Restrictions on the sale and advertisement of beer continue to restrict growth in the market. The special consumption tax was increased twice in 2014. There is a hostile political stance against the consumption of beer which is leading the decline in the industry. The labelling of beer has now also changed with warning signs and a ban on shop signs with alcohol brands.
- Efes Beverage Group continue to hold market share with 77% with Turk Tuborg gaining shares
- Turk Tuborg have extended their distribution network as well as emphasising the quality of their products
- As the ruling government did not win the latest general election it is likely the market will start recovering in 2016.
Canadean's Turkey Beer Market Insights 2015 Report provides a complete overview of the Turkey beer industry structure offering a comprehensive insight into historical background trends, 2014 performance and 2015 outlook. Covering total market (on and off-premise) the report details:
- 2010-2014 actual detailed beer consumption volume data by segment, brand, brewer, packaging and distribution (on-/off-premise), with 2015 forecasts
- Top line production, import, export and consumption volume from 2004-2014 with forecasts for 2015
- Value by distribution channel 2010-2014, with 2015 forecasts
- 2013-2015 selected on-/ off-premise retail prices
- Details of key beer new product launches in 2014 by company
- Overview of the competitive landscape in the beer market, with analysis of key company performance
- Insightful and valuable analysis of the drivers behind both current and emerging trends in the beer market
- Data is also available in excel format
- Gain an in-depth understanding of the dynamics and structure of the Turkey beer industry, from the latest competitive intelligence of both historical and forecast trends to enhance your corporate strategic planning
- Evaluate the current emerging trends and future growth opportunities in the Turkey beer market to support your brand development and marketing initiatives
- Understand volume vs value trends and identify the key growth opportunities across the super-premium, premium, mainstream and discount segments to best target profitability
- Analyse domestic and imported beer brand performance and determine the key trends driving consumption preference to develop a competitive advantage
- Interrogate the unique granularity of our data to analyse the market on a variety of levels to make well-informed decisions on future threats and growth prospects in the marketplace for your company
- Use our new powerpoint add-on to quickly absorb a succinct summary of the key trends in the Turkey beer market
- View a selection of the key 2014 product launches and identify competitor activity and product innovation and differentiation prospects
2 EXECUTIVE SUMMARY
3 MARKET CONTEXT
3.1 Market Context
3.2 Market Parameters Tables
3.3 Legislation and Taxation Tables
4 MARKET BACKGROUND BRIEFING
5 MARKET UPDATE
5.1 Market Commentary
5.2 New Products and Photo Shots
5.3 Packaging Trends
5.4 Beer Pricing Tables
5.5 Beer Data Tables
6 BREWER PROFILES
7.2 Methodology and Product Definitions
LIST OF FIGURES
Figure 1: Beer Leading Brewers/Importers, 2014
Figure 2: Beer Consumption by Pack Material/Type, 2014
Figure 3: Beer Distribution by Channel, 2014
Figure 4: Beer Consumption by Price Segment, 2014
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.
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.
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.
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.
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.
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.
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.
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.
The material was prepared in August, 2013.
Table 1: Turkey Population Size and Growth, 1986-2017F
Table 2: East Europe Population Size and Growth, 2004-2015F
Table 3: Turkey Economic Indicators, 2006-2016F
Table 4: East Europe Commercial Beverage Consumption - Per Capita, 2004-2015F
Table 5: East Europe Commercial Beverage Consumption - Per Capita % Share, 2004-2015F
Table 6: East Europe Commercial Beverage Consumption - Per Capita Growth, 2005-2015F
Table 7: Taxation Base
Table 8: Historical Excise Rates of Beer
Table 9: Legal Controls on Beer
Table 10: Tax Burden on Beer @ 5% Abv, 2014
Table 11: Leading Retail Groups for Beer 2010-2014 (number of outlets)
Table 12: Beer Key Facts
Table 13: Top 10 Beer Brands - Volume, 2012-2014
Table 14: Top 10 International Premium and Superpremium Beer Brands - Volume, 2012-2014
Table 15: Licensed Brand Owners and Licensees
Table 16: Beer Market Valuation (Local Currency), 2013-2015F
Table 17: Trade Margin Build-Up Model
Table 18: Selected Consumer Beer Prices: On-Premise, 2013-2015
Table 19: Selected Consumer Beer Prices: Off-Premise, 2013-2015
Table 20: Beer Production/Trade/Consumption 000 HL, 2004-2015F
Table 21: Beer Production/Trade/Consumption - Growth, 2004-2015F
Table 22: Consumption of FABs and Cider (000 HL), 2004-2015F
Table 23: Beer Foreign Trade By Country (Imports), 2011-2015F
Table 24: Beer Foreign Trade By Country (Exports), 2011-2015F
Table 25: Beer Market Valuation (Local Currency), 2013-2015F
Table 26: Beer Consumption by Local Definition, 2011-2015F
Table 27: Beer Consumption by Standard Price Segmentation, 2011-2015F
Table 28: Beer Consumption by Alcoholic Strength, 2011-2015F
Table 29: Beer Consumption by Type, 2011-2015F
Table 30: Beer Consumption by Geographic Scope, 2011-2015F
Table 31: Beer All Trademarks, 2010-2014
Table 32: Beer Brