Beer - Sri Lanka

The Beer market in Sri Lanka is experiencing significant growth and development in recent years.

Customer preferences: Sri Lankan consumers have shown a growing preference for beer as their beverage of choice. With the rising popularity of social gatherings and nightlife, beer has become a popular choice among young adults and urban dwellers. The convenience and affordability of beer compared to other alcoholic beverages have also contributed to its increasing demand. Additionally, the influence of Western culture and the growing middle-class population have further fueled the demand for beer in Sri Lanka.

Trends in the market: One of the key trends in the Sri Lankan beer market is the increasing popularity of craft beer. Craft breweries are gaining traction among consumers who seek unique and flavorful beer options. These breweries often produce small batches of beer using traditional brewing methods and locally sourced ingredients, appealing to consumers looking for a more authentic and artisanal experience. The trend towards craft beer reflects a shift in consumer preferences towards quality and diversity. Another notable trend in the Sri Lankan beer market is the rise of low-alcohol and non-alcoholic beers. Health-conscious consumers are opting for these alternatives as they offer a lighter and less intoxicating option while still providing the taste and experience of beer. This trend is also driven by changing social norms and an increasing focus on responsible drinking.

Local special circumstances: Sri Lanka has a unique cultural and religious landscape that influences the beer market. The majority of the population practices Buddhism, which promotes a moderate and balanced approach to alcohol consumption. As a result, there are restrictions on the sale and consumption of alcohol during certain religious holidays and events. These regulations can impact the availability and consumption patterns of beer in the country.

Underlying macroeconomic factors: The Sri Lankan economy has been experiencing steady growth in recent years, with an expanding middle class and increasing disposable income. This economic growth has contributed to the rising demand for beer as consumers have more purchasing power to spend on leisure activities and indulgences. Additionally, the growth of tourism in Sri Lanka has also had a positive impact on the beer market, as tourists often seek out local alcoholic beverages as part of their cultural experience. In conclusion, the Beer market in Sri Lanka is witnessing growth and development driven by changing customer preferences, including a growing preference for craft beer and low-alcohol alternatives. The unique cultural and religious landscape of Sri Lanka, along with the country's economic growth and increasing disposable income, are also contributing factors to the market's development.

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.