Alcoholic drinks in Estonia saw growth in total current value sales slow sharply in 2024, while total volume sales contracted for a second consecutive year. With cost-of-living pressures remaining elevated, consumption continued to be subdued by more cautious attitudes to discretionary spending. The negative impact of this trend was most apparent at the on-trade level, where the vast majority of categories posted steep volume declines. Retail demand proved much more resilient, with overall off-trade volume sales increasing at a modest pace after having fallen in 2023. This turnaround was mainly attributable to a substantial reduction in inflation over the course of the year, which created greater room for price-based promotional activity and supported a nascent recovery in confidence and purchasing power among consumers.
Beer remained by far the largest of the main alcoholic drinks categories in Estonia in total volume sales terms in 2024. Although it only registered marginal growth in this respect, this represented an improvement on 2023 and meant it fared better than the market as a whole. With on-trade consumption plummeting due to heightened budget-consciousness, growth was entirely driven by rising demand at the off-trade level, where comparatively affordable prices and the strength of traditional drinking habits shielded the category from the worst effects of the cost-of-living squeeze. New launches, increased price-based promotional activity and improvements in the distribution of various products helped to further buoy retail sales, particularly of economy lager and domestic brands. Higher-end craft-style and speciality variants from brands like Põhjala also performed reasonably well, but interest in the premium segment was muted overall as Estonians continued to exercise greater caution in their spending decisions.
A Le Coq AS retained the overall lead in alcoholic drinks in Estonia in total volume sales terms in 2024. Its market volume share declined slightly from 2023 due to relatively challenging trading conditions and increasing competition. Nonetheless, it continued to hold first place in beer and remained the second ranked player in both cider/perry and RTDs thanks to an extensive portfolio that spans multiple categories and price points and boasts several well-established brands that enjoy high levels of recognition and loyalty, wide off- and on-trade distribution coverage and strong advertising support. Its best sellers include Alexander, A Le Coq Premium, Pilsner, Gin Long Drink and Special. These and other ranges are frequently updated through the launch of new flavour variants and changes to packaging formats and designs, which helps to maintain interest among consumers. Moreover, the company’s brands are regularly the subject of prominent displays and special offers in retail outlets. For instance, in the summer of 2024 A Le Coq products were promoted via the “Suvi On Käes” campaign, which combined in-store activities such as multipack deals with social media competitions where entrants could win festival tickets and other prizes.
Supermarkets and hypermarkets remained the top two off-trade distribution channels for alcoholic drinks in Estonia in volume terms in 2024, as these types of stores carry extensive assortments and are among the most competitive when it comes to pricing policies. Hypermarkets was also the most dynamic channel overall during the year, with a double-digit increase in its market share coming primarily at the expense of supermarkets. This gain was mainly attributable to the fact that leading hypermarkets chains were more aggressive than supermarket counterparts in expanding their selections, running themed and price-based promotions and opening new outlets. The same activities supported a modest increase in the market share claimed by discounters, as did heightened budget-consciousness and growing acceptance of private label products among consumers.
Alcoholic drinks consumption in Estonia continued to be heavily concentrated at the off-trade level in 2024. Following consistent gains in the previous three years, the share of total volume sales generated via on-trade channels fell from 2023 as rising prices and weakened purchasing power led most people to curb spending on socialising outside the home. Inbound tourism and popular annual cultural events like Tallinn Music Week and Õllesummer mitigated the negative impact of this trend to some extent, but RTDs was the only one of the main market categories to expand in on-trade volume terms, with the other four all posting double-digit declines in this respect.
The outlook for alcoholic drinks in Estonia over the forecast period is generally favourable, with total volume and current value sales projected to increase steadily. Overall demand should rebound in off- and on-trade channels from 2025 as consumer confidence and purchasing power continue to recover in tandem with the further easing of inflationary pressures and other positive macroeconomic indicators. Expansion thereafter will be supported by the strength of traditional consumption habits, rising inbound tourism flows, high levels of innovation and sustained investment in promotional activities and distribution networks by established manufacturers and new entrants. However, growth potential for the market as a whole will be constrained by maturity, population decline and the fact that health concerns are leading more people to consciously reduce their intake of alcohol.
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Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
See all of our definitionsThis report originates from Passport, our Alcoholic Drinks research and analysis database.
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