Beer - Bulgaria

The Beer market in Bulgaria has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Bulgaria has a long-standing beer culture, with beer being a popular alcoholic beverage among the population. However, in recent years, there has been a shift in customer preferences towards craft beer and premium beer brands. Consumers are increasingly seeking out unique and high-quality beer options, leading to the rise of craft breweries and the introduction of a wider variety of beer styles in the market. This shift in customer preferences is driving the growth of the craft beer segment and premium beer brands in Bulgaria.

Trends in the market: One of the key trends in the Beer market in Bulgaria is the increasing popularity of craft beer. Craft breweries have been popping up across the country, offering consumers a wide range of innovative and unique beer flavors. This trend is driven by the growing demand for locally-produced and artisanal products, as well as the desire for more diverse and flavorful beer options. Craft beer is seen as a premium product, appealing to consumers who are willing to pay a higher price for a higher quality and more exclusive drinking experience. Another trend in the market is the growing interest in low-alcohol and non-alcoholic beer. Health-conscious consumers are seeking out healthier alternatives to traditional beer, and breweries are responding to this demand by introducing low-alcohol and non-alcoholic beer options. These products appeal to consumers who want to enjoy the taste of beer without the negative health effects of alcohol. The low-alcohol and non-alcoholic beer segment is expected to continue growing in Bulgaria as more consumers prioritize their health and wellness.

Local special circumstances: Bulgaria has a unique beer market due to its rich brewing history and cultural traditions. The country has a strong beer-drinking culture, with beer being consumed in social settings such as bars, restaurants, and outdoor festivals. This cultural tradition contributes to the overall demand for beer in Bulgaria. Additionally, the country has a strong tradition of brewing and a wide variety of local beer brands, which adds to the diversity and appeal of the market.

Underlying macroeconomic factors: The growth of the Beer market in Bulgaria is also influenced by underlying macroeconomic factors. The country's stable economic growth, rising disposable incomes, and increasing urbanization have contributed to the overall growth of the beer market. As consumers have more disposable income, they are able to spend more on premium and craft beer options. Furthermore, the growing urban population has led to an increase in the number of bars, restaurants, and entertainment venues, providing more opportunities for the sale and consumption of beer. In conclusion, the Beer market in Bulgaria is experiencing growth due to changing customer preferences, emerging trends such as the popularity of craft beer and low-alcohol options, local special circumstances including a strong beer-drinking culture and a wide variety of local beer brands, and underlying macroeconomic factors such as stable economic growth and rising disposable incomes. These factors are shaping the development of the market and driving the demand for beer in Bulgaria.

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.