Beer - Turkey

The Beer market in Turkey has been experiencing significant growth in recent years.

Customer preferences: Turkish consumers have shown a growing preference for beer over other alcoholic beverages. This shift in preference can be attributed to several factors. Firstly, beer is seen as a more socially acceptable drink compared to stronger alcoholic beverages such as spirits. It is often consumed in social gatherings and is considered a refreshing drink, especially during the hot summer months. Additionally, beer is perceived as a more affordable option compared to imported wines and spirits, making it a popular choice among price-conscious consumers.

Trends in the market: One of the key trends in the Turkish beer market is the increasing popularity of craft beer. Craft beer has gained a loyal following among consumers who appreciate its unique flavors and high-quality ingredients. This trend mirrors the global craft beer movement, where consumers are seeking out more diverse and artisanal beer options. As a result, there has been a surge in the number of microbreweries and craft beer bars in Turkey, offering a wide variety of locally brewed beers. Another trend in the market is the growing demand for low-alcohol and non-alcoholic beers. Health-conscious consumers are increasingly looking for alternatives to traditional alcoholic beverages. This trend is driven by a desire to lead a healthier lifestyle and reduce alcohol consumption. Non-alcoholic beers are also gaining popularity among Muslim consumers who choose to abstain from consuming alcohol for religious reasons.

Local special circumstances: One unique aspect of the Turkish beer market is the dominance of domestic beer brands. Turkish consumers have a strong preference for locally produced beers, which are often seen as more authentic and of higher quality. This preference for domestic brands has created a challenging environment for international beer companies looking to enter the Turkish market. However, some international brands have managed to gain a foothold by adapting their products to suit local tastes and preferences.

Underlying macroeconomic factors: The growth of the beer market in Turkey is also influenced by macroeconomic factors. Turkey has experienced steady economic growth in recent years, which has led to an increase in disposable income levels. This has allowed consumers to spend more on discretionary items such as alcoholic beverages. Additionally, the country's young and urban population is more open to experimenting with new products and brands, contributing to the growth of the beer market. In conclusion, the Beer market in Turkey is growing due to changing customer preferences, including a shift towards beer as a more socially acceptable and affordable alcoholic beverage. The market is also influenced by global trends such as the rise of craft beer and the demand for low-alcohol and non-alcoholic options. Local special circumstances, such as the preference for domestic beer brands, and underlying macroeconomic factors, such as economic growth and a young urban population, further contribute to the development of the market.

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.