Executive Summary

Jul 2019
Economic stability underpins positive performance of alcoholic drinks in 2018

Azerbaijan’s economy stabilised in 2018 thanks to growth in oil revenues. This strengthened the national currency and allowed authorities to curb inflation, which had reached double digits in 2016 and 2017.

Regulatory reforms support growth in domestic production and imports

Imports of alcoholic drinks to Azerbaijan rose in 2018 despite the hike in excise taxes, while domestic production also increased during the year. In addition to economic improvements, growth in imports and domestic production was supported by reforms in the customs, turnover and accounting systems for alcoholic drinks, which helped to reduce illicit trade.

Investment in promotion of local brands continues to rise

2018 saw alcoholic drinks companies in Azerbaijan increase investment in the production and promotion of their brands, both at home and abroad. Members of the Azerbaijan Wine Producers and Exporters Association significantly expanded international distribution of their products, and increased the volume of exports to Central Asia, Ukraine, Belarus and the Baltic States.

Modern retailers gain ground at off-trade level as tourism boosts on-trade sales

Modern grocery retailers continued to gain ground at the expense of traditional channels in terms of off-trade distribution of alcoholic drinks in 2018. Volume share gains for the former were supported by the competitive pricing strategies and intensive promotional activities of modern chains, particularly supermarkets chains.

Moderate growth in alcoholic drinks consumption expected over the forecast period

Total alcoholic drinks sales in Azerbaijan are expected to grow moderately in volume and current value terms over the forecast period. In addition to economic recovery, consumption will be bolstered by improvements in product quality standards and the emergence of new players, which will encourage healthy competition.

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Alcoholic Drinks in Azerbaijan

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Overview

Discover the latest market trends and uncover sources of future market growth for the Alcoholic Drinks industry in Azerbaijan with research from Euromonitor's team of in-country analysts.

Find hidden opportunities in the most current research data available, understand competitive threats with our detailed market analysis, and plan your corporate strategy with our expert qualitative analysis and growth projections.

If you're in the Alcoholic Drinks industry in Azerbaijan, our research will save you time and money while empowering you to make informed, profitable decisions.

When you purchase this report, you also get the data and the content from these category reports in Azerbaijan for free:

The Alcoholic Drinks in Azerbaijan market research report includes:

  • Analysis of key supply-side and demand trends
  • Detailed segmentation of international and local products
  • Historic volumes and values, company and brand market shares
  • Five year forecasts of market trends and market growth
  • Robust and transparent market research methodology, conducted in-country

Our market research reports answer questions such as:

  • What is the market size of Alcoholic Drinks in Azerbaijan?
  • What are the major brands in Azerbaijan?
  • Have there been any alcoholic drinks legislative changes over the past 12 months?
  • How is the alcoholic drinks industry affected by the recession?
  • What is consumed more; beer, wine or spirits?
  • What have been the key trends seen in new product developments?
  • Do alcoholic drinks consumers want value for money or added value?

Why buy this report?

  • Gain competitive intelligence about market leaders
  • Track key industry trends, opportunities and threats
  • Inform your marketing, brand, strategy and market development, sales and supply functions

This industry report originates from Passport, our Alcoholic Drinks market research database.

Alcoholic Drinks in Azerbaijan

EXECUTIVE SUMMARY

Economic stability underpins positive performance of alcoholic drinks in 2018
Regulatory reforms support growth in domestic production and imports
Investment in promotion of local brands continues to rise
Modern retailers gain ground at off-trade level as tourism boosts on-trade sales
Moderate growth in alcoholic drinks consumption expected over the forecast period

MARKET BACKGROUND

Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments

TAXATION AND DUTY LEVIES

Summary 1 Taxation and Duty Levies on Alcoholic Drinks 2018 (AZN per litre of pure alcohol)

OPERATING ENVIRONMENT

Contraband/parallel trade
Duty free
Cross-border/private imports

KEY NEW PRODUCT LAUNCHES

Outlook

MARKET INDICATORS

Table 1 Retail Consumer Expenditure on Alcoholic Drinks 2013-2018

MARKET DATA

Table 2 Sales of Alcoholic Drinks by Category: Total Volume 2013-2018
Table 3 Sales of Alcoholic Drinks by Category: Total Value 2013-2018
Table 4 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2013-2018
Table 5 Sales of Alcoholic Drinks by Category: % Total Value Growth 2013-2018
Table 6 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2017
Table 7 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2017
Table 8 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume 2017
Table 9 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Value 2017
Table 10 GBO Company Shares of Alcoholic Drinks: % Total Volume 2014-2018
Table 11 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2013-2018
Table 12 Distribution of Alcoholic Drinks by Format and by Category: % Off-trade Volume 2018
Table 13 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2018-2023
Table 14 Forecast Sales of Alcoholic Drinks by Category: Total Value 2018-2023
Table 15 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2018-2023
Table 16 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 2 Research Sources

