Wine - Luxembourg

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

Customer preferences: Luxembourg has a strong wine culture, with a significant portion of the population enjoying wine as a regular part of their lifestyle. The demand for wine is driven by a combination of factors, including social drinking occasions, dining out, and cultural traditions.

Trends in the market: One of the key trends in the Luxembourg wine market is the increasing demand for high-quality wines. Consumers are becoming more knowledgeable about different wine regions and grape varieties, and they are willing to pay a premium for wines that offer a unique and enjoyable drinking experience. This trend is particularly evident in the growing popularity of wines from boutique wineries and organic and biodynamic wines. Another trend in the market is the rising interest in sparkling wines. Sparkling wines, such as Champagne and Prosecco, are increasingly being consumed not only for special occasions but also as an everyday indulgence. This trend can be attributed to changing consumer preferences and the influence of global trends in the wine market.

Local special circumstances: Luxembourg is a small country with a rich winemaking tradition. The country has a favorable climate and soil conditions for grape cultivation, which has led to the production of high-quality wines. Luxembourg is known for its white wines, particularly those made from the Riesling and Pinot Blanc grape varieties. These wines are highly regarded for their crisp acidity, fruity flavors, and elegant structure.

Underlying macroeconomic factors: Luxembourg's strong economy and high standard of living have contributed to the growth of the wine market. The country has a relatively affluent population with disposable income to spend on luxury goods, including wine. Additionally, Luxembourg's position as a financial center and its large expatriate community have also contributed to the demand for wine, as expatriates and international visitors often have a higher propensity to consume wine. In conclusion, the Wine market in Luxembourg is driven by customer preferences for high-quality wines and the rising interest in sparkling wines. The country's favorable climate and winemaking tradition contribute to the production of high-quality wines, particularly white wines. Luxembourg's strong economy and affluent population, as well as its position as a financial center, further support the growth of the wine market.

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.