Spirits - Bhutan

The Spirits market in Bhutan has been experiencing significant growth in recent years.

Customer preferences: Bhutanese consumers have shown a growing interest in premium spirits, particularly whisky and gin. This shift in preferences can be attributed to several factors. Firstly, Bhutan has seen an increase in disposable income, allowing consumers to indulge in higher-end products. Secondly, there has been a rise in the popularity of international spirits, with consumers seeking out unique and exotic flavors. Finally, the younger generation in Bhutan is becoming more adventurous in their drinking choices, opting for spirits that offer a different experience compared to traditional local beverages.

Trends in the market: One of the key trends in the Spirits market in Bhutan is the increasing demand for craft spirits. Consumers are drawn to the artisanal production methods and unique flavors offered by craft distilleries. This trend reflects a broader shift towards supporting local businesses and products. Additionally, there has been a growing interest in spirits that are made using traditional Bhutanese ingredients, such as local herbs and spices. This trend not only appeals to the sense of national pride but also provides a distinct flavor profile that sets Bhutanese spirits apart from their international counterparts.

Local special circumstances: Bhutan has a unique cultural heritage that plays a significant role in shaping the Spirits market. The country is known for its traditional alcoholic beverage called "ara," which is made from fermented rice or maize. Ara holds a special place in Bhutanese culture and is often consumed during religious ceremonies and social gatherings. While ara continues to be popular, there is a growing interest in exploring other spirits that offer a different taste experience. This desire for variety has contributed to the demand for international and craft spirits in Bhutan.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the development of the Spirits market in Bhutan. The country has experienced steady economic growth in recent years, leading to an increase in disposable income among consumers. This rise in purchasing power has allowed consumers to explore and experiment with different spirits. Additionally, Bhutan has seen a growth in tourism, with more international visitors coming to the country. This influx of tourists has created a demand for international spirits, as visitors seek to experience the local drinking culture while also enjoying familiar brands. The combination of economic growth and tourism has created a favorable environment for the Spirits market to thrive in Bhutan. In conclusion, the Spirits market in Bhutan is experiencing growth driven by changing customer preferences, including a shift towards premium and craft spirits. The market is also influenced by local special circumstances, such as the cultural significance of traditional beverages and the desire for variety. These trends are supported by underlying macroeconomic factors, including rising disposable income and increased tourism. As Bhutan continues to develop and evolve, it is likely that the Spirits market will continue to expand, offering consumers a wider range of choices and experiences.

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.