Wine - Croatia

Croatia, known for its stunning coastline and rich cultural heritage, is also making a name for itself in the wine market. With a long history of winemaking dating back to the Roman times, Croatia has a diverse range of indigenous grape varieties and unique wine regions.

Customer preferences: Croatian consumers have shown a growing interest in wine, with a shift towards higher quality and premium offerings. While traditional wine consumption has been dominated by red wines, there is an increasing demand for white and rosé wines, particularly during the summer months. Local consumers also appreciate wines made from indigenous grape varieties, which showcase the country's winemaking heritage.

Trends in the market: One of the key trends in the Croatian wine market is the rise of boutique wineries. These small-scale producers focus on producing limited quantities of high-quality wines, often from lesser-known grape varieties. This trend is driven by consumers' desire for unique and artisanal products, as well as the increasing popularity of wine tourism in the country. Boutique wineries offer visitors the opportunity to taste and learn about the wines directly from the winemakers, creating a more personalized and immersive experience. Another trend in the market is the growing interest in organic and biodynamic wines. Croatian consumers are becoming more conscious about their health and the environment, and are seeking out wines that are produced using sustainable and natural methods. This trend is also influenced by the global movement towards organic and biodynamic farming practices, which prioritize biodiversity and soil health.

Local special circumstances: Croatia's unique geography and climate contribute to the distinct characteristics of its wines. The country has a diverse range of microclimates, from the coastal regions with Mediterranean influences to the continental regions with cooler temperatures. This allows for the cultivation of a wide variety of grape varieties, each with its own flavor profile. Additionally, Croatia's proximity to the Adriatic Sea provides a cooling effect on the vineyards, resulting in wines with vibrant acidity and minerality.

Underlying macroeconomic factors: Croatia's growing tourism industry has had a positive impact on the wine market. As more tourists visit the country, there is an increased demand for local products, including wines. This has led to a boost in wine sales, particularly in popular tourist destinations such as Dubrovnik and Split. The government has also recognized the potential of wine tourism and has implemented initiatives to promote wine regions and wineries to both domestic and international visitors. Furthermore, Croatia's accession to the European Union in 2013 has opened up new opportunities for the wine industry. The country now benefits from EU trade agreements, allowing Croatian wines to be exported more easily to other European countries. This has increased the visibility of Croatian wines on the international stage and has attracted foreign investment in the industry. In conclusion, the wine market in Croatia is experiencing growth and diversification, driven by changing customer preferences, emerging trends, unique local circumstances, and favorable macroeconomic factors. With its rich winemaking heritage and stunning landscapes, Croatia is poised to become a prominent player in the global wine 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.