Spirits - Portugal

The Spirits market in Portugal 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: Portuguese consumers have shown a growing preference for premium and craft spirits. They are increasingly seeking unique and high-quality products that offer a distinct flavor profile and a more personalized experience. This shift in consumer preferences has led to an increase in the demand for premium spirits such as aged whiskies, artisanal gins, and small-batch rums. Additionally, there is a growing interest in locally produced spirits, as consumers value products that are made with locally sourced ingredients and reflect the country's cultural heritage.

Trends in the market: One of the key trends in the Spirits market in Portugal is the rise of gin. Gin has become increasingly popular among Portuguese consumers, with a wide range of craft and artisanal gin brands entering the market. This trend is driven by the versatility of gin as a base spirit, allowing for the creation of unique flavor combinations and botanical blends. Additionally, the rise of gin bars and cocktail culture has further fueled the demand for gin in Portugal. Another trend in the market is the growing popularity of whisky. Portuguese consumers are becoming more knowledgeable about whisky and are willing to experiment with different styles and flavors. This trend is driven by an increasing interest in whisky tasting events, whisky tourism, and the availability of a wide range of whisky brands and expressions in the market.

Local special circumstances: Portugal has a rich cultural heritage when it comes to the production of spirits, particularly in the production of fortified wines such as Port and Madeira. These traditional spirits have a long-standing reputation both domestically and internationally, and their production and consumption continue to be an integral part of Portuguese culture. This heritage and expertise in the production of fortified wines have also contributed to the growth of the spirits market in Portugal, as consumers are more receptive to trying other types of spirits produced in the country.

Underlying macroeconomic factors: The growth of the Spirits market in Portugal can also be attributed to underlying macroeconomic factors. Portugal has experienced a period of economic recovery in recent years, with increasing disposable incomes and improved consumer confidence. This has led to an increase in consumer spending on luxury and premium products, including spirits. Furthermore, the growth of the tourism industry in Portugal has also contributed to the demand for spirits, as tourists seek to explore and experience the local culture and traditions, including the consumption of traditional spirits. In conclusion, the Spirits market in Portugal is experiencing growth due to changing customer preferences, emerging trends such as the rise of gin and whisky, local special circumstances related to the country's cultural heritage, and underlying macroeconomic factors such as economic recovery and the growth of the tourism industry.

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.