Alcoholic Drinks - Europe

The Alcoholic Drinks market in Europe is experiencing significant growth and development.

Customer preferences: Europeans have a long-standing tradition of consuming alcoholic beverages, and this cultural preference continues to drive the demand for alcoholic drinks in the region. Wine is particularly popular in countries such as France, Italy, and Spain, where it is deeply ingrained in the local culture and cuisine. Beer is also a favorite choice among Europeans, with countries like Germany and the Czech Republic known for their strong beer-drinking traditions. Additionally, spirits such as vodka, whiskey, and gin are gaining popularity among younger consumers, who are increasingly seeking unique and artisanal offerings.

Trends in the market: One of the key trends in the European Alcoholic Drinks market is the growing demand for premium and craft products. Consumers are becoming more discerning and are willing to pay a premium for high-quality and unique beverages. This trend is driven by a desire for authenticity, craftsmanship, and a more personalized drinking experience. As a result, craft breweries, distilleries, and wineries are flourishing across the region, offering a wide range of innovative and artisanal alcoholic beverages. Another trend in the market is the rise of low and no-alcohol alternatives. Health-conscious consumers are increasingly seeking healthier options, and this has led to a surge in demand for low and no-alcohol beverages. This trend is particularly prominent among younger consumers who are more conscious of their alcohol intake and are looking for alternatives that allow them to socialize without the negative effects of excessive alcohol consumption. As a result, the market is seeing a proliferation of non-alcoholic beers, wines, and spirits that offer the taste and experience of traditional alcoholic drinks without the alcohol content.

Local special circumstances: Each country in Europe has its own unique drinking culture and preferences, which influence the development of the Alcoholic Drinks market. For example, in countries like France and Italy, wine is deeply ingrained in the local culture and is consumed regularly as part of meals and social gatherings. In contrast, countries like Germany and the UK have a strong beer-drinking tradition, with beer being a staple beverage in pubs and social events. These local special circumstances shape the demand for different types of alcoholic drinks and drive the growth of specific segments within the market.

Underlying macroeconomic factors: The Alcoholic Drinks market in Europe is influenced by various macroeconomic factors. Economic growth and rising disposable incomes play a significant role in driving the demand for premium and high-quality alcoholic beverages. As the economy improves, consumers are more willing to spend on luxury and indulgent products, including alcoholic drinks. Additionally, demographic factors such as population growth, urbanization, and changing lifestyles also impact the market. For example, the increasing urban population and the rise of young professionals in Europe have led to a greater demand for convenience and on-the-go alcoholic beverages. In conclusion, the Alcoholic Drinks market in Europe is experiencing growth and development driven by customer preferences for premium and craft products, the rise of low and no-alcohol alternatives, local drinking cultures and preferences, and underlying macroeconomic factors such as economic growth and changing demographics.

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.