Wine - Malta

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

Customer preferences: Maltese consumers have shown a growing interest in wine, with an increasing number of people incorporating it into their daily lives. Wine is no longer seen as a luxury item, but rather as an affordable and enjoyable beverage for everyday consumption. This shift in consumer preferences can be attributed to several factors. Firstly, there has been an increase in wine education and awareness in Malta, with more people attending wine tastings and events. This has led to a greater appreciation for different types of wine and a desire to explore new flavors. Additionally, the influence of international travel has played a role in shaping consumer preferences, as Maltese tourists have been exposed to a wide variety of wines from around the world.

Trends in the market: One of the key trends in the Maltese wine market is the growing demand for organic and natural wines. Consumers are becoming increasingly conscious of the environmental impact of their purchasing decisions and are seeking out wines that are produced using sustainable and organic methods. This trend is in line with global consumer preferences, as more people are opting for organic and natural products in various industries. In response to this trend, local wine producers in Malta have started to focus on organic and natural wine production, offering a wider range of options for consumers. Another trend in the market is the increasing popularity of wine tourism. Malta's picturesque vineyards and wineries have become a destination for wine enthusiasts, attracting both locals and tourists. Wine tours and tastings have become a popular activity, allowing visitors to learn about the wine-making process and sample different varieties. This trend has not only boosted the local wine industry but also the tourism sector in Malta, as wine tourism has become a significant contributor to the country's economy.

Local special circumstances: Malta's unique geographical location and climate present both challenges and opportunities for the wine market. The hot and dry Mediterranean climate can be challenging for grape cultivation, making it necessary for local wine producers to carefully select grape varieties that are well-suited to the climate. However, this climate also contributes to the distinctive characteristics of Maltese wines, giving them a unique flavor profile that sets them apart from wines produced in other regions.

Underlying macroeconomic factors: The growing wine market in Malta can be attributed to several underlying macroeconomic factors. Firstly, Malta's strong tourism industry has played a significant role in driving the demand for wine. As the number of tourists visiting Malta continues to increase, so does the demand for wine, both in hotels and restaurants and for consumption by tourists themselves. Additionally, Malta's improving economy has led to an increase in disposable income, allowing consumers to spend more on luxury items such as wine. The country's membership in the European Union has also facilitated trade and distribution of wine, making it easier for local producers to access international markets. In conclusion, the Wine market in Malta is experiencing growth due to changing customer preferences, including a growing interest in wine as an everyday beverage and a demand for organic and natural wines. The market is also influenced by trends such as wine tourism and the unique geographical and climatic conditions of Malta. Underlying macroeconomic factors, such as the strong tourism industry and improving economy, have also contributed to the growth of the wine market in Malta.

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.