Beer - Armenia

The Beer market in Armenia has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends in the market, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Armenian consumers have shown a growing preference for beer over other alcoholic beverages. This can be attributed to several factors, including the affordability and accessibility of beer, its refreshing taste, and its social appeal. Additionally, the younger generation in Armenia is increasingly embracing Western drinking culture, which includes the consumption of beer.

Trends in the market: One of the key trends in the Armenian beer market is the rise of craft beer. Craft breweries have gained popularity among consumers who are looking for unique and high-quality beer options. These breweries often offer a wide variety of flavors and styles, appealing to the adventurous and discerning beer drinkers. This trend mirrors the global craft beer movement, which has seen exponential growth in recent years. Another trend in the Armenian beer market is the increasing demand for low-alcohol and non-alcoholic beer. Health-conscious consumers are seeking alternatives to traditional beer that offer lower calorie content and reduced alcohol levels. This trend is in line with the growing global trend of moderation and wellness, as consumers become more conscious of their alcohol consumption and overall health.

Local special circumstances: Armenia's beer market is influenced by its cultural and social norms. The country has a strong beer-drinking culture, with beer being a popular choice for social gatherings and celebrations. This cultural preference for beer has contributed to the steady growth of the market. Additionally, the local cuisine and food culture in Armenia often pair well with beer, further driving its consumption.

Underlying macroeconomic factors: Armenia's growing economy and increasing disposable income have played a significant role in the development of the beer market. As the country's economy continues to grow, consumers have more purchasing power, allowing them to indulge in discretionary spending, including the consumption of beer. Moreover, the tourism industry in Armenia has been experiencing a boom in recent years, attracting both domestic and international visitors. This influx of tourists has contributed to the growth of the beer market, as tourists often seek to experience the local food and beverage offerings. In conclusion, the Beer market in Armenia is experiencing growth due to changing customer preferences, emerging trends such as craft beer and low-alcohol options, local cultural norms, and the country's growing economy and tourism industry. These factors combined have created a favorable environment for the beer market to thrive in Armenia.

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.