Spirits - Sweden

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

Customer preferences: Swedish consumers have shown a growing interest in premium and craft spirits, seeking unique and high-quality products. This trend can be attributed to an increasing emphasis on quality and authenticity, as well as a desire for more personalized and experiential consumption. Consumers are willing to pay a premium for spirits that are locally produced, sustainable, and have a distinct flavor profile. There is also a rising demand for spirits with lower alcohol content, as health and wellness concerns become more prevalent.

Trends in the market: One of the key trends in the Swedish Spirits market is the rise of craft distilleries. These smaller, independent producers are capitalizing on the demand for unique and artisanal spirits. Craft distilleries often focus on using locally sourced ingredients and traditional production methods, which appeals to consumers looking for authenticity and a connection to the local culture. This trend has led to a diversification of the spirits market, with a wide range of innovative and niche products now available. Another trend in the market is the growing popularity of flavored spirits. Swedish consumers are increasingly interested in spirits that offer unique and exciting flavor profiles, such as fruit-infused vodkas or botanical gins. This trend is driven by the desire for new taste experiences and the influence of mixology culture, as consumers experiment with creating their own cocktails at home.

Local special circumstances: Sweden has a strong tradition of alcohol consumption, with spirits playing a significant role in social and cultural gatherings. However, the Swedish government has implemented strict regulations on alcohol sales and advertising, including high taxes and a state monopoly on retail sales. These regulations have created a unique market environment, with consumers having limited access to spirits and higher prices compared to other countries. Despite these challenges, the spirits market in Sweden continues to thrive, driven by consumer demand for premium and unique products.

Underlying macroeconomic factors: The Swedish economy has been performing well in recent years, with strong GDP growth and low unemployment rates. This has contributed to increased consumer spending power, allowing consumers to indulge in higher-priced spirits and premium products. Additionally, Sweden has a well-established welfare system and high standards of living, which have created a favorable environment for the spirits market. The country's strong focus on sustainability and environmental responsibility has also influenced consumer preferences, with a growing demand for spirits produced using organic and locally sourced ingredients.

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.