Wine - Estonia

The Wine market in Estonia has been experiencing steady growth in recent years.

Customer preferences: Estonian consumers have shown a growing interest in wine, with an increasing number of people incorporating wine into their daily lives. Wine is no longer seen as a luxury item, but rather as a beverage that can be enjoyed on a regular basis. This shift in consumer preferences can be attributed to several factors. Firstly, there has been a rise in disposable income levels, allowing more people to afford wine as a regular purchase. Additionally, there has been a greater exposure to international cuisine and culture, leading to a growing appreciation for wine as a complement to food. Lastly, health-consciousness has also played a role, as many consumers view wine as a healthier alternative to other alcoholic beverages.

Trends in the market: One of the key trends in the Estonian wine market is the increasing popularity of imported wines. Estonian consumers are becoming more adventurous in their wine choices and are seeking out wines from different regions and countries. This trend can be attributed to the growing exposure to international travel and the influence of global wine trends. As a result, there has been a significant increase in the availability of imported wines in local stores and restaurants. Another trend in the market is the growing demand for organic and sustainable wines. Estonian consumers are becoming more conscious of the environmental and health impacts of their purchasing decisions. As a result, there has been an increased demand for wines that are produced using organic and sustainable farming practices. This trend is in line with global consumer preferences for sustainable and eco-friendly products.

Local special circumstances: One of the unique aspects of the Estonian wine market is the preference for white wines. Estonian consumers have traditionally favored white wines, particularly dry white wines. This preference can be attributed to the local cuisine, which often includes fish and seafood dishes that pair well with white wines. Additionally, the cool climate of Estonia is better suited for the production of white wines, which has further contributed to the popularity of this category.

Underlying macroeconomic factors: The growth of the wine market in Estonia can be attributed to several underlying macroeconomic factors. Firstly, Estonia has experienced strong economic growth in recent years, which has resulted in higher disposable incomes and increased consumer spending power. This has allowed more people to afford wine as a regular purchase. Additionally, the country has a strong tourism industry, with a growing number of international visitors. This has created a demand for a wider variety of wines, including those from different regions and countries. Furthermore, Estonia's membership in the European Union has facilitated the importation of wines from other EU countries, making them more readily available to consumers.

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.