Beer - Estonia

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

Customer preferences: Estonian consumers have shown a growing preference for craft beers and specialty brews, as they seek unique and flavorful experiences. This trend aligns with the global shift towards premium and high-quality products in the beer industry. Additionally, there has been an increasing demand for low-alcohol and non-alcoholic beers, reflecting a growing health-consciousness among consumers.

Trends in the market: One of the key trends in the Estonian beer market is the rise of microbreweries and brewpubs. These small-scale producers offer a wide range of innovative and artisanal beers, catering to the demand for unique flavors and local products. This trend is in line with the global craft beer movement, which has gained popularity in many countries. Another trend in the market is the growing popularity of online beer sales. With the advancement of e-commerce platforms, consumers now have the convenience of purchasing their favorite beers online and having them delivered to their doorstep. This trend has been further accelerated by the COVID-19 pandemic, as more people turned to online shopping during lockdowns and social distancing measures.

Local special circumstances: Estonia has a rich brewing tradition, with a long history of beer production. This cultural heritage has contributed to the development of a vibrant beer scene in the country. Additionally, the relatively small size of the Estonian market allows for greater experimentation and niche products, which has fueled the growth of microbreweries and specialty beers.

Underlying macroeconomic factors: Estonia has experienced steady economic growth in recent years, which has positively impacted consumer spending power. As disposable incomes have increased, consumers are more willing to spend on premium and higher-priced beer products. Furthermore, the country's tourism sector has been growing, attracting international visitors who are interested in exploring the local beer culture and trying new brews. In conclusion, the Beer market in Estonia has seen significant growth due to changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors. The demand for craft beers, specialty brews, and online beer sales has been on the rise, while the country's rich brewing tradition and economic growth have provided a favorable environment for 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.