Wine - Kazakhstan

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

Customer preferences: Kazakhstan, being a country with a rich history and diverse cultural influences, has developed a taste for wine. It is interesting to note that wine consumption in Kazakhstan has traditionally been associated with special occasions and celebrations. However, in recent years, there has been a shift in customer preferences, with wine becoming a popular choice for everyday consumption as well. This change in consumer behavior can be attributed to the increasing availability of a wide variety of wines in the market, catering to different tastes and preferences.

Trends in the market: One of the key trends in the wine market in Kazakhstan is the growing demand for imported wines. Kazakhstan has witnessed a rise in disposable incomes, leading to an increase in the purchasing power of consumers. As a result, consumers are willing to spend more on premium and imported wines, seeking a higher quality and a wider range of options. This trend is further fueled by the growing interest in wine culture and the desire to explore different flavors and styles from around the world. Another trend in the market is the emergence of domestic wine production. While imported wines still dominate the market, there has been a noticeable increase in the production of local wines. This can be attributed to the government's efforts to promote the development of the domestic wine industry and the growing interest among local producers to meet the rising demand for wine. Domestic wines are gaining recognition for their unique characteristics and are becoming a preferred choice for consumers looking to support local businesses and explore the country's own winemaking traditions.

Local special circumstances: Kazakhstan's geographical location and climate present unique challenges and opportunities for the wine industry. The country experiences extreme weather conditions, with hot summers and cold winters. This poses challenges for grape cultivation, as certain grape varieties may not thrive in such conditions. However, local winemakers have adapted by selecting grape varieties that are well-suited to the climate and employing modern viticultural practices to ensure optimal grape quality. This has resulted in the production of wines that reflect the terroir of Kazakhstan and offer a distinct flavor profile.

Underlying macroeconomic factors: The growing economy of Kazakhstan, coupled with rising disposable incomes, has played a significant role in driving the growth of the wine market. As consumers have more purchasing power, they are able to afford higher-priced wines and explore a wider range of options. Additionally, the government's efforts to promote tourism and develop the hospitality industry have also contributed to the growth of the wine market. The increasing number of hotels, restaurants, and bars in the country has created a demand for wines, both from domestic and international sources. In conclusion, the wine market in Kazakhstan is experiencing growth due to changing customer preferences, including a shift towards everyday consumption, the demand for imported wines, and the emergence of domestic production. The unique local circumstances, such as the country's climate and geographical location, have also influenced the market. Furthermore, underlying macroeconomic factors, such as the growing economy and government initiatives, have contributed to the development of the wine market in Kazakhstan.

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.