Alcoholic Drinks - Sri Lanka

The Alcoholic Drinks market in Sri Lanka has been experiencing significant growth in recent years.

Customer preferences: Sri Lankan consumers have shown a growing interest in alcoholic drinks, particularly in the urban areas. The younger population, in particular, has been driving this trend, with a preference for trendy and innovative beverages. There is also a growing demand for premium and imported alcoholic drinks, as consumers are becoming more willing to spend on higher quality products.

Trends in the market: One of the key trends in the Sri Lankan alcoholic drinks market is the increasing popularity of craft beers and spirits. Consumers are seeking unique and flavorful options, and craft beverages provide a niche and artisanal alternative to mainstream brands. This trend is also influenced by the growing craft beer and spirits movement worldwide. Another trend in the market is the rise of low and no-alcohol options. Health-conscious consumers are looking for alternatives that allow them to enjoy a social drink without the negative effects of alcohol. This trend is also driven by the increasing awareness of the harmful effects of excessive alcohol consumption.

Local special circumstances: Sri Lanka has a unique cultural and religious background that influences the alcoholic drinks market. The majority of the population follows Buddhism, which promotes abstinence from alcohol. However, there is also a significant minority of Muslims who do not consume alcohol due to religious beliefs. These cultural and religious factors shape the market and create a demand for non-alcoholic options.

Underlying macroeconomic factors: The growing economy and rising disposable incomes in Sri Lanka have contributed to the development of the alcoholic drinks market. As more people have the means to spend on luxury items, the demand for premium alcoholic beverages has increased. Additionally, the tourism industry in Sri Lanka has been booming in recent years, attracting a large number of international visitors who are interested in experiencing the local food and drink culture. This has further fueled the growth of the alcoholic drinks market. In conclusion, the Alcoholic Drinks market in Sri Lanka is experiencing growth due to changing customer preferences, such as a desire for craft beverages and low/no-alcohol options. Local special circumstances, such as cultural and religious factors, also play a role in shaping the market. The underlying macroeconomic factors, including a growing economy and rising disposable incomes, contribute to the 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.