Wine - Cuba

The Wine market in Cuba has been experiencing significant growth in recent years.

Customer preferences: Cuban consumers have shown a growing interest in wine, particularly among the younger generation. Wine is increasingly seen as a sophisticated and trendy beverage choice, and its consumption is often associated with socializing and special occasions. As Cuba opens up to the global market, there is a growing awareness and appreciation for different types and varieties of wine.

Trends in the market: One of the key trends in the Cuban wine market is the increasing demand for imported wines. As the country's economy continues to develop and international trade barriers are lifted, Cuban consumers have access to a wider range of imported wines from around the world. This has led to a diversification of the wine market, with consumers exploring different regions and grape varieties. Another trend is the rise of wine tourism in Cuba. The country's unique cultural heritage and beautiful landscapes have attracted wine enthusiasts from around the world. Wine tours and tastings have become popular activities for tourists, providing an opportunity for local wineries to showcase their products and increase sales.

Local special circumstances: Cuba's unique climate and soil conditions present both opportunities and challenges for the wine market. The country's warm and tropical climate is not traditionally associated with wine production, but innovative techniques and investments have allowed local wineries to overcome these obstacles. Cuban winemakers are experimenting with different grape varieties and cultivation methods to produce high-quality wines that reflect the country's terroir.

Underlying macroeconomic factors: The recent economic reforms in Cuba have played a significant role in the development of the wine market. The government's efforts to attract foreign investment and promote tourism have created a more favorable business environment for wine producers. Additionally, the gradual opening of the Cuban market to international trade has increased the availability of imported wines and fostered competition, driving innovation and quality improvement in the local wine industry. In conclusion, the Wine market in Cuba is experiencing growth due to changing customer preferences, increasing demand for imported wines, the rise of wine tourism, local special circumstances, and underlying macroeconomic factors. As the country continues to open up to the global market, the wine industry in Cuba is expected to further expand and diversify, offering exciting opportunities for both local and international wine producers.

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.