Wine - Cyprus

The Wine market in Cyprus has been experiencing steady growth in recent years, driven by changing consumer preferences, emerging trends, and local special circumstances.

Customer preferences: In Cyprus, there has been a shift in customer preferences towards premium and high-quality wines. Consumers are becoming more knowledgeable about different grape varieties, production methods, and wine regions. They are willing to pay a higher price for wines that offer unique flavors and a superior drinking experience. Additionally, there is a growing interest in organic and biodynamic wines, as consumers become more conscious of their health and the environment.

Trends in the market: One of the notable trends in the wine market in Cyprus is the increasing popularity of indigenous grape varieties. Cyprus has a rich winemaking history and is home to unique grape varieties such as Xynisteri and Maratheftiko. These indigenous grapes are gaining recognition both domestically and internationally, as they offer distinct flavors and showcase the terroir of the region. Winemakers are focusing on producing wines that highlight the characteristics of these local grapes, attracting wine enthusiasts who seek authenticity and a sense of place in their wines. Another trend in the market is the rise of wine tourism. Cyprus has a picturesque landscape and a long tradition of winemaking, making it an attractive destination for wine lovers. Wineries across the country are opening their doors to visitors, offering tours, tastings, and even accommodation facilities. Wine tourism not only provides a unique experience for visitors but also contributes to the growth of the wine industry by generating additional revenue and creating brand awareness.

Local special circumstances: Cyprus has a unique climate and soil composition that is favorable for grape cultivation. The island enjoys a Mediterranean climate with long, hot summers and mild winters, providing ideal conditions for grape ripening. The volcanic soil, especially in the Troodos Mountains, adds minerality and complexity to the wines. These local special circumstances contribute to the production of high-quality wines with a distinct character, attracting both domestic and international consumers.

Underlying macroeconomic factors: The wine market in Cyprus is also influenced by macroeconomic factors. The country's improving economic conditions and rising disposable incomes have led to an increase in wine consumption. As the standard of living improves, consumers are willing to spend more on luxury goods, including premium wines. Furthermore, the growing popularity of wine as a social and cultural beverage has contributed to the overall growth of the market. In conclusion, the Wine market in Cyprus is experiencing growth due to changing consumer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The shift towards premium and high-quality wines, the focus on indigenous grape varieties, the rise of wine tourism, and favorable climate and soil conditions are all contributing to the development of the wine market in Cyprus.

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.