Spirits - Denmark

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

Customer preferences: Danish consumers have shown a growing interest in premium spirits, particularly in the whisky and gin categories. They are increasingly looking for high-quality products that offer unique flavors and experiences. This trend is driven by a desire for authenticity and craftsmanship, as well as a growing appreciation for the art of mixology. Consumers are willing to pay a premium for spirits that are made with high-quality ingredients and produced using traditional methods.

Trends in the market: One of the key trends in the Danish spirits market is the rise of craft distilleries. These small-scale producers are gaining popularity among consumers who are seeking locally-made and artisanal spirits. Craft distilleries often focus on using locally-sourced ingredients and traditional production methods, which appeals to consumers looking for unique and authentic products. This trend has led to a diversification of the spirits market, with a wider range of products available to consumers. Another trend in the Danish spirits market is the increasing popularity of flavored spirits. Flavored vodkas, rums, and gins have become particularly popular among younger consumers who are looking for innovative and exciting flavors. This trend is driven by the growing popularity of cocktails and mixology, as well as the desire for new and unique taste experiences.

Local special circumstances: Denmark has a strong tradition of drinking aquavit, a traditional Scandinavian spirit flavored with herbs and spices. Aquavit is often enjoyed during festive occasions and is an important part of Danish culture. While aquavit remains popular, there has been a shift towards other spirits, such as whisky and gin, in recent years. This change in consumer preferences has created opportunities for both domestic and international spirits producers to enter the Danish market.

Underlying macroeconomic factors: The growth of the spirits market in Denmark can be attributed to several macroeconomic factors. Firstly, Denmark has a strong economy with high levels of disposable income. This allows consumers to spend more on premium and high-quality spirits. Additionally, the Danish government has implemented policies to promote the production and consumption of local spirits, which has contributed to the growth of the market. Finally, the increasing popularity of cocktails and mixology has created a demand for a wider variety of spirits, driving growth in the market. In conclusion, the Spirits market in Denmark is experiencing growth due to a shift in consumer preferences towards premium and craft spirits, as well as the popularity of flavored spirits. The market is also influenced by local special circumstances, such as the traditional consumption of aquavit. The underlying macroeconomic factors, including a strong economy and government policies, have also contributed to the growth of 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.