Alcoholic drinks in 2024: The big picture
While alcoholic drinks in Azerbaijan saw growth in total volume sales pick up in 2024, growth in total current value sales fell well below that recorded in 2023. The slowdown in value terms was primarily explained by greater price stability as the recent spike in inflation rapidly receded. However, the resultant easing of cost-of-living pressures strengthened confidence and purchasing power among local consumers, and this helped to buoy demand across the market, particularly at the retail level. Volume sales were also lifted by growth in the population of legal drinking age and rising inbound tourist numbers. Moreover, favourable trading conditions attracted new entrants and simulated investment in innovation, advertising and the expansion of distribution networks by established producers, which further bolstered consumption. The positive impact of these trends was most visible in beer. Total volume sales of wine, spirits and RTDs also increased, with only cider/perry registering a negative performance in this respect.
2024 key trends
Beer remained by far the largest of the main alcoholic drinks categories in Azerbaijan in total volume sales terms in 2024. It was also the most dynamic performer among them in this regard, as the strength of traditional consumption habits ensured it was the chief beneficiary of the various factors driving the development of the market as a whole. In particular, reasonably stable unit prices, rising disposable incomes and increased investment in promotional activities bolstered demand in domestic mid-priced lager, the biggest contributor to total beer volume sales by a huge margin. Meanwhile, flavoured/mixed lager – which saw total volume sales grow at a much faster rate than any other category in the market, albeit from a low base – was especially well placed to capitalise on the expansion of the population over 18 years of age, as such products primarily appeal to young adults. Both of these categories also profited from the success of new launches, most notably the introduction of the Kul Ice brand by Carlsberg Azerbaijan LLC.
Competitive landscape
Carlsberg remained the clear leader in alcoholic drinks in Azerbaijan in total volume sales terms in 2024. It continued to hold a dominant position in beer, where its extensive portfolio covers several categories and price points and offers multiple domestic and imported brands that are heavily advertised, widely available via off- and on-trade channels and enjoy high levels of recognition and loyalty among consumers. Xirdalan is by far the most popular of these brands, while Afsana, Tuborg, Carlsberg and Kronenbourg 1664 Blanc also have a broad appeal. Early in 2024, the Baltika brand – previously one of its most successful – was removed from Carlsberg’s portfolio after it reached a deal to divest its operations in Russia. Nonetheless, the company’s market volume share remained unchanged on 2023, as increased investment in promotional support for Xirdalan and the positive reception for newly launched brands such as Kul Ice helped to compensate for the loss of Baltika.
Retail developments
Small local grocers remained the leading off-trade distribution channel for alcoholic drinks in Azerbaijan in volume terms in 2024. Such retailers are found in large numbers across the country, and are often the only kind that are easily accessible to residents of smaller towns and rural areas. They also benefit from the fact that people frequently make impulse purchases of beer, wine and other product types in stores located close to their homes and workplaces. However, as was the case throughout the review period, the overall volume share held by this channel declined from 2023 due to consumer migration to modern grocery retailers offering wider assortments and more competitive prices.
On-trade vs off-trade split
Alcoholic drinks consumption in Azerbaijan continued to be heavily concentrated at the off-trade level in 2024. However, in keeping with the upward trend observed over most of the review period, the share of total volume sales generated via on-trade channels increased from 2023. This gain was partly attributable to long-term factors such as rising urbanisation and the country’s relatively young demographic profile. It was also driven by improvements in confidence and purchasing power among local consumers as inflation came down substantially. Additionally, robust growth in inbound tourist numbers helped to boost on-trade demand. Among the main market categories, beer was the most dynamic performer in on-trade volume growth terms.
What next for alcoholic drinks?
Alcoholic drinks in Azerbaijan is projected to see total volume and current value sales grow steadily throughout the forecast period. Expansion will be underpinned by the resilience of traditional consumption habits, economic development and growth in the population of legal drinking age. Investment in innovation, promotional activities and distribution networks by established producers and new entrants will also help to drive demand. On-trade channels will retain the lion’s share of total volume sales, but the share held by on-trade channels should continue to increase in line with further improvements in purchasing power among Azerbaijanis, rising urbanisation and growth in inbound tourist numbers.
