Wine - Bosnia and Herzegovina

The Wine market in Bosnia and Herzegovina has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Bosnian and Herzegovinian consumers have shown an increasing interest in wine, with a growing number of individuals incorporating it into their social and dining experiences. Wine is no longer seen as a luxury item, but rather as an affordable and accessible beverage for everyday consumption. This shift in consumer preferences can be attributed to a combination of factors, including a growing middle class, increased exposure to international cuisines, and a desire for a more sophisticated and diverse drinking experience.

Trends in the market: One of the key trends in the Bosnian and Herzegovinian wine market is the rise of domestic wine production. Local wineries have been investing in modern technology and techniques, resulting in the production of high-quality wines that are gaining recognition both domestically and internationally. This trend is driven by a desire to promote local products and support the local economy, as well as the increasing demand for unique and authentic experiences. Additionally, there has been a growing interest in organic and natural wines, with consumers becoming more conscious of the environmental impact of their choices. Another trend in the market is the growing popularity of wine tourism. Bosnia and Herzegovina's picturesque landscapes and rich cultural heritage make it an attractive destination for wine enthusiasts. Wineries have started offering tours, tastings, and accommodation options, creating a unique experience for visitors. This trend not only boosts the wine industry but also contributes to the overall development of the tourism sector in the country.

Local special circumstances: Bosnia and Herzegovina has a long history of wine production, dating back to the Roman times. The country's diverse climate and varied terroirs provide ideal conditions for growing a wide range of grape varieties, resulting in a rich and diverse wine culture. The local wine industry has benefited from this heritage, as well as the knowledge and expertise passed down through generations. Furthermore, the relatively low land and labor costs in Bosnia and Herzegovina make it an attractive location for wine production, allowing local wineries to offer competitive prices without compromising on quality.

Underlying macroeconomic factors: The growing wine market in Bosnia and Herzegovina can also be attributed to favorable macroeconomic factors. The country's economy has been steadily improving, with increasing disposable incomes and a growing middle class. This has led to a higher demand for premium and imported wines, as consumers are willing to spend more on quality products. Additionally, the government has implemented policies to support the wine industry, such as providing financial incentives for vineyard expansion and promoting exports. These factors have created a conducive environment for the growth and development of the wine market in Bosnia and Herzegovina. In conclusion, the Wine market in Bosnia and Herzegovina is experiencing growth due to changing customer preferences, local special circumstances, and favorable macroeconomic factors. The rise of domestic wine production, the growing popularity of wine tourism, and the country's long-standing wine culture contribute to the market's development. With continued investment and support, the Bosnian and Herzegovinian wine market is poised for further growth in the coming years.

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.