Wine

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

Customer preferences: Norwegian consumers have shown a growing interest in wine, with an increasing number of people incorporating it into their regular consumption habits. Wine is no longer seen as a luxury item, but rather as a beverage that can be enjoyed on a daily basis. This shift in consumer preferences has led to an increase in the demand for a wide variety of wines, including both red and white wines from different regions around the world.

Trends in the market: One of the key trends in the Norwegian wine market is the growing popularity of organic and sustainable wines. Consumers are becoming more conscious of the environmental impact of their consumption choices and are actively seeking out wines that are produced using sustainable practices. This trend is also influenced by the global movement towards sustainability and the increasing awareness of climate change. Another trend in the market is the rise of online wine sales. With the advancement of technology and the convenience it offers, more and more Norwegians are opting to purchase wine online. This allows consumers to access a wider range of wines and compare prices more easily. Online platforms also provide customers with detailed information about the wines, such as tasting notes and food pairing suggestions, which further enhances the overall shopping experience.

Local special circumstances: Norway's strict regulations and high taxes on alcohol have had a significant impact on the wine market. The government controls the sale of alcoholic beverages through a state-owned monopoly, Vinmonopolet, which is the only retailer authorized to sell wines with an alcohol content above 4. 7%. This monopoly system has created a unique market environment, with limited distribution channels and higher prices compared to other countries. However, despite these challenges, the wine market in Norway has continued to grow steadily.

Underlying macroeconomic factors: The strong economy and high disposable income levels in Norway have contributed to the growth of the wine market. As people have more money to spend, they are willing to invest in higher quality wines and explore different options. Additionally, the trend of eating out at restaurants and cafes has also increased, with many establishments offering an extensive wine list to cater to customer preferences. This has further fueled the demand for wine in the country. In conclusion, the wine market in Norway is experiencing growth due to changing customer preferences, including a growing interest in organic and sustainable wines, as well as the rise of online wine sales. The local special circumstances, such as strict regulations and high taxes, have created a unique market environment. The underlying macroeconomic factors, such as a strong economy and high disposable income levels, have also contributed to the growth of the wine market in Norway.

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.