Wine - Bulgaria

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

Customer preferences: Bulgarian consumers have shown a growing interest in wine, with a particular preference for local varieties. This is partly due to the rich history and tradition of winemaking in the country, which has resulted in a wide range of unique and high-quality wines. Additionally, there has been a shift towards healthier and more sophisticated drinking habits, with consumers increasingly choosing wine over other alcoholic beverages.

Trends in the market: One of the key trends in the Bulgarian wine market is the increasing popularity of organic and natural wines. Consumers are becoming more conscious of the environmental impact of their choices and are seeking out wines that are produced using sustainable and organic methods. This trend is also driven by the growing demand for healthier and more natural products. Another trend in the market is the rise of wine tourism. Bulgaria's picturesque vineyards and wineries have become popular attractions for both domestic and international tourists. This has led to an increase in wine-related events and activities, such as wine tastings, vineyard tours, and wine festivals. Wine tourism not only boosts the sales of local wineries but also promotes the country's wine culture and heritage.

Local special circumstances: Bulgaria has a long history of winemaking, dating back thousands of years. The country's unique climate and diverse terroir provide ideal conditions for grape cultivation, resulting in wines with distinct flavors and characteristics. Bulgarian winemakers have also embraced modern winemaking techniques and technologies, further enhancing the quality of their products. Furthermore, the affordability of Bulgarian wines compared to wines from other countries has made them attractive to both domestic and international consumers. This has helped to position Bulgaria as a competitive player in the global wine market, with exports increasing in recent years.

Underlying macroeconomic factors: The growth of the wine market in Bulgaria can be attributed to several macroeconomic factors. Firstly, the country's stable economic growth has increased disposable incomes, allowing consumers to spend more on luxury items such as wine. Secondly, the government has implemented policies to support the development of the wine industry, including financial incentives for winemakers and efforts to promote Bulgarian wines both domestically and internationally. Lastly, the country's membership in the European Union has facilitated trade and export opportunities, enabling Bulgarian winemakers to reach a wider market. In conclusion, the Wine market in Bulgaria is experiencing growth due to changing customer preferences, including a preference for local varieties and an increasing interest in organic and natural wines. The rise of wine tourism has also contributed to the market's development. Additionally, local special circumstances, such as Bulgaria's rich winemaking history and favorable climate, have played a significant role. The underlying macroeconomic factors, including stable economic growth, government support, and EU membership, have further supported the growth of the market.

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.