Spirits - Southern Asia

The Spirits market in Southern Asia is experiencing significant growth and development in recent years. Customer preferences, local special circumstances, and underlying macroeconomic factors are all contributing to this trend. Customer preferences in Southern Asia are shifting towards premium and high-quality spirits. As disposable incomes rise and consumers become more sophisticated, there is a growing demand for premium spirits such as whisky, vodka, and rum. This trend is driven by a desire for status and prestige, as well as a growing interest in cocktail culture and mixology. Consumers are willing to pay a premium for spirits that are perceived as high-end and exclusive. Trends in the market also reflect the global rise in craft spirits. Consumers in Southern Asia are increasingly seeking out locally produced spirits that offer unique flavors and artisanal craftsmanship. This trend is driven by a desire for authenticity and a connection to local traditions and culture. Craft spirits are often seen as more authentic and high-quality compared to mass-produced brands, and consumers are willing to pay a premium for these products. Local special circumstances in Southern Asia also contribute to the growth of the Spirits market. Many countries in the region have large populations of young adults who are entering the legal drinking age. This demographic shift is creating a new generation of consumers who are interested in exploring different types of spirits and experimenting with new flavors. Additionally, the region's growing middle class is driving increased consumption of spirits as a form of socializing and entertainment. Underlying macroeconomic factors are also playing a role in the development of the Spirits market in Southern Asia. Economic growth in the region has led to rising incomes and increased consumer spending power. This has created a larger market for spirits, as more consumers are able to afford these products. Additionally, urbanization and the growth of the hospitality industry have created new opportunities for the Spirits market, as consumers are increasingly exposed to a wide range of spirits and have more opportunities to try new products. In conclusion, the Spirits market in Southern Asia is experiencing growth and development due to shifting customer preferences, local special circumstances, and underlying macroeconomic factors. As consumers in the region become more sophisticated and affluent, there is a growing demand for premium and craft spirits. This trend is driven by a desire for status, authenticity, and unique flavors. Additionally, demographic shifts and economic growth are creating new opportunities for the Spirits market in Southern Asia.

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.