Beer in Azerbaijan

HEADLINES

PROSPECTS

Beer benefits from greater economic stability in 2018
Domestic economy lager remains the most dynamic category in volume terms
Carlsberg introduces new flavoured/mixed lager brands

COMPETITIVE LANDSCAPE

Carlsberg Azerbaijan maintains its commanding lead in 2018
Independent small grocers channel continues to lose ground to supermarkets
High prices restrict demand in niche categories

CATEGORY BACKGROUND

Summary 3 Lager by Price Band 2018

CATEGORY DATA

Table 17 Sales of Beer by Category: Total Volume 2013-2018
Table 18 Sales of Beer by Category: Total Value 2013-2018
Table 19 Sales of Beer by Category: % Total Volume Growth 2013-2018
Table 20 Sales of Beer by Category: % Total Value Growth 2013-2018
Table 21 Sales of Beer by Off-trade vs On-trade: Volume 2013-2018
Table 22 Sales of Beer by Off-trade vs On-trade: Value 2013-2018
Table 23 Sales of Beer by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 24 Sales of Beer by Off-trade vs On-trade: % Value Growth 2013-2018
Table 25 GBO Company Shares of Beer: % Total Volume 2014-2018
Table 26 NBO Company Shares of Beer: % Total Volume 2014-2018
Table 27 LBN Brand Shares of Beer: % Total Volume 2015-2018
Table 28 Forecast Sales of Beer by Category: Total Volume 2018-2023
Table 29 Forecast Sales of Beer by Category: Total Value 2018-2023
Table 30 Forecast Sales of Beer by Category: % Total Volume Growth 2018-2023
Table 31 Forecast Sales of Beer by Category: % Total Value Growth 2018-2023

Cider/Perry in Azerbaijan

HEADLINES

PROSPECTS

Carlsberg launches its Somersby brand in 2018
Cider/perry remains a niche category in Azerbaijan
Supermarkets remains the leading off-trade distribution channel for cider/perry

COMPETITIVE LANDSCAPE

C&C Group maintains its dominant position in 2018
Cider/perry set to face greater competition from flavoured/mixed lager
Dominance of international brands expected to persist

CATEGORY DATA

Table 32 Sales of Cider/Perry: Total Volume 2013-2018
Table 33 Sales of Cider/Perry: Total Value 2013-2018
Table 34 Sales of Cider/Perry: % Total Volume Growth 2013-2018
Table 35 Sales of Cider/Perry: % Total Value Growth 2013-2018
Table 36 Sales of Cider/Perry by Off-trade vs On-trade: Volume 2013-2018
Table 37 Sales of Cider/Perry by Off-trade vs On-trade: Value 2013-2018
Table 38 Sales of Cider/Perry by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 39 Sales of Cider/Perry by Off-trade vs On-trade: % Value Growth 2013-2018
Table 40 GBO Company Shares of Cider/Perry: % Total Volume 2014-2018
Table 41 NBO Company Shares of Cider/Perry: % Total Volume 2014-2018
Table 42 LBN Brand Shares of Cider/Perry: % Total Volume 2015-2018
Table 43 Forecast Sales of Cider/Perry: Total Volume 2018-2023
Table 44 Forecast Sales of Cider/Perry: Total Value 2018-2023
Table 45 Forecast Sales of Cider/Perry: % Total Volume Growth 2018-2023
Table 46 Forecast Sales of Cider/Perry: % Total Value Growth 2018-2023

Rtds in Azerbaijan

HEADLINES

PROSPECTS

RTDs remains a minor category but continues to attract young adults
Inbound tourism boosts growth in on-trade RTDs volume sales
Expansion of RTDs set to continue over the forecast period

COMPETITIVE LANDSCAPE

Bacardi & Co continues to lead RTDs in Azerbaijan
Manufacturers remain cautious in terms of new product development
Domestic producers unlikely to enter RTDs over the forecast period

