer a sense of authenticity and craftsmanship. This trend is driven by the desire for unique flavors and the support of local businesses. Craft distilleries are gaining traction and are able to differentiate themselves by offering small-batch, handcrafted spirits that cater to the evolving tastes of consumers. Another trend in the market is the increasing demand for ready-to-drink (RTD) spirits. RTD spirits are pre-mixed alcoholic beverages that are convenient and easy to consume. This trend is driven by the busy lifestyles of consumers who are looking for convenient options without compromising on taste. RTD spirits are often packaged in cans or bottles, making them portable and suitable for on-the-go consumption.

Local special circumstances: Papua New Guinea has a unique cultural heritage that influences the spirits market. Traditional spirits, such as kava and sago wine, continue to hold cultural significance and are consumed during ceremonial events and social gatherings. These local spirits have a loyal customer base and contribute to the overall growth of the market. Additionally, the tourism industry in Papua New Guinea plays a role in driving the demand for spirits, as tourists often seek to experience local flavors and beverages.

Underlying macroeconomic factors: The steady growth in the spirits market in Papua New Guinea can be attributed to several macroeconomic factors. The country has experienced economic growth in recent years, leading to an increase in disposable income and consumer spending. This has created a favorable environment for the spirits market to thrive. Furthermore, the growing urbanization and westernization of Papua New Guinea have influenced consumer preferences and created a demand for international spirits and trends. In conclusion, the Spirits market in Papua New Guinea is developing due to changing customer preferences towards premium and imported spirits, emerging trends such as craft spirits and ready-to-drink options, local special circumstances including traditional spirits and the tourism industry, and underlying macroeconomic factors such as economic growth and urbanization. As these factors continue to shape the market, the spirits industry in Papua New Guinea is expected to witness further growth and diversification.

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.