Wine - Turkey

Turkey, known for its rich history and vibrant culture, has seen a significant growth in its wine market in recent years. With a growing middle class and changing consumer preferences, the demand for wine has been on the rise.

Customer preferences: Turkish consumers have traditionally been more inclined towards consuming spirits and beer, but there has been a shift towards wine in recent years. This change can be attributed to several factors. Firstly, there is a growing awareness about the health benefits of wine, particularly red wine, which is believed to have antioxidant properties. Secondly, wine is seen as a sophisticated and trendy beverage, appealing to the younger generation who are looking for new experiences and flavors. Lastly, the increasing number of wine festivals and events in Turkey has helped to promote wine culture and educate consumers about different varieties and styles of wine.

Trends in the market: One of the key trends in the Turkish wine market is the rise of domestic wine production. Turkey has a long history of winemaking, dating back thousands of years, and it is now experiencing a resurgence. Local wineries are investing in modern technology and techniques to produce high-quality wines that can compete with international brands. This has led to an increase in the availability and variety of Turkish wines in the market. Another trend is the growing popularity of organic and natural wines. Turkish consumers, like their counterparts in other parts of the world, are becoming more conscious about the environmental impact of their choices. As a result, there is a growing demand for wines that are made from organic grapes and produced using sustainable practices.

Local special circumstances: Turkey has a unique geographical advantage when it comes to wine production. The country has a diverse climate and a wide range of microclimates, which allows for the cultivation of a variety of grape varieties. From the coastal regions of the Aegean and Mediterranean to the high-altitude vineyards of Anatolia, Turkey offers ideal conditions for grape cultivation. This diversity is reflected in the different styles and flavors of Turkish wines.

Underlying macroeconomic factors: The growth of the wine market in Turkey can also be attributed to the country's improving economic conditions. As the Turkish economy continues to develop, disposable incomes are increasing, allowing consumers to spend more on luxury goods and experiences. This includes the consumption of wine, which is often seen as a symbol of status and sophistication. In conclusion, the wine market in Turkey is experiencing a period of growth and transformation. Changing consumer preferences, the rise of domestic wine production, and the increasing popularity of organic and natural wines are all contributing to this development. With its unique geographical advantage and improving economic conditions, Turkey is well-positioned to further expand its wine market in the coming years.

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.