Spirits - Cyprus

The Spirits market in Cyprus has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in Cyprus have shifted towards premium and craft spirits, as consumers become more interested in unique and high-quality products. This trend is in line with global market trends, where consumers are seeking out artisanal and small-batch spirits that offer a more personalized and authentic experience. Additionally, there is a growing interest in spirits that are locally produced, as consumers are increasingly looking to support local businesses and embrace their national identity. In terms of trends in the market, there has been a rise in the popularity of gin in Cyprus. This can be attributed to the global gin renaissance, where the spirit has experienced a resurgence in popularity due to its versatility and wide range of flavor profiles. In Cyprus, gin has become particularly popular among younger consumers who are drawn to its botanical-infused taste and the opportunity to experiment with different mixers and garnishes. This trend is also reflected in the increasing number of craft gin distilleries that have emerged in the country, offering unique and locally-produced gin options. Another trend in the Spirits market in Cyprus is the growing demand for premium and aged spirits, such as whisky and rum. This can be attributed to a combination of factors, including an increasing disposable income among consumers and a growing appreciation for the craftsmanship and complexity of these spirits. As consumers become more knowledgeable about spirits, they are willing to invest in higher-quality products that offer a more refined drinking experience. This trend is also driven by the rise of cocktail culture in Cyprus, as consumers seek out spirits that can be used to create sophisticated and well-crafted cocktails. In terms of local special circumstances, Cyprus has a strong tradition of winemaking, which has influenced the development of the Spirits market. The country's long history of wine production has created a culture of appreciation for alcoholic beverages, and this has extended to spirits as well. Additionally, the tourism industry in Cyprus plays a significant role in driving the demand for spirits, as visitors to the country often seek out local products and experiences. Underlying macroeconomic factors also contribute to the growth of the Spirits market in Cyprus. The country has experienced a period of economic stability and growth, which has led to an increase in disposable income among consumers. This has allowed consumers to indulge in premium and higher-priced spirits, driving the demand for these products. Additionally, the government's efforts to promote the local food and beverage industry have also had a positive impact on the Spirits market, as it encourages consumers to support local businesses and products. Overall, the Spirits market in Cyprus is experiencing growth due to changing customer preferences, including a shift towards premium and craft spirits, as well as the rising popularity of gin and aged spirits. Local special circumstances, such as the country's tradition of winemaking and the influence of the tourism industry, further contribute to the development of the market. The underlying macroeconomic factors, including economic stability and government support, also play a role in driving the growth 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.