Spirits - Western Asia

The Spirits market in Western Asia is experiencing significant growth and development in recent years. Customer preferences, trends in the market, local special circumstances, and underlying macroeconomic factors all contribute to this positive trend. Customer preferences in Western Asia play a crucial role in the development of the Spirits market. Consumers in this region have shown a growing interest in premium and luxury spirits, such as whiskey and vodka. This preference for high-quality and premium products is driven by a desire for exclusivity and a taste for sophistication. Additionally, Western Asian consumers are increasingly seeking unique and innovative spirits that offer a distinct flavor profile and are often willing to pay a premium for these products. Trends in the market further propel the growth of the Spirits industry in Western Asia. One notable trend is the rising popularity of craft spirits. Craft spirits, which are often produced in small batches and emphasize traditional production methods, have gained traction among consumers who value authenticity and artisanal craftsmanship. This trend is in line with the global shift towards artisanal and locally sourced products, and it presents opportunities for both local and international craft spirit producers to enter the Western Asian market. Local special circumstances also contribute to the growth of the Spirits market in Western Asia. The region is known for its rich cultural heritage and diverse culinary traditions, which often incorporate spirits into celebrations and social gatherings. This cultural significance of spirits creates a strong demand for a wide range of alcoholic beverages, including traditional spirits that are deeply rooted in local customs and traditions. Additionally, the increasing number of Western Asian tourists traveling abroad has led to a greater exposure to international spirits, which in turn fuels the demand for these products in the domestic market. Underlying macroeconomic factors also play a role in the development of the Spirits market in Western Asia. The region has experienced robust economic growth in recent years, leading to an expansion of the middle class and an increase in disposable income. This rise in purchasing power has allowed consumers to spend more on discretionary items, including alcoholic beverages. Moreover, Western Asian countries have witnessed a rapid urbanization process, which has resulted in changing lifestyles and consumption patterns. As urbanization continues, the demand for spirits is expected to grow further, driven by the increasing number of bars, restaurants, and entertainment venues in cities. Overall, the Spirits market in Western Asia is experiencing growth and development due to customer preferences for premium and luxury spirits, trends in the market such as the rise of craft spirits, local special circumstances that emphasize the cultural significance of spirits, and underlying macroeconomic factors such as economic growth and urbanization. These factors create a favorable environment for the Spirits industry to thrive in Western 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.