Wine - Bhutan

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

Customer preferences: Bhutanese consumers have shown an increasing interest in wine, particularly among the younger generation. Wine is often associated with sophistication and is considered a trendy drink choice for social occasions. The growing popularity of wine can be attributed to changing lifestyles, increased exposure to international cultures, and a desire to explore new flavors. Bhutanese consumers are also becoming more health-conscious, and wine is perceived as a healthier alternative to other alcoholic beverages.

Trends in the market: One of the key trends in the wine market in Bhutan is the rising demand for imported wines. Bhutan has a small domestic wine production industry, and the majority of wines consumed in the country are imported. This trend can be attributed to the limited availability of locally produced wines and the desire for variety among consumers. Imported wines from countries such as France, Italy, Australia, and New Zealand are highly sought after by wine enthusiasts in Bhutan. Another trend in the market is the growing popularity of wine tourism. Bhutan is known for its scenic landscapes and rich cultural heritage, making it an attractive destination for wine enthusiasts. Wineries and vineyards in other countries have started to recognize this potential and are actively promoting wine tourism to Bhutanese consumers. This trend not only boosts the wine market but also contributes to the overall growth of the tourism industry in Bhutan.

Local special circumstances: Bhutan has a unique cultural and religious background that influences the wine market. The country is predominantly Buddhist, and alcohol consumption is generally discouraged in Buddhist teachings. However, Bhutanese society is becoming more open-minded, and wine is gradually being accepted as a social drink. The government has also relaxed regulations on alcohol consumption, allowing for the growth of the wine market.

Underlying macroeconomic factors: The growing economy of Bhutan has contributed to the development of the wine market. As disposable incomes rise, consumers have more purchasing power to spend on luxury goods, including wine. Additionally, the increasing number of international tourists visiting Bhutan has created a demand for wine, both in hotels and restaurants. The government's efforts to promote tourism and attract foreign investment have also played a role in the growth of the wine market. In conclusion, the wine market in Bhutan is experiencing significant growth due to changing consumer preferences, the rising demand for imported wines, the popularity of wine tourism, and the country's improving economy. Despite cultural and religious influences, Bhutanese consumers are embracing wine as a trendy and sophisticated drink choice. With the continued development of the tourism industry and increasing disposable incomes, the wine market in Bhutan is expected to continue its upward trajectory.

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.