Alcoholic Drinks - Bulgaria

The Alcoholic Drinks market in Bulgaria has been experiencing steady growth in recent years.

Customer preferences: Bulgarians have a long-standing tradition of consuming alcoholic beverages, with beer being the most popular choice among consumers. This can be attributed to the country's warm climate and the cultural significance of beer in social gatherings. Additionally, wine holds a special place in Bulgarian culture, with the country having a rich history of winemaking. The demand for spirits, such as vodka and rakia, is also significant, especially during festive occasions and celebrations.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Bulgaria is the increasing demand for craft beer. Consumers are becoming more interested in unique and locally-produced beers, which has led to the emergence of several craft breweries in the country. This trend can be attributed to the growing influence of global beer culture and the desire for more diverse and flavorful options. Another trend in the market is the rising popularity of premium and imported wines. Bulgarian consumers are becoming more discerning in their wine choices, seeking out high-quality products from renowned wine-producing regions around the world. This trend is driven by the increasing disposable income and changing preferences of consumers, who are willing to pay a premium for a superior wine-drinking experience.

Local special circumstances: Bulgaria's geographical location and climate provide favorable conditions for the production of alcoholic beverages, particularly wine. The country has a long history of winemaking, with several wine regions known for their unique grape varieties and terroir. This has positioned Bulgaria as a significant player in the global wine market, attracting both domestic and international consumers. Furthermore, the presence of traditional Bulgarian alcoholic beverages, such as rakia, adds a distinct flavor to the market. Rakia is a fruit brandy that is deeply rooted in Bulgarian culture and is often enjoyed as a digestif after a meal. This local specialty contributes to the diversity of the Alcoholic Drinks market in Bulgaria and appeals to consumers seeking an authentic Bulgarian experience.

Underlying macroeconomic factors: The steady growth of the Alcoholic Drinks market in Bulgaria can be attributed to several macroeconomic factors. The country has experienced a period of economic stability and growth, leading to an increase in disposable income and consumer spending. This has allowed consumers to indulge in their preferences for alcoholic beverages and explore new options. Additionally, Bulgaria's integration into the European Union has opened up opportunities for trade and investment in the Alcoholic Drinks sector. The country benefits from the free movement of goods within the EU, allowing for the import and export of a wide range of alcoholic beverages. This has led to a greater variety of products available in the market, catering to the diverse preferences of consumers. In conclusion, the Alcoholic Drinks market in Bulgaria is driven by customer preferences for beer, wine, and spirits, as well as the emerging trends of craft beer and premium wines. The local special circumstances, such as the country's winemaking heritage and traditional beverages, add a unique flavor to the market. The underlying macroeconomic factors, including economic stability and EU integration, contribute to the growth and development of the 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.