Wine - BRICS

The Wine market in BRICS continues to experience significant growth and development. Customer preferences for wine have been shifting, leading to new trends in the market. Local special circumstances and underlying macroeconomic factors have also played a role in shaping the wine market in these countries.

Customer preferences: In recent years, there has been a notable increase in the demand for wine in BRICS countries. Customers are becoming more interested in exploring different types and varieties of wine, leading to a growing market for both domestic and imported wines. Additionally, there is a rising trend of wine consumption among younger consumers, who are looking for new and unique flavors. This has led to an increase in the popularity of boutique wineries and small-scale producers.

Trends in the market: Brazil, Russia, India, China, and South Africa each have their own unique trends in the wine market. In Brazil, there has been a growing interest in sparkling wines, particularly among the younger population. This can be attributed to the country's vibrant and festive culture. In Russia, there has been a shift towards premium and luxury wines, as consumers are willing to spend more on high-quality products. India, on the other hand, has seen a rise in the consumption of red wine, which is often associated with health benefits. China's wine market has been expanding rapidly, with a focus on imported wines, particularly those from France and Australia. South Africa has also experienced growth in its wine market, with a focus on sustainable and organic wines.

Local special circumstances: Each BRICS country has its own unique set of circumstances that influence the wine market. In Brazil, for example, the climate is favorable for grape cultivation, which has led to an increase in domestic wine production. Russia, on the other hand, has a long-standing tradition of wine consumption, dating back to the Soviet era. This has created a strong wine culture in the country. India has a large population of vegetarian consumers, which has led to an increased demand for vegetarian-friendly wines. China's growing middle class has contributed to the rise in wine consumption, as consumers have more disposable income to spend on luxury goods. South Africa's wine industry has benefited from its proximity to international markets, making it easier to export wines to other countries.

Underlying macroeconomic factors: The growth of the wine market in BRICS countries can also be attributed to underlying macroeconomic factors. As these countries continue to experience economic growth, consumers have more disposable income to spend on luxury goods, including wine. Additionally, globalization has made it easier for consumers to access a wide range of wines from different countries. This has led to an increase in the variety of wines available in the market, catering to different customer preferences. Government policies and regulations also play a role in shaping the wine market in each country, with some governments implementing measures to promote domestic wine production and consumption. Overall, the wine market in BRICS countries is developing in response to changing customer preferences, local special circumstances, and underlying macroeconomic factors. As these countries continue to experience economic growth and cultural shifts, the wine market is expected to further expand and diversify 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.