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.
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.
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.
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.
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.
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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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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