Wine - CIS

The Wine market in CIS has been experiencing significant growth in recent years, driven by changing consumer preferences, emerging trends, and local special circumstances.

Customer preferences: Customer preferences in the Wine market in CIS have been shifting towards higher quality and premium wines. Consumers are becoming more knowledgeable about different wine varieties and are willing to pay a premium for wines that offer unique flavors and characteristics. There is also a growing demand for organic and natural wines, as consumers are becoming more health-conscious and environmentally aware. In addition, there is a trend towards wine consumption as a social activity, with consumers increasingly enjoying wine as part of dining experiences or social gatherings.

Trends in the market: One of the key trends in the Wine market in CIS is the increasing popularity of local wines. Consumers are showing a growing interest in wines produced within the region, as they appreciate the unique characteristics and flavors that these wines offer. This trend is driven by a desire to support local producers and promote regional identity. In addition, there is a growing trend towards wine tourism, with consumers visiting vineyards and wineries to learn more about the wine production process and to experience wine tasting events. Another trend in the Wine market in CIS is the growing popularity of online wine sales. With the increasing use of internet and smartphones, consumers are increasingly turning to online platforms to purchase wines. This trend is driven by the convenience and wide selection of wines available online, as well as the ability to read reviews and recommendations from other customers. Online platforms also offer the opportunity for consumers to discover and try new and unique wines that may not be available in traditional retail stores.

Local special circumstances: The Wine market in CIS is influenced by several local special circumstances. One of the key factors is the rich history and tradition of wine production in the region. Countries in CIS have a long history of wine production, with many vineyards and wineries dating back several centuries. This heritage and expertise in wine production contribute to the reputation and quality of wines from the region. Another special circumstance is the climate and geography of the region. The CIS region has diverse climates, ranging from cool continental to Mediterranean, which allows for the production of a wide variety of wine grapes. The unique combination of soil types, elevation, and temperature variations contribute to the distinctive flavors and characteristics of wines from the region.

Underlying macroeconomic factors: Several underlying macroeconomic factors are driving the development of the Wine market in CIS. Economic growth and increasing disposable incomes have led to a rise in consumer spending on luxury goods, including wine. As consumers become more affluent, they are willing to spend more on premium wines and are seeking out unique and high-quality products. In addition, the growing middle class in CIS countries is driving the demand for wine. As more people enter the middle class, they are adopting Western lifestyles and preferences, including the consumption of wine. This trend is further supported by the increasing urbanization and Westernization of the region, which is leading to a shift in consumer preferences towards wine. Overall, the Wine market in CIS is experiencing growth due to changing consumer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The market is expected to continue to expand in the coming years, driven by the increasing demand for premium and local wines, the popularity of online wine sales, and the growing middle class in the region.

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.