Spirits - Slovakia

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

Customer preferences: Slovakia has a long-standing tradition of consuming spirits, with a strong preference for locally produced products. Slovak consumers appreciate the quality and craftsmanship of domestic spirits, and they often choose them over imported brands. Vodka and herbal liqueurs are particularly popular among Slovak consumers, reflecting their taste for strong and flavorful spirits. In addition, there is a growing interest in premium and craft spirits, as consumers are becoming more discerning and willing to pay a higher price for unique and high-quality products.

Trends in the market: One of the key trends in the Slovak Spirits market is the increasing demand for flavored spirits. Slovak consumers are seeking new and exciting flavor profiles, and manufacturers are responding by introducing a wide range of flavored spirits, including fruit-infused vodkas and herbal liqueurs with unique botanical blends. This trend is driven by the desire for variety and experimentation, as consumers are looking for new taste experiences. Another trend in the market is the rising popularity of online sales channels. With the increasing penetration of internet and smartphones, more Slovak consumers are turning to online platforms to purchase their favorite spirits. Online sales offer convenience and a wider selection of products, allowing consumers to explore different brands and flavors from the comfort of their homes. This trend is expected to continue as e-commerce becomes more prevalent in Slovakia.

Local special circumstances: Slovakia has a rich heritage in the production of spirits, with many small-scale distilleries operating across the country. These distilleries often use traditional production methods and locally sourced ingredients, resulting in spirits that have a distinct and authentic character. This local special circumstance contributes to the popularity of domestic spirits among Slovak consumers, who appreciate the craftsmanship and unique flavors that these products offer.

Underlying macroeconomic factors: The growth of the Spirits market in Slovakia is also supported by favorable macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable income and consumer spending. As a result, Slovak consumers have more purchasing power to spend on indulgent products like spirits. Additionally, the tourism industry in Slovakia has been growing, attracting both domestic and international visitors who contribute to the demand for spirits. In conclusion, the Spirits market in Slovakia is witnessing growth due to changing customer preferences, such as the demand for flavored spirits and the preference for locally produced products. The market is also influenced by local special circumstances, including the presence of small-scale distilleries and traditional production methods. Favorable macroeconomic factors, such as economic growth and a thriving tourism industry, further contribute to the development of the market.

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.