Spirits - Serbia

The Spirits market in Serbia has been experiencing significant growth in recent years.

Customer preferences: Serbian consumers have shown a growing interest in premium and craft spirits. This shift in preferences can be attributed to several factors. Firstly, the increasing disposable income of the middle class has allowed consumers to trade up to higher quality products. Secondly, there has been a growing trend towards experiential consumption, with consumers seeking unique and artisanal products that offer a sense of authenticity. Finally, the rise of cocktail culture has also contributed to the demand for premium spirits, as consumers look to recreate their favorite drinks at home.

Trends in the market: One of the key trends in the Serbian Spirits market is the growing popularity of local spirits. Serbian consumers are increasingly interested in supporting local producers and are willing to pay a premium for domestically produced spirits. This trend can be attributed to a desire for authenticity and a sense of national pride. Local spirits such as rakija, a traditional Serbian fruit brandy, have seen a resurgence in popularity, with consumers appreciating the craftsmanship and heritage associated with these products. Another trend in the market is the increasing demand for flavored spirits. Flavored vodkas and liqueurs have gained popularity among Serbian consumers, who are looking for new and exciting flavors to enhance their drinking experience. This trend can be attributed to the growing influence of international trends and the desire for variety and innovation.

Local special circumstances: One of the unique aspects of the Serbian Spirits market is the strong tradition of homemade spirits. Many Serbian households have a long-standing tradition of producing their own rakija or other fruit brandies. This tradition has created a strong culture of appreciation for spirits and has contributed to the demand for premium and craft products. Additionally, the homemade spirits market provides opportunities for small-scale producers to enter the market and cater to niche consumer segments.

Underlying macroeconomic factors: The growth of the Spirits market in Serbia can be attributed to several underlying macroeconomic factors. Firstly, the Serbian economy has been growing steadily in recent years, with rising incomes and improving living standards. This has led to increased consumer spending power and a willingness to trade up to higher quality products. Secondly, the tourism industry in Serbia has been experiencing significant growth, with an increasing number of international visitors. This has created a demand for locally produced spirits and has contributed to the growth of the market. Finally, the Serbian government has implemented policies to support the growth of the spirits industry. This includes measures to reduce excise taxes on spirits, making them more affordable for consumers. These policies have created a favorable business environment and have encouraged investment in the industry. In conclusion, the Spirits market in Serbia is experiencing growth due to changing customer preferences, including a growing interest in premium and craft spirits, as well as the popularity of local and flavored spirits. The strong tradition of homemade spirits and the underlying macroeconomic factors, such as the growing economy and tourism industry, have also contributed to the market's growth.

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.