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Overview:
Understand the latest market trends and future growth opportunities for the Alcoholic Drinks industry in Azerbaijan with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Beer
- Wine
- Spirits
- Cider and Perry
- RTDs
If you're in the Alcoholic Drinks industry in Azerbaijan, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
The Alcoholic Drinks in Azerbaijan report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Alcoholic Drinks in Azerbaijan?
- Where is consumer demand for Alcoholic Drinks focussed?
- Which is being consumed more; beer, wine or spirits?
- Where is demand growing? Stagnating?
- How is the operating environment for alcoholic drinks changing?
- Which are the leading brands in Azerbaijan?
- How are products distributed in Azerbaijan?
- What are the key trends in new product development?
- Do consumers want value for money or added value?
- How will macroeconomic context and shifting cultural values shape future growth?
- How will COVID-19 and recession impact the alcoholic drinks industry?
- Where is future growth expected to be most dynamic?
Alcoholic Drinks in Azerbaijan
Alcoholic drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
On-trade vs off-trade split
What next for alcoholic drinks?
Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments
TAXATION AND DUTY LEVIES
Contraband/parallel trade
Duty free
Cross-border/private imports
Outlook
DISCLAIMER
Beer in Azerbaijan
KEY DATA FINDINGS
Beer consumption increases as cost-of-living pressures ease
Carlsberg Azerbaijan LLC maintains its dominant position
Small local grocers still the leading off-trade distribution channel
Overall demand set to remain solid
Rising health-consciousness will continue to strengthen interest in non alcoholic beer
Increasing maturity likely to encourage more premium-oriented launches
Lager price band methodology
Cider/Perry in Azerbaijan
KEY DATA FINDINGS
Cider/perry consumption continues to plummet
Carlsberg remains the dominant player with its Somersby brand
Distribution still heavily concentrated in the supermarkets channel
Lack of cider-drinking culture in Azerbaijan will continue to limit demand
Competitive threat posed by flavoured/mixed lager and RTDs expected to increase
New product development activity likely to remain negligible
Rtds in Azerbaijan
KEY DATA FINDINGS
Interest in recently launched cocktail-style products continues to rise
A+Co MMC overtakes Avrora to claim leading position in RTDs
Supermarkets remains the dominant off-trade distribution channel
Outlook is positive but RTDs set to remain a niche category
Domestic players likely to face greater competition from imported brands
Flavour diversification will help to maintain interest among young adults
Spirits in Azerbaijan
KEY DATA FINDINGS
Weakening demand for vodka drags down overall performance of spirits
Ganja-Sharab Wine Factory maintains sizeable overall lead in volume terms
Small local grocers remains the dominant retail distribution channel
Maturity of vodka will continue to limit overall growth prospects
Off-trade consumption likely to increase fastest in majority of categories
More local producers expected to expand their focus beyond vodka and brandy
Wine in Azerbaijan
KEY DATA FINDINGS
Overall demand remains robust despite slowdown in on-trade consumption
Local speciality and premium varieties are prominent among new launches
Off-trade distribution share of small local grocers continues to fall
Healthy growth in total volume sales projected
Local brands will continue to account for largest share of wine consumption
Premiumisation trend likely to become more ingrained
The following categories and subcategories are included:
Alcoholic Drinks
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- Ale
- Sorghum
- Weissbier/Weizen/Wheat Beer
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- Flavoured/Mixed Lager
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- Domestic Premium Lager
- Imported Premium Lager
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- Domestic Mid-Priced Lager
- Imported Mid-Priced Lager
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- Domestic Economy Lager
- Imported Economy Lager
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- Domestic Premium Lager
- Domestic Mid-Priced Lager
- Domestic Economy Lager
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- Imported Premium Lager
