Executive Summary

Jul 2019
PROSPECTS
Economic improvements underpin recovery in spirits consumption

The stabilisation of the economic situation in Azerbaijan continued to support a recovery in spirits consumption in 2018. Many categories showed improved performances after having suffered declines earlier in the review period.

Tradition and competitive prices support positive performance of vodka

Vodka remained the dominant spirits category in Azerbaijan in 2018, as this type of alcoholic drink has a strong local tradition. Together with the improvement in economic conditions, this tradition helped to ensure that the category continued to post healthy growth in total volume sales despite its maturity.

Protectionist policies hamper the development of niche spirits categories

While interest in niche and emerging categories such as whiskies, tequila and gin is gradually increasing in Azerbaijan, in recent years this trend has been hampered somewhat by the protectionist policies of the government. Most notably, tax hikes have made niche spirits categories that are mainly represented by imported products less affordable to many consumers.

COMPETITIVE LANDSCAPE
Az-Granata maintains its overall lead in spirits

Az-Granata remained the top player in spirits in total volume sales terms in 2018. This was primarily due to its leading position in vodka, though the company’s portfolio also covers other categories such as brandy and whiskies.

Local producers continue to lead spirits

Domestic companies continued to account for the largest share of total spirits volume sales in 2018. This was mainly due to their strength in vodka and brandy, the two most popular categories.

Azerbaijan becomes a more attractive destination for foreign spirits manufacturers

A number of large international spirits manufacturers have recently established production facilities in Azerbaijan, both to supply the domestic market and to create a base for exports to neighbouring territories. For example, in 2018 Tatspirtprom and Global Spirits announced that they were to begin spirits production in the country.

Want to find out more about this report?
Request more information
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.

Your Recently Viewed Reports

Spirits in Azerbaijan

Samples (FAQs about samples):

Delivery: Files are delivered directly into your account within a few minutes of purchase.

Overview

Discover the latest market trends and uncover sources of future market growth for the Spirits 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 Spirits industry in Azerbaijan, our research will save you time and money while empowering you to make informed, profitable decisions.

The Spirits 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 volume 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 Spirits in Azerbaijan?
  • What are the major brands in Azerbaijan?
  • Are consumers switching from international spirits to ‘cheaper’ local spirits as consumer spending is being squeezed?
  • What is the most popular price point for blended Scotch; super-premium, premium, standard or economy and has the recession resulted in a switch?
  • How do premium vs standard vs economy brands compete for sales?
  • What are the key flavours in vodka?

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.

Spirits in Azerbaijan - Category analysis

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 1 Sales of Spirits by Category: Total Volume 2013-2018
Table 2 Sales of Spirits by Category: Total Value 2013-2018
Table 3 Sales of Spirits by Category: % Total Volume Growth 2013-2018
Table 4 Sales of Spirits by Category: % Total Value Growth 2013-2018
Table 5 Sales of Spirits by Off-trade vs On-trade: Volume 2013-2018
Table 6 Sales of Spirits by Off-trade vs On-trade: Value 2013-2018
Table 7 Sales of Spirits by Off-trade vs On-trade: % Volume Growth 2013-2018
Table 8 Sales of Spirits by Off-trade vs On-trade: % Value Growth 2013-2018
Table 9 GBO Company Shares of Spirits: % Total Volume 2014-2018
Table 10 NBO Company Shares of Spirits: % Total Volume 2014-2018
Table 11 LBN Brand Shares of Spirits: % Total Volume 2015-2018
Table 12 Forecast Sales of Spirits by Category: Total Volume 2018-2023
Table 13 Forecast Sales of Spirits by Category: Total Value 2018-2023
Table 14 Forecast Sales of Spirits by Category: % Total Volume Growth 2018-2023
Table 15 Forecast Sales of Spirits by Category: % Total Value Growth 2018-2023

Alcoholic Drinks in Azerbaijan - Industry Overview

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 16 Retail Consumer Expenditure on Alcoholic Drinks 2013-2018

MARKET DATA

Table 17 Sales of Alcoholic Drinks by Category: Total Volume 2013-2018
Table 18 Sales of Alcoholic Drinks by Category: Total Value 2013-2018
Table 19 Sales of Alcoholic Drinks by Category: % Total Volume Growth 2013-2018
Table 20 Sales of Alcoholic Drinks by Category: % Total Value Growth 2013-2018
Table 21 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Volume 2017
Table 22 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: Value 2017
Table 23 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Volume 2017
Table 24 Sales of Alcoholic Drinks by Category by Off-trade vs On-trade: % Value 2017
Table 25 GBO Company Shares of Alcoholic Drinks: % Total Volume 2014-2018
Table 26 Distribution of Alcoholic Drinks by Format: % Off-trade Value 2013-2018
Table 27 Distribution of Alcoholic Drinks by Format and by Category: % Off-trade Volume 2018
Table 28 Forecast Sales of Alcoholic Drinks by Category: Total Volume 2018-2023
Table 29 Forecast Sales of Alcoholic Drinks by Category: Total Value 2018-2023
Table 30 Forecast Sales of Alcoholic Drinks by Category: % Total Volume Growth 2018-2023
Table 31 Forecast Sales of Alcoholic Drinks by Category: % Total Value Growth 2018-2023

DEFINITIONS

SOURCES

Summary 2 Research Sources