Alcoholic Drinks - Portugal

The Alcoholic Drinks market in Portugal has been experiencing steady growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Portuguese consumers have shown a growing preference for premium and craft alcoholic drinks, particularly in the beer and spirits categories. This can be attributed to a shift towards more sophisticated and high-quality products, as well as an increasing interest in supporting local producers. Additionally, there has been a rise in health-consciousness among consumers, leading to a growing demand for low-alcohol and alcohol-free alternatives.

Trends in the market: One of the notable trends in the Portuguese Alcoholic Drinks market is the increasing popularity of craft beer. This can be attributed to the rising consumer interest in unique and flavorful beers, as well as the growing number of microbreweries in the country. Craft beer has become a symbol of quality and innovation, appealing to a niche market of beer enthusiasts. Another trend in the market is the growing demand for premium spirits, such as gin and whiskey. Portuguese consumers are becoming more knowledgeable about different types of spirits and are willing to pay a premium for high-quality products. This trend can be attributed to the influence of international travel and exposure to different drinking cultures.

Local special circumstances: Portugal has a rich tradition of wine production, and this continues to be a significant driver of the Alcoholic Drinks market. Portuguese wines, particularly Port and Vinho Verde, are highly regarded both domestically and internationally. The country's favorable climate and diverse terroirs contribute to the production of unique and high-quality wines, attracting wine enthusiasts from around the world. Additionally, Portugal has a strong cultural tradition of socializing and enjoying alcoholic drinks, particularly during festivals and celebrations. This cultural aspect contributes to the overall demand for alcoholic beverages in the country.

Underlying macroeconomic factors: The Portuguese economy has been recovering from the financial crisis in recent years, leading to increased consumer spending power. This has positively impacted the Alcoholic Drinks market, as consumers are more willing to spend on premium and higher-priced products. Furthermore, the growth of the tourism industry in Portugal has also had a significant impact on the Alcoholic Drinks market. The country has become a popular tourist destination, attracting visitors from all over the world. This has created opportunities for the local alcoholic drinks industry, as tourists often seek to try and purchase local products during their stay. In conclusion, the Alcoholic Drinks market in Portugal is experiencing growth due to changing customer preferences, such as a preference for premium and craft products, as well as the country's rich wine tradition and cultural aspects. The recovering economy and the growth of the tourism industry are also contributing factors to the market's development.

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.