Wine - Czechia

The Wine market in Czechia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and favorable local circumstances.

Customer preferences: Czech consumers have shown a growing interest in wine, with an increasing number of people incorporating it into their daily lives. Wine is no longer seen as a luxury item reserved for special occasions but has become a popular choice for casual consumption. This shift in consumer preferences can be attributed to a combination of factors, including the influence of global wine trends, a growing appreciation for quality and variety, and a desire for healthier lifestyle choices.

Trends in the market: One of the key trends in the Czech wine market is the growing demand for organic and natural wines. Consumers are increasingly seeking wines that are produced using sustainable farming practices and minimal intervention in the winemaking process. This trend aligns with the broader global movement towards organic and natural products, driven by concerns for the environment and personal health. As a result, winemakers in Czechia are focusing on producing wines that are organic, biodynamic, or made with minimal use of additives. Another trend in the Czech wine market is the rising popularity of local and indigenous grape varieties. Czechia has a long history of winemaking, and local grape varieties such as Grüner Veltliner, Riesling, and St. Laurent are gaining recognition and appreciation among consumers. This trend reflects a growing interest in exploring and supporting local products, as well as a desire for unique and authentic wine experiences.

Local special circumstances: Czechia's wine market is also influenced by its unique geographical and climatic conditions. The country's wine regions, such as Moravia and Bohemia, offer diverse terroirs and microclimates that are well-suited for wine production. The combination of fertile soils, ample sunshine, and cool temperatures creates favorable conditions for growing a wide range of grape varieties. Additionally, the country's rich winemaking heritage and traditions contribute to the overall appeal of Czech wines.

Underlying macroeconomic factors: The growth of the wine market in Czechia is also supported by favorable macroeconomic factors. The country has experienced steady economic growth in recent years, leading to an increase in disposable incomes and consumer spending power. This has allowed more consumers to afford and appreciate higher-quality wines. Furthermore, the tourism industry in Czechia has been thriving, attracting both domestic and international visitors who are interested in exploring the country's wine regions and experiencing its wine culture. This influx of tourists has contributed to the growth of wine consumption and the development of wine-related businesses, such as wine tours and tastings. In conclusion, the Wine market in Czechia is experiencing growth due to changing customer preferences, emerging trends such as organic and local wines, favorable local circumstances such as diverse terroirs, and underlying macroeconomic factors such as economic growth and tourism. These factors have created a favorable environment for the development and expansion of the wine market in Czechia.

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.