Wine - Iraq

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

Customer preferences: In Iraq, there has been a growing interest in wine consumption, particularly among the younger population. This can be attributed to a shift in cultural attitudes towards alcohol and an increasing exposure to international trends. Customers are becoming more adventurous in their wine choices, seeking out different varieties and flavors from around the world. Red wine is especially popular, with its perceived health benefits and rich flavors appealing to Iraqi consumers.

Trends in the market: One of the key trends in the Iraqi wine market is the rising demand for imported wines. As the country opens up to international trade and tourism, consumers are being exposed to a wider range of wine options. This has led to an increase in the availability of imported wines in local supermarkets and wine shops. Additionally, there is a growing interest in wine education and appreciation, with wine tasting events and courses becoming more common. Another trend in the market is the emergence of local wineries. While the wine industry in Iraq is still nascent, there are a few local wineries that have started producing their own wines. These wineries are often focused on producing wines that cater to the local palate, incorporating traditional flavors and ingredients. This trend reflects a desire for locally-produced goods and a sense of national pride.

Local special circumstances: Iraq has a unique set of circumstances that contribute to the development of its wine market. Firstly, the country has a rich culinary tradition, with a strong emphasis on food and beverage culture. Wine is seen as a natural complement to Iraqi cuisine, and its popularity has grown alongside the country's culinary scene. Another special circumstance is the increasing number of expatriates and foreign workers in Iraq. These individuals often come from countries with well-established wine cultures and bring their preferences and knowledge with them. This has created a demand for a wider variety of wines, both imported and locally produced.

Underlying macroeconomic factors: The growth of the wine market in Iraq can also be attributed to underlying macroeconomic factors. The country has experienced a period of relative stability and economic growth in recent years, which has led to an increase in disposable income. As a result, consumers have more purchasing power and are able to afford higher quality wines. Furthermore, Iraq's growing middle class is driving the demand for luxury goods, including wine. Wine is often seen as a symbol of sophistication and social status, and the rising middle class is increasingly incorporating wine into their lifestyle. In conclusion, the Wine market in Iraq is developing due to changing customer preferences, the emergence of local wineries, local special circumstances, and underlying macroeconomic factors. As consumer interest in wine continues to grow, the market is expected to expand further in the coming years.

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.