The growing conservatism of the Turkish
people has seen the strongly religious/conservative APK government hold power
for more than a decade, and brought about the implementation of a number of
policies – including increased excise duty rates, a ban on advertising, and
limitations on sales - designed to reduce the consumption of alcoholic
beverages.
Despite this however, the Turkish beer
market actually grew in 2012, with the Effes Beverage Group continuing its
domination of the market, whilst its competitor Turk Tuborg has stolen a share
of the volume, supported by the success of its Tuborg Gold brand. The
popularity of imported beers has continued to rise, with premium beers being imported
from Europe; the consequent increased variety of beer options has helped
improved consumer knowledge of beer.
Complete report available @ http://www.rnrmarketresearch.com/turkey-beer-market-insights-2013-market-report.html.
For organizations that have a stake in the Turkish beer
market, a proper understanding of the broader context of life in Turkey, and
beer’s place in it, is paramount to successfully capitalizing on the
opportunities the market presents.
Population Growth
Turkey is a large country, both
geographically (800,00 sq km), and in terms of population (75.6 million). It
also has a young and urban population, with a median age of 30.1 years, and
with only 22.6% of the population living in rural areas. This growing,
predominantly urban, youth segment of the population is driving beer growth in
the country.
Economic Growth
The Turkish economy continues to be
dominated by a highly dynamic industrial sector concentrated around major
cities in the western provinces, along with well developed finance and service
sectors. The Turkish economy grew at a rate of 2.2% in 2012, following a higher
growth rate of 8.8% in the previous year in the previous year. Construction,
textiles and tourism are key drivers of economic growth in addition to
agricultural production. This consistent growth, especially in light of the
growing segment of youthful, less conservative consumers, is driving the good
performance of the beer market in Turkey.
Despite this however, the political
situation in the Middle East – especially in Syria – continues to play an
important role in the development of the Turkish economy. The threat to
Turkey’s future from terrorism, which is especially active in eastern parts of
the country, has lessened somewhat thanks to a peace deal with the terrorist
group PKK established at the end of 2012.
Live to Eat, Not Eat to Live
Whilst food preferences and
preparation vary by region and ethnicity, the Turkish people are generally
passionate about food, whether it be the fish dishes of the Black Sea region,
the spicy meat kebabs of the east, or the traditional stews that are popular in
homes across the country. With a love of food, often comes a love of drink, and
this offers hope for the beer industry in Turkey, despite the social pressure
against alcohol consumption outside of the major cosmopolitan and tourist
areas.
Drinking Habits
Turkey is a Muslim country, but
conventions on alcohol consumption – especially in metropolitan areas around
Istanbul, Ankara and Izmir, along with those regions that see a lot of tourist
trade – are similar to those in European countries. The national spirit is
raki, but its population is waning among younger consumers who tend to prefer
beer, not just as part of their nightlife, but because it is easier and cheaper
to consume.
Tax increases are largely blamed
for consumer beer prices more than doubling over the last seven years, making
Turkey one of the most highly-taxed beer markets in Europe. The current
taxation policies and legislation limiting alcoholic beverage marketing and
advertising are clear evidence that the AKP government is aiming to reduce
alcohol consumption in Turkey; as beer is the most commonly consumed alcoholic
drink, it is the most affected by these policies. The social implications of
recent government decisions means that even in Istanbul, it is seen as more
socially acceptable to drink alcohol at home, and in the present economic
climate, this is made even more attractive as a result of its being much
cheaper.
MARKET TRENDS
With the challenging cultural and
economic environment for Beer in Turkey, brewers must be highly sensitive to
current and emerging trends in the market in order to capitalize on revenue
boosting opportunities.
Increasing Knowledge of Beer Drinkers
Despite continued pressure on sales
from high taxation and limits on marketing and alcoholic beverages, the total
consumption of beer reached 9.6 th tl in 2012 – a 4% rise on the previous year.
The main reason for this growth has
been the successful performance of the second largest brewer on the market:
Turk Tuborg. In 2012, Effes Beverage Group and Turk Tuborg continued to be the
two major leading brewers, with a volume share of 85% and 15% respectively.
However, compared to the previous year, Effes Beverage Group lost 1% share,
whilst Turk Tuborg increased by just over 1%.
This has been in part driven by
Turk Tuborg’s heavy investment in the quality of its production facilities
following its ownership change in 2008, and its significant marketing efforts
for its flagship brand, ‘Tuborg Gold’. This has seen successful communication
campaigns centered around its 100% malt content, and is evidence for the
increasing consciousness of Turkish consumers of the ingredients used in beer;
indeed, Effes Beverage Group has followed this trend and launched a number of
malt beers, including Effes Malt and Bomonti Unfiltered.
Increased Imports
Another noteworthy trend in the Turkish
beer market is the increased number of imported beers on the market in 2012:
consumption volume of imported beers has increased more than 51% in comparison
with 2011. These include Duvel, Peroni, Corona, Guinness, Leffe, and
Hoegaarden, and lend further evidence for the increased awareness of Turkish
consumers about beer driving the market.
OUTLOOK
In 2013, a similar story is
expected to 2012: the government is very likely to increase special consumption
tax (OTV) on domestic/licensed beers, and excise duty on imports. There are
already plans for further limiting the marketing and advertising of alcoholic
beverages, which will ban the advertisement of alcoholic beverages across all
media; sponsoring concerts and similar events will be prohibited for alcoholic
beverage companies or brands, and labels to emphasize the health risks
associated with drinking will have to be added to packaging in a similar way to
cigarette packaging.
Turk Tuborg’s market share and the
share of imported beers are both expected to increased above the category
average, with a wider selection of world beers available.
