Alcoholic Drinks - Armenia

Armenia, a country known for its rich history and cultural heritage, has seen significant developments in its Alcoholic Drinks market in recent years.

Customer preferences: Armenian consumers have traditionally had a strong preference for locally produced alcoholic beverages, such as brandy and wine. This is largely due to the country's long-standing tradition of winemaking and the high quality of its products. However, there has been a gradual shift in consumer preferences towards imported alcoholic drinks, particularly beer and spirits. This can be attributed to changing lifestyles and an increasing exposure to international brands.

Trends in the market: One of the notable trends in the Armenian Alcoholic Drinks market is the growing popularity of craft beer. Craft breweries have emerged in the country, offering a wide range of unique and flavorful beers that cater to the evolving tastes of consumers. This trend reflects a global movement towards craft beer, as consumers seek out more artisanal and locally produced beverages. Another trend in the market is the rising demand for premium spirits. Armenian consumers are increasingly willing to spend more on high-quality spirits, such as whisky and vodka, as they become more discerning and sophisticated in their tastes. This trend mirrors the global trend of premiumization, where consumers are willing to pay a premium for products that offer superior quality and craftsmanship.

Local special circumstances: Armenia's geographical location and climate provide favorable conditions for winemaking. The country has a long history of winemaking, dating back several millennia, and is renowned for its high-quality wines. This has led to a strong domestic wine industry, with a wide variety of local wines available in the market. The local wine industry is supported by government initiatives and investments, which aim to promote Armenian wines both domestically and internationally.

Underlying macroeconomic factors: Armenia has experienced steady economic growth in recent years, which has contributed to the development of the Alcoholic Drinks market. Rising disposable incomes and a growing middle class have increased consumer purchasing power, enabling them to spend more on alcoholic beverages. Additionally, the country's tourism industry has been expanding, attracting a growing number of international visitors who are interested in experiencing Armenian wines and spirits. In conclusion, the Alcoholic Drinks market in Armenia is evolving to meet the changing preferences of consumers. The shift towards imported beverages, the rise of craft beer, and the demand for premium spirits are all indicative of a market that is becoming more diverse and sophisticated. With its rich winemaking tradition and favorable economic conditions, Armenia is well-positioned to further develop its Alcoholic Drinks market in the coming years.

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.