Wine - Baltics

The Wine market in Baltics has been experiencing significant growth in recent years.

Customer preferences: Customers in the Baltics have shown a growing interest in wine, with a shift towards higher quality and premium products. This can be attributed to a combination of factors, including increasing disposable income, changing lifestyles, and a desire for more sophisticated drinking options. Additionally, there has been a rise in wine tourism in the region, with more people visiting vineyards and wineries to learn about the production process and sample different varieties of wine.

Trends in the market: One of the key trends in the Wine market in the Baltics is the increasing popularity of organic and natural wines. Consumers are becoming more conscious about the environmental impact of their choices and are seeking out wines that are produced using sustainable farming practices. This trend is also driven by the perception that organic and natural wines are of higher quality and offer a more authentic taste. As a result, there has been a growing demand for organic and natural wines from both domestic and international producers. Another trend in the market is the growing preference for sparkling wines. Sparkling wines, such as Prosecco and Champagne, have become increasingly popular among consumers in the Baltics. This can be attributed to the celebratory nature of sparkling wines, which are often associated with special occasions and festive events. Additionally, the rise of wine bars and cocktail culture has contributed to the growing demand for sparkling wines, as they are often used as key ingredients in popular cocktails.

Local special circumstances: The Wine market in the Baltics is also influenced by local special circumstances. For example, the region has a long history of winemaking, with vineyards dating back centuries. This heritage has helped to create a sense of pride and appreciation for wine among the local population. Furthermore, the Baltic countries have a strong culinary tradition, with wine playing a central role in many traditional dishes and celebrations. This cultural connection to wine has contributed to the growth of the market in the region.

Underlying macroeconomic factors: The growth of the Wine market in the Baltics can also be attributed to underlying macroeconomic factors. The region has experienced steady economic growth in recent years, resulting in an increase in disposable income and consumer spending power. This has allowed consumers to allocate a larger portion of their budget towards premium and higher-priced wines. Additionally, the Baltic countries have seen a rise in tourism, with more visitors coming to the region for leisure and business purposes. This has created a larger customer base for the Wine market, as tourists often seek out local wines as part of their cultural experience. Overall, the Wine market in the Baltics is expected to continue its growth trajectory, driven by changing customer preferences, local special circumstances, and underlying macroeconomic factors.

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.