- Imported Mid-Priced Lager
- Imported Economy Lager
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- Low Alcohol Beer
- Non Alcoholic Beer
- Stout
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- Regular Cider/Perry
- Non Alcoholic Cider/Perry
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- Malt-based RTDs
- Spirit-based RTDs
- Wine-based RTDs
- Other RTDs
- Non Alcoholic RTDs
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- Brandy
- Cognac
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- Bitters
- Cream-based Liqueurs
- Other Liqueurs
- Non Alcoholic Spirits
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- Prestige Dark Rum
- Ultra Premium Dark Rum
- Super Premium Dark Rum
- Premium Dark Rum
- Standard Dark Rum
- Economy Dark Rum
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- Prestige White Rum
- Ultra Premium White Rum
- Super Premium White Rum
- Premium White Rum
- Standard White Rum
- Economy White Rum
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- Tequila (and Mezcal)
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- Bourbon/Other US Whiskey
- Canadian Whisky
- Irish Whiskey
- Japanese Whisky
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- Blended Malt Scotch Whisky
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- Prestige Other Blended Scotch Whisky
- Ultra Premium Other Blended Scotch Whisky
- Super Premium Other Blended Scotch Whisky
- Premium Other Blended Scotch Whisky
- Standard Other Blended Scotch Whisky
- Economy Other Blended Scotch Whisky
- Single Grain Scotch Whisky
- Single Malt Scotch Whisky
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- Other Whiskies
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- Prestige English Gin
- Ultra Premium English Gin
- Super Premium English Gin
- Premium English Gin
- Standard English Gin
- Economy English Gin
- Dutch Gin
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- Prestige Vodka
- Ultra Premium Vodka
- Super Premium Vodka
- Premium Vodka
- Standard Vodka
- Economy Vodka
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- Absinthe
- Ad-Mix Brandy
- Ad-Mix Gin
- Ad-Mix Rum
- Ad-Mix Vodka
- Ad-Mix Whisky
- Aguardente/Aguardiente
- Aguardiente De Caña
- Akvavit/Aquavit
- Aniseed-Flavoured Spirits
- Borovicka
- Boukha
- Brandy Type Distilled Spirits
- Cachaça
- Calvados
- Cane
- Chacha
- Charanda
- Chinese Herbal Spirits
- Chinese Spirits
- Cut Brandy
- Destilados De Agave
- Distilled Fruit Spirits
- Domestic Brandy
- Domestic Rum
- Doppelkorn
- Economy Chinese Spirits
- Flavoured Spirits
- Flavoured Vodka-based Drinks
- Fynbos gin/Local Gin
- Gin-flavoured spirits
- Goldbrand/Goldkrone
- Grappa
- Grappamiel
- Guaro
- Kirsch
- Komovica
- Korn
- Lambanog
- Limoncello
- Local White Spirits
- Lower Mid-Range Chinese Spirits
- Lozovaca
- Maesilju
- Mahia Rabi Amrane
- Mead
- Mixed Spirits
- Nalivka/Nalewka
- Nastoyka
- National Specialities
- Obstbrände
- Ouzo
- Pacharán
- Palinca/Pálinka
- Pear and Apple Distillates
- Pisco
- Premium Chinese Spirits
- Prune
- Punsch
- Rachiu/Rakija
- Rum-Flavoured Spirits
- Samane
- Sambuca
- Samsu
- Schnapps
- Shochu/Soju
- Singani
- Sljivovica/Slivovice
- Steinhäeger
- Strong African Spirits
- Super Premium Chinese Spirits
- Sura Khao
- Tequila Flavoured Spirits
- Travarica
- Tsipouro
- Upper Mid-Range Chinese Spirits
- Vieux
- Viina
- Vodka Type Distilled Spirits
- Other Distilled Beverages
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- Port
- Sherry
- Vermouth
- Other Fortified Wine
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- Apple Wine
- Bokbunjaju
- Cheongju
- Chinese Wine
- Economy Rice Wine
- Fortified Fruit Wine
- Fruit and Berry Wine
- Fruit and Herbal Wine
- Fruit and Honey based Wine
- Fruit Wine
- Lower Mid-Range Rice Wine
- Non-Grape Dessert Wine
- Premium Rice Wine
- Sake
- Takju
- Upper Mid-Range Rice Wine
- Yakju
- Yellow Wine
- Other Non-Grape Wine
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- Champagne
- Other Sparkling Wine
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- Still Red Wine
- Still Rosé Wine
- Still White Wine
- Non Alcoholic Wine
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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This report originates from Passport, our Alcoholic Drinks research and analysis database.
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