CATEGORY DATA

Table 47 Sales of RTDS by Category: Total Volume 2013-2018
Table 48 Sales of RTDS by Category: Total Value 2013-2018
Table 49 Sales of RTDS by Category: % Total Volume Growth 2013-2018
Table 50 Sales of RTDS by Category: % Total Value Growth 2013-2018
Table 51 Sales of RTDS by Off-trade vs On-trade: Volume 2013-2018
Table 52 Sales of RTDS by Off-trade vs On-trade: Value 2013-2018
Table 53 Sales of RTDS by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 54 Sales of RTDS by Off-trade vs On-trade: % Value Growth 2013-2018
Table 55 GBO Company Shares of RTDS: % Total Volume 2014-2018
Table 56 NBO Company Shares of RTDS: % Total Volume 2014-2018
Table 57 LBN Brand Shares of RTDS: % Total Volume 2015-2018
Table 58 Forecast Sales of RTDS by Category: Total Volume 2018-2023
Table 59 Forecast Sales of RTDS by Category: Total Value 2018-2023
Table 60 Forecast Sales of RTDS by Category: % Total Volume Growth 2018-2023
Table 61 Forecast Sales of RTDS by Category: % Total Value Growth 2018-2023

Spirits in Azerbaijan

HEADLINES

PROSPECTS

Economic improvements underpin recovery in spirits consumption
Tradition and competitive prices support positive performance of vodka
Protectionist policies hamper the development of niche spirits categories

COMPETITIVE LANDSCAPE

Az-Granata maintains its overall lead in spirits
Local producers continue to lead spirits
Azerbaijan becomes a more attractive destination for foreign spirits manufacturers

CATEGORY DATA

Table 62 Sales of Spirits by Category: Total Volume 2013-2018
Table 63 Sales of Spirits by Category: Total Value 2013-2018
Table 64 Sales of Spirits by Category: % Total Volume Growth 2013-2018
Table 65 Sales of Spirits by Category: % Total Value Growth 2013-2018
Table 66 Sales of Spirits by Off-trade vs On-trade: Volume 2013-2018
Table 67 Sales of Spirits by Off-trade vs On-trade: Value 2013-2018
Table 68 Sales of Spirits by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 69 Sales of Spirits by Off-trade vs On-trade: % Value Growth 2013-2018
Table 70 GBO Company Shares of Spirits: % Total Volume 2014-2018
Table 71 NBO Company Shares of Spirits: % Total Volume 2014-2018
Table 72 LBN Brand Shares of Spirits: % Total Volume 2015-2018
Table 73 Forecast Sales of Spirits by Category: Total Volume 2018-2023
Table 74 Forecast Sales of Spirits by Category: Total Value 2018-2023
Table 75 Forecast Sales of Spirits by Category: % Total Volume Growth 2018-2023
Table 76 Forecast Sales of Spirits by Category: % Total Value Growth 2018-2023

Wine in Azerbaijan

HEADLINES

PROSPECTS

Import tax hike boosts consumption of domestic wine brands
Local wine producers increase export volumes in 2018
Despite low per capita consumption, outlook for wine remains positive

COMPETITIVE LANDSCAPE

Ganja-Sharab continues to lead wine in Azerbaijan
Az-Granata introduces new non-alcoholic wine product
New initiative to promote local wine production launched in 2018

CATEGORY DATA

Table 77 Sales of Wine by Category: Total Volume 2013-2018
Table 78 Sales of Wine by Category: Total Value 2013-2018
Table 79 Sales of Wine by Category: % Total Volume Growth 2013-2018
Table 80 Sales of Wine by Category: % Total Value Growth 2013-2018
Table 81 Sales of Wine by Off-trade vs On-trade: Volume 2013-2018
Table 82 Sales of Wine by Off-trade vs On-trade: Value 2013-2018
Table 83 Sales of Wine by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 84 Sales of Wine by Off-trade vs On-trade: % Value Growth 2013-2018
Table 85 Forecast Sales of Wine by Category: Total Volume 2018-2023
Table 86 Forecast Sales of Wine by Category: Total Value 2018-2023
Table 87 Forecast Sales of Wine by Category: % Total Volume Growth 2018-2023
Table 88 Forecast Sales of Wine by Category: % Total Value Growth 2018-2023