Beer - Bahrain

The beer market in Bahrain has seen significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Customers in Bahrain have shown a growing interest in craft beer and premium beer options. This shift in preference can be attributed to a desire for unique and high-quality products, as well as a growing awareness of different beer styles and flavors. Additionally, there has been an increasing demand for low-alcohol and non-alcoholic beer options, reflecting a broader trend towards healthier lifestyles and moderation.

Trends in the market: One notable trend in the Bahraini beer market is the rise of microbreweries and craft beer. These smaller-scale breweries offer a wide range of unique and innovative beer flavors, catering to the evolving tastes of consumers. Craft beer has gained popularity among both locals and expatriates, with beer enthusiasts seeking out these specialty brews. This trend is in line with the global craft beer movement, which has seen significant growth in many countries. Another trend in the market is the increasing presence of international beer brands in Bahrain. As the country continues to develop and attract tourists and expatriates, there has been a growing demand for familiar beer brands from around the world. This trend is driven by the desire for variety and the availability of imported beers in restaurants, bars, and retail outlets.

Local special circumstances: Bahrain has a relatively small population compared to other countries in the region, which presents both opportunities and challenges for the beer market. On one hand, the smaller population size allows for more targeted marketing and personalized customer experiences. On the other hand, it also means that the market size is limited, requiring beer companies to carefully analyze and understand the preferences and behaviors of Bahraini consumers. Additionally, Bahrain has a significant expatriate population, which contributes to the diversity of customer preferences in the beer market. Expatriates from different countries bring their own beer-drinking traditions and preferences, further driving the demand for a wide range of beer options.

Underlying macroeconomic factors: Bahrain's strong economy and relatively high disposable income levels have contributed to the growth of the beer market. As consumers have more purchasing power, they are able to spend more on discretionary items such as beer. Additionally, Bahrain's status as a regional business hub and tourist destination has attracted a significant number of visitors, further boosting the demand for beer. Furthermore, the government's efforts to promote tourism and attract foreign investment have had a positive impact on the beer market. The development of entertainment and hospitality sectors, including hotels, restaurants, and bars, has created more opportunities for beer companies to expand their presence and reach a larger customer base. In conclusion, the beer market in Bahrain is experiencing growth due to changing customer preferences, including a growing interest in craft beer and premium options. The presence of international beer brands and the influence of the expatriate population further contribute to the diversity of the market. The underlying macroeconomic factors, such as a strong economy and government initiatives to promote tourism, have also played a significant role in the market's development.

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.