Beer - Sweden

The Beer market in Sweden has been experiencing significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: In Sweden, there has been a growing trend towards craft beer and premium beer options. Consumers are becoming more interested in trying new and unique flavors, and are willing to pay a premium for high-quality, locally produced beers. This shift in preferences has led to an increase in the number of microbreweries and craft beer bars across the country. Additionally, there has been a growing interest in low-alcohol and non-alcoholic beer options, as health and wellness trends continue to influence consumer choices.

Trends in the market: One of the key trends in the Swedish beer market is the rise of craft beer. Microbreweries have been popping up all over the country, offering a wide range of innovative and unique beer flavors. This trend has been driven by consumers' desire for locally produced and artisanal products. Craft beer has also gained popularity among younger consumers who are looking for more authentic and flavorful beer options. Another trend in the market is the increasing demand for low-alcohol and non-alcoholic beer. This can be attributed to a growing health-consciousness among consumers, as well as changing drinking habits. Many Swedes are now opting for lighter and less alcoholic beverages, and beer producers have responded by offering a variety of low-alcohol and non-alcoholic options.

Local special circumstances: Sweden has a unique alcohol retail system, known as Systembolaget, which has a monopoly on the sale of alcoholic beverages with an alcohol content higher than 3. 5%. This system has had a significant impact on the beer market in Sweden. The limited availability of beer in grocery stores and other retail outlets has led to a higher demand for beer in Systembolaget stores. This has also created opportunities for craft beer producers to showcase their products in these specialized stores.

Underlying macroeconomic factors: The Swedish economy has been relatively stable in recent years, with low unemployment rates and strong consumer spending. This has contributed to the growth of the beer market, as consumers have more disposable income to spend on leisure activities, including dining out and trying new beer options. Additionally, the government's efforts to promote local production and support small businesses have also played a role in the growth of the craft beer industry in Sweden.

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.