Beer in Estonia

PROSPECTS

Estonians purchase beer from Latvia

Beer is the most popular alcoholic drink in Estonia and is also the largest in terms of local production. Nevertheless, the category continued to experience decline due to the intensification of border trade caused by increasing alcohol taxes.

Non-alcoholic beer becoming popular in Estonia

Non-alcoholic beer in Estonia is becoming an increasingly attractive alternative to carbonates amongst local consumers. Increasing demand has led to a rapid expansion of this segment with several new brands emerging in Estonia.

Saturated beer unfavourable environment for new product development

Due to the maturity of beer in Estonia and the numerous brands within the category, mass market launches are occurring less often, while most new launches are offered in niche areas. Estonian ale and domestic lager tend to be solid consumer favourites.

COMPETITIVE LANDSCAPE

Domestic giants dominate beer

Estonian beer is dominated by the two domestic giants A Le Coq AS and Saku Õlletehase AS. Both producers have a long presence in alcoholic drinks in the country and their brands are well known to local consumers.

Small producers find barriers to entry

A large number of local small breweries have entered beer in Estonia to offer craft beer at marginally higher prices compared to the average unit price of the category. Higher prices play a significant role in encouraging local consumers to choose to purchase well-known mass brands.

Majority of beer consumed at home

The on-trade/off-trade ratio in Estonia is clearly in favour of the latter as the larger share of beer is consumed at home. With the price of beer charged by pubs, bars and other on-trade establishments continuously climbing, most Estonian consumers opt to purchase beer from supermarkets and drink it at home.

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