Beer - Kyrgyzstan

The Beer market in Kyrgyzstan has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, local special circumstances, and underlying macroeconomic factors.

Customer preferences: In Kyrgyzstan, there has been a shift in customer preferences towards beer consumption. Traditionally, vodka has been the preferred alcoholic beverage in the country. However, in recent years, there has been a growing interest in beer among consumers. This shift can be attributed to changing lifestyles, increasing urbanization, and a younger population that is more open to trying new alcoholic beverages.

Trends in the market: One of the key trends in the beer market in Kyrgyzstan is the rise of craft beer. Craft beer has gained popularity among consumers who are looking for unique and high-quality beer options. This trend is in line with global market trends, where craft beer has been experiencing significant growth. Craft breweries in Kyrgyzstan are focusing on creating innovative flavors and styles to cater to the evolving tastes of consumers. Another trend in the market is the increasing demand for low-alcohol and non-alcoholic beer. Health-conscious consumers are opting for lighter beer options that have lower alcohol content or are completely alcohol-free. This trend is driven by a growing awareness of the negative health effects of excessive alcohol consumption and a desire to lead a healthier lifestyle.

Local special circumstances: Kyrgyzstan is a landlocked country in Central Asia with a rich brewing tradition. The country has a favorable climate for growing barley, which is one of the main ingredients in beer production. This local advantage has contributed to the development of a strong beer industry in Kyrgyzstan. Furthermore, Kyrgyzstan has a vibrant tourism industry, with a large number of visitors coming from neighboring countries and beyond. This has created a demand for locally-produced beer, as tourists often seek to experience the local culture and taste authentic beverages. The beer market in Kyrgyzstan has responded to this demand by offering a variety of beer brands that cater to different tastes and preferences.

Underlying macroeconomic factors: The economic growth and stability in Kyrgyzstan have played a significant role in the development of the beer market. As the country's economy continues to grow, disposable incomes have increased, allowing consumers to spend more on discretionary items such as beer. This has led to a higher demand for beer and has created opportunities for both domestic and international beer brands to expand their presence in the market. In conclusion, the Beer market in Kyrgyzstan is experiencing growth due to changing customer preferences, emerging trends such as craft beer and low-alcohol options, local special circumstances such as a favorable climate for barley production and a thriving tourism industry, and underlying macroeconomic factors such as economic growth and increasing disposable incomes. The market is expected to continue evolving as consumers seek new and unique beer experiences and as the country's economy continues to develop.

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.