Wine - Laos

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

Customer preferences: Laos has traditionally been known for its beer consumption, but there has been a notable shift in consumer preferences towards wine. This can be attributed to several factors, including changing lifestyles and an increasing interest in Western culture. Wine is seen as a sophisticated and trendy beverage, appealing to a younger demographic who are looking for new and exciting experiences.

Trends in the market: One of the key trends in the wine market in Laos is the growing demand for imported wines. As the local wine production is limited, consumers are turning to imported wines to satisfy their cravings. This trend is driven by the desire for variety and the perception of imported wines as being of higher quality. Additionally, the rise in disposable income among the middle class has made imported wines more affordable and accessible. Another trend in the market is the increasing popularity of wine bars and restaurants. These establishments offer a wide selection of wines from different regions around the world, providing consumers with the opportunity to explore and discover new flavors. The rise in wine bars and restaurants can be attributed to the growing interest in wine culture and the desire for social experiences.

Local special circumstances: Laos is a landlocked country with a tropical climate, which poses challenges for local wine production. The lack of suitable grape-growing conditions and limited vineyard areas restrict the production of wine within the country. As a result, the majority of wines consumed in Laos are imported from countries such as France, Italy, Australia, and Chile.

Underlying macroeconomic factors: The growing economy and rising disposable income in Laos have played a significant role in the development of the wine market. As people's purchasing power increases, they are more willing to spend on luxury goods, including wine. Additionally, the expanding tourism industry in Laos has contributed to the growth of the wine market. Tourists, particularly those from Western countries, often have a preference for wine and are willing to explore the local wine offerings. In conclusion, the wine market in Laos is experiencing growth due to changing customer preferences, including a shift towards imported wines and the popularity of wine bars and restaurants. The local special circumstances, such as the limited local wine production, contribute to the demand for imported wines. The underlying macroeconomic factors, such as the growing economy and rising disposable income, also play a significant role in the development of the market. Overall, the wine market in Laos is expected to continue growing in the coming years as consumers' interest in wine continues to rise.

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.