Wine - Lebanon

Lebanon, known for its rich history and diverse culture, has also made a name for itself in the wine market. With a wine-making tradition that dates back thousands of years, Lebanon has become a prominent player in the global wine industry.

Customer preferences: Lebanese consumers have developed a taste for both local and international wines. While the demand for traditional Lebanese wines remains strong, there is also a growing interest in imported wines from regions such as France, Italy, and Spain. Lebanese consumers appreciate the unique flavors and aromas of their local wines, which are often made from indigenous grape varieties. They also value the craftsmanship and attention to detail that goes into producing these wines.

Trends in the market: One of the key trends in the Lebanese wine market is the increasing popularity of organic and biodynamic wines. Consumers are becoming more conscious about the environmental impact of their choices and are seeking out wines that are made using sustainable practices. This trend is also reflected in the growing number of wineries in Lebanon that are adopting organic and biodynamic farming methods. Another trend in the market is the rise of wine tourism. Lebanon's scenic landscapes and picturesque vineyards have attracted wine enthusiasts from around the world. Many wineries now offer tours and tastings, providing visitors with an immersive experience and a chance to learn about the winemaking process. This has not only contributed to the growth of the wine industry but also to the overall tourism sector in Lebanon.

Local special circumstances: Lebanon's unique climate and terroir play a significant role in shaping the characteristics of its wines. The country's diverse topography, which includes mountains, valleys, and coastal plains, creates a wide range of microclimates that are ideal for grape cultivation. Additionally, the influence of the Mediterranean Sea helps to moderate temperatures and provide the necessary humidity for vine growth. Lebanon is also known for its indigenous grape varieties, such as Obeidi and Merwah for white wines, and Bekaa Valley and Cinsault for red wines. These grape varieties, along with international varieties like Cabernet Sauvignon and Syrah, contribute to the distinct flavors and aromas found in Lebanese wines.

Underlying macroeconomic factors: Lebanon's wine industry has faced challenges in recent years due to political instability and economic uncertainty. However, despite these obstacles, the wine market has continued to grow. This can be attributed to the resilience and determination of Lebanese winemakers, who have adapted to the changing circumstances and focused on producing high-quality wines. Furthermore, the increasing global recognition of Lebanese wines has helped to boost exports. Lebanese wineries have received numerous awards and accolades from prestigious international wine competitions, which has helped to raise the profile of Lebanese wines on the global stage. In conclusion, the wine market in Lebanon is thriving due to a combination of customer preferences, market trends, local special circumstances, and underlying macroeconomic factors. The growing demand for both local and international wines, the rise of organic and biodynamic wines, the emergence of wine tourism, and the unique climate and terroir of Lebanon all contribute to the development of the wine market in the country. Despite challenges, Lebanese winemakers continue to produce exceptional wines that are gaining recognition worldwide.

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.