Spirits - Northern Europe

The Spirits market in Northern Europe has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances. Customer preferences in Northern Europe have shifted towards premium and craft spirits, as consumers increasingly seek unique and high-quality products. This trend can be attributed to a growing interest in artisanal and locally sourced products, as well as a desire for more authentic and personalized experiences. As a result, there has been a rise in the popularity of small-batch and craft spirits, which offer a wide range of flavors and styles to cater to individual tastes. Additionally, consumers are becoming more health-conscious and are seeking spirits with natural and organic ingredients, which has led to an increase in demand for organic and low-alcohol options in the market. Trends in the Spirits market in Northern Europe also reflect global market developments. For instance, there has been a growing demand for spirits-based cocktails and mixology, as consumers are increasingly experimenting with different flavors and ingredients. This trend has led to a rise in the popularity of cocktail bars and lounges, where consumers can enjoy a wide variety of innovative and creative cocktails. Furthermore, there has been a shift towards online and e-commerce channels for purchasing spirits, as consumers seek convenience and a wider selection of products. This has prompted many spirits producers to expand their online presence and offer direct-to-consumer sales options. Local special circumstances in Northern Europe have also influenced the development of the Spirits market. For example, the region has a rich tradition of distilling and producing spirits, with countries like Scotland and Ireland renowned for their whisky production. This heritage has contributed to the popularity of whisky in the region, with consumers appreciating the craftsmanship and history associated with the spirit. Similarly, countries like Sweden and Denmark have seen a rise in the production of craft gins, capitalizing on the growing trend for botanical-infused spirits. Additionally, the region's climate and natural resources, such as the abundance of clean and pure water sources, have created favorable conditions for the production of high-quality spirits. Underlying macroeconomic factors have also played a role in the development of the Spirits market in Northern Europe. The region has experienced stable economic growth, which has increased consumer purchasing power and disposable income. This has allowed consumers to trade up to premium and higher-priced spirits, driving market growth. Furthermore, the region has a well-established and regulated alcohol market, which has created a favorable business environment for spirits producers. Strict quality controls and regulations ensure the safety and integrity of the products, instilling confidence in consumers and supporting market growth. In conclusion, the Spirits market in Northern Europe is evolving to meet changing customer preferences, with a focus on premium and craft spirits. The region's rich distilling heritage, growing interest in artisanal products, and favorable economic conditions have contributed to the market's development. Additionally, global trends such as the rise of mixology and online sales have also influenced the market. Overall, the Spirits market in Northern Europe is poised for continued growth and innovation.

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.