Wine - Sweden

The Wine market in Sweden has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Swedish consumers have shown an increasing interest in wine, with a growing demand for both domestic and imported varieties. This can be attributed to a shift in consumer preferences towards healthier and more sophisticated alcoholic beverages. Wine is seen as a more refined and elegant choice compared to other alcoholic drinks, such as beer or spirits. Additionally, the trend of wine pairing with food has gained popularity among Swedish consumers, further driving the demand for wine in the country.

Trends in the market: One of the key trends in the Swedish wine market is the rising popularity of organic and sustainable wines. Swedish consumers are becoming more conscious of the environmental and health impacts of their consumption choices, leading to a growing demand for wines produced using organic and sustainable practices. This trend is in line with the global movement towards more sustainable and eco-friendly products. Another trend in the market is the increasing preference for premium and high-quality wines. Swedish consumers are willing to pay a premium for wines that offer unique flavors, superior craftsmanship, and a sense of exclusivity. This trend is driven by the growing disposable income and changing lifestyles of Swedish consumers, who are increasingly looking for experiences and products that provide them with a sense of luxury and sophistication.

Local special circumstances: Sweden has a state-owned alcohol retail monopoly, known as Systembolaget, which controls the sale of alcoholic beverages in the country. This has a significant impact on the wine market, as all wine sales must go through Systembolaget's stores. This monopoly ensures that the market is regulated and controlled, with strict rules and regulations regarding the sale and distribution of alcoholic beverages. While this may create some barriers for wine producers and importers, it also provides a level playing field and ensures that all products meet certain quality standards.

Underlying macroeconomic factors: The growth of the wine market in Sweden is also influenced by underlying macroeconomic factors. The country has a stable economy with high disposable income levels, allowing consumers to indulge in premium and high-quality products like wine. Additionally, Sweden has a strong culture of dining out and socializing, which further drives the demand for wine in restaurants and bars. The increasing number of tourists visiting Sweden also contributes to the growth of the wine market, as they often seek out local wines as part of their cultural experience. In conclusion, the Wine market in Sweden is experiencing growth due to changing customer preferences towards healthier and more sophisticated alcoholic beverages, as well as the rising popularity of organic and sustainable wines. The increasing demand for premium and high-quality wines, driven by the growing disposable income and changing lifestyles of Swedish consumers, is also contributing to the market's growth. The local special circumstance of Systembolaget's alcohol retail monopoly and the underlying macroeconomic factors of a stable economy, high disposable income levels, and a strong culture of dining out and socializing further support the development of the wine market in Sweden.

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.