Technavios market research analyst predicts the Vodka market in Europe to grow at a CAGR of around 0.87%, in terms of revenue, during the forecast period. The rising demand for premium vodka and the growing cocktail culture are the key drivers for the growth of the market. The region is witnessing a growth in bars exclusively dedicated for cocktails. For instance, some of the favorite vodka-based cocktails are Screwdriver, Bloody Mary, and Sex on the Beach.
The high taxation imposed on alcoholic drinks in the region is expected to deter the growth of the vodka market during the forecast period. For instance, during 2014, the European Commission increased the excise tax on hard liquor by around 23%, resulting in the price of a half-liter bottle of vodka to rise to around USD 5.25.
Segmentation by category and analysis of the vodka market in Europe
Flavored vodka Unflavored vodka Unflavored vodka dominated the European market during 2014 with a market share of around 89%. However, the report predicts the flavored segment to be the fastest growing segment during the forecast period. Some of the favorite vodka flavors are apple, coconut, cranberry, caramel, blood orange, mint, honey, lemon, cucumber, lime, raspberry, and vanilla.
Geographical segmentation and analysis of the vodka market in Europe
Eastern Europe Western Europe Eastern Europe accounted for nearly 89% of the vodka market share during 2014. Unflavored vodka is the most popular category in this region. Russia, Poland, and Ukraine were the market leaders in this region, but, they are expected to witness a decline in the market growth during the forecast period. The rising illegal trading of alcohol and the rising accidents due to alcohol consumption is deterring the market growth in this region.
Competitive landscape and key vendors
The vodka market in Europe is fragmented due to the presence of numerous small and large suppliers. The providers in the market compete on the basis of price, quality, innovation, service, reputation, distribution, and promotion. The market is predicted to witness an increase in consolidations due to the intense competition.
The leading vendors in the market are -
Alcohol Siberian Group Belvedere Diageo Roust SPI Group Stock Spirits Synergy Other prominent vendors in the market include Bacardi, Brown-Forman, IceBerg Vodka, Soyuz Victan, William Grant & Sons, and ZYR Vodka.
Key questions answered in the report include
What will the market size and the growth rate be in 2019 What are the key factors driving the vodka market in Europe What are the key market trends impacting the growth of the vodka market in Europe What are the challenges to market growth Who are the key vendors in this market space What are the market opportunities and threats faced by the vendors in the vodka market in Europe What are the key outcomes of the five forces analysis of the vodka market in Europe Technavio also offers customization on reports based on specific client requirement.
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Technavio Announces the Publication of its Research Report – Vodka Market in Europe 2015-2019
Technavio recognizes the following companies as the key players in the Vodka Market in Europe: Alcohol Siberian Group, Belvedere, Diageo, Roust, SPI Group, Stock Spirits and Synergy
Other Prominent Vendors in the market are: Bacardi, Brown-Forman, IceBerg Vodka, Soyuz Victan, William Grant & Sons, and ZYR Vodka.
Commenting on the report, an analyst from Technavio’s team said: “The vodka market in Europe is also driven by the increased number of marketing and promotional activities of the vendors. Most market vendors are large-sized firms that have international businesses. As a result, these vendors have sufficient capital to invest in marketing and to build the brand image of their vodka and increase customer loyalty.”
According to the report, the popularity of unflavored vodka is high in Europe and it is a custom drink in many countries like Russia and Poland. The increasing demand for cocktails and use of vodka as a mixing spirit is driving the demand for unflavored vodka in Europe.
Further, the report states that high taxation and the increasing illegal vodka market will act as major challenges for the vodka market in Europe."
Alcohol Siberian Group, Belvedere, Diageo, Roust, SPI Group, Stock Spirits, Synergy, Bacardi, Brown-Forman, IceBerg Vodka, Soyuz Victan, William Grant & Sons, and ZYR Vodka.