Spirits - Luxembourg

Luxembourg, a small country nestled in the heart of Europe, is known for its rich history, picturesque landscapes, and vibrant culture. But beneath its charming facade, the Spirits market in Luxembourg is experiencing a steady growth in recent years.

Customer preferences: Luxembourg has a diverse population with a wide range of tastes and preferences when it comes to spirits. While traditional spirits such as whisky and vodka remain popular choices, there is a growing demand for craft spirits and unique flavors. Consumers are increasingly seeking out locally produced spirits, as well as those from other countries that offer a distinct and authentic experience.

Trends in the market: One of the key trends in the Spirits market in Luxembourg is the rise of craft spirits. Small-scale distilleries are gaining popularity among consumers who appreciate the artistry and attention to detail that goes into producing these spirits. Craft spirits often have a unique flavor profile and are made using traditional methods, which appeals to those looking for something different from mass-produced spirits. Another trend in the market is the growing interest in premium and luxury spirits. As Luxembourg is known for its affluent population, there is a demand for high-end spirits that offer a premium experience. This trend is driven by consumers who are willing to pay a premium for spirits that are aged longer, made from rare ingredients, or produced by renowned distilleries.

Local special circumstances: Luxembourg's proximity to other European countries plays a significant role in shaping the Spirits market. The country's border with France, Belgium, and Germany allows for easy access to a wide variety of spirits from these neighboring countries. This has led to a diverse and competitive market, with consumers having a wide range of options to choose from. Additionally, Luxembourg has a thriving tourism industry, attracting visitors from all over the world. Tourists often seek out local spirits as souvenirs or to experience the flavors of the country. This presents an opportunity for both local and international spirits producers to tap into the tourist market and showcase their products.

Underlying macroeconomic factors: Luxembourg's strong economy and high disposable income levels contribute to the growth of the Spirits market. With a high standard of living and a population that is willing to spend on luxury goods, the demand for premium spirits is expected to continue to rise. Furthermore, the country's favorable tax policies and business-friendly environment make it an attractive destination for spirits producers. This has led to an increase in the number of distilleries and spirits-related businesses in Luxembourg, further fueling the growth of the market. In conclusion, the Spirits market in Luxembourg is experiencing a steady growth driven by customer preferences for craft spirits and premium offerings. The country's proximity to other European countries, thriving tourism industry, strong economy, and favorable business environment are all contributing factors to the development of the market. As consumer tastes continue to evolve and the demand for unique and high-quality spirits increases, the Spirits market in Luxembourg is poised for further growth in the coming years.

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.