Alcoholic Drinks - Finland

The Alcoholic Drinks market in Finland has seen significant developments and trends in recent years, driven by changing customer preferences, local special circumstances, and underlying macroeconomic factors.

Customer preferences: Finland has a strong drinking culture, with alcohol consumption being an important part of social gatherings and celebrations. However, there has been a noticeable shift in customer preferences towards healthier and more premium alcoholic drinks. Consumers are increasingly seeking out low-alcohol and non-alcoholic options, as well as craft beers and premium spirits. This trend is driven by a growing awareness of health and wellness, as well as a desire for unique and high-quality products.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Finland is the rise of craft beer. Craft breweries have gained popularity in recent years, offering a wide variety of unique and locally-produced beers. This trend is driven by a demand for artisanal and authentic products, as well as a desire to support local businesses. Craft beer festivals and events have also become increasingly popular, providing a platform for breweries to showcase their products and engage with consumers. Another trend in the market is the growing popularity of premium spirits, such as gin and whiskey. Finnish consumers are becoming more knowledgeable about different types of spirits and are willing to spend more on high-quality products. This trend is driven by a desire for unique and sophisticated drinking experiences, as well as a growing cocktail culture. Craft distilleries have also emerged, producing small-batch spirits with a focus on local ingredients and traditional production methods.

Local special circumstances: Finland has a state monopoly on the retail sale of alcoholic drinks, which has a significant impact on the market. The state-owned retail company, Alko, controls the distribution and sale of all alcoholic beverages with an alcohol content above 5. 5%. This monopoly ensures strict regulations and control over the sale of alcohol, including limited opening hours and age restrictions. While this system may limit the availability and accessibility of alcoholic drinks, it also provides a level of quality control and consumer protection.

Underlying macroeconomic factors: The Alcoholic Drinks market in Finland is influenced by various macroeconomic factors, including disposable income levels and consumer confidence. As the Finnish economy has been relatively stable in recent years, with moderate economic growth and low unemployment rates, consumers have more purchasing power and are willing to spend on premium and higher-priced alcoholic drinks. Additionally, the government's efforts to promote domestic tourism and attract international visitors have also contributed to the growth of the market, as tourists often indulge in local alcoholic beverages as part of their travel experience. In conclusion, the Alcoholic Drinks market in Finland is evolving to cater to changing customer preferences for healthier and premium options. The rise of craft beer and premium spirits reflects a growing demand for unique and high-quality products. The state monopoly on alcohol sales and the stable macroeconomic conditions in Finland also play a significant role in shaping the market.

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.