Spirits - Southern Europe

The Spirits market in Southern Europe has been experiencing steady growth in recent years. Customer preferences for premium and craft spirits, as well as a growing interest in cocktails, have contributed to this positive trend. Additionally, local special circumstances such as cultural traditions and tourism have played a role in shaping the market. Customer preferences in Southern Europe have shifted towards premium and craft spirits. Consumers are increasingly willing to spend more on high-quality spirits, seeking unique flavors and experiences. This trend is driven by a desire for authenticity and a growing appreciation for the craftsmanship involved in producing spirits. As a result, small-batch and artisanal spirits have gained popularity in the region. Another key customer preference in Southern Europe is the growing interest in cocktails. Consumers are becoming more adventurous in their drink choices and are experimenting with different flavors and ingredients. This has led to an increased demand for spirits that are versatile and can be used in a variety of cocktail recipes. Bartenders and mixologists are also playing a role in driving this trend, as they continue to create innovative and Instagram-worthy cocktails that attract customers. In terms of market trends, Southern European countries have seen a rise in the consumption of gin. Gin has become a popular spirit of choice, with a wide range of brands and flavors available in the market. This trend can be attributed to the versatility of gin in cocktails, as well as its association with a sophisticated and trendy drinking culture. Additionally, the rise of gin bars and gin festivals in the region has further fueled the demand for this spirit. Local special circumstances also contribute to the development of the Spirits market in Southern Europe. Cultural traditions, such as the production of traditional spirits like grappa in Italy or ouzo in Greece, have a strong influence on consumer preferences. These traditional spirits are often deeply rooted in the local culture and are considered a part of the national identity. As a result, they continue to be popular choices among consumers. Tourism also plays a significant role in shaping the Spirits market in Southern Europe. The region attracts millions of tourists each year, many of whom are interested in experiencing the local food and drink culture. This presents an opportunity for the spirits industry to showcase their products to a diverse range of consumers. Additionally, tourists often purchase spirits as souvenirs or gifts, contributing to the overall market growth. Underlying macroeconomic factors, such as economic stability and disposable income, also influence the Spirits market in Southern Europe. As the economy improves and consumer confidence increases, people are more willing to spend on premium spirits and indulge in the cocktail culture. Additionally, the growth of the hospitality industry, including bars and restaurants, has created a demand for spirits as well. Overall, the Spirits market in Southern Europe is developing in response to customer preferences for premium and craft spirits, as well as a growing interest in cocktails. Local special circumstances, such as cultural traditions and tourism, further shape the market. Underlying macroeconomic factors, such as economic stability and disposable income, also play a role in driving market growth.

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.