Alcoholic Drinks - Bhutan

The Alcoholic Drinks market in Bhutan is experiencing significant growth and development in recent years.

Customer preferences: Bhutanese consumers have shown a growing preference for alcoholic drinks, particularly beer and spirits. This can be attributed to changing lifestyles and increasing disposable incomes. As more people have access to higher incomes, they are willing to spend more on leisure activities, including the consumption of alcoholic beverages. Additionally, the younger generation in Bhutan is becoming more open to experimenting with different types of alcoholic drinks, leading to a diversification of consumer preferences in the market.

Trends in the market: One of the key trends in the Alcoholic Drinks market in Bhutan is the increasing popularity of craft beers. Craft beers are gaining traction among consumers who are looking for unique and high-quality products. The demand for craft beers is driven by consumers' desire for variety and their willingness to pay a premium for artisanal and locally-produced beverages. This trend is aligned with the global craft beer movement, which has seen significant growth in recent years. Another trend in the market is the rising demand for premium spirits. Bhutanese consumers are increasingly seeking out premium and imported spirits, such as whiskey and vodka. This can be attributed to a growing appreciation for international brands and the perception that premium spirits offer superior quality and taste. The demand for premium spirits is also driven by the rise in cocktail culture, as more consumers are experimenting with mixing their own drinks at home or at bars.

Local special circumstances: Bhutan has a unique drinking culture that is deeply rooted in tradition and social customs. Alcohol plays a significant role in Bhutanese social gatherings and celebrations, such as weddings and religious festivals. The consumption of alcohol is seen as a way to foster social connections and build relationships. This cultural context contributes to the overall demand for alcoholic drinks in Bhutan.

Underlying macroeconomic factors: The growth of the Alcoholic Drinks market in Bhutan can be attributed to several macroeconomic factors. Firstly, Bhutan has experienced steady economic growth in recent years, which has resulted in an increase in disposable incomes. As people have more money to spend, they are able to allocate a greater portion of their budget to discretionary items such as alcoholic beverages. Secondly, Bhutan has witnessed a rise in tourism, with an increasing number of international visitors coming to explore the country's natural beauty and cultural heritage. This influx of tourists has created a demand for alcoholic drinks, both in hotels and restaurants, as well as in duty-free shops. The tourism sector has become an important driver of the Alcoholic Drinks market in Bhutan. In conclusion, the Alcoholic Drinks market in Bhutan is experiencing growth and development due to changing customer preferences, including a growing demand for craft beers and premium spirits. The unique drinking culture and social customs in Bhutan also contribute to the overall demand for alcoholic beverages. Additionally, underlying macroeconomic factors such as economic growth and increased tourism have further fueled the market's expansion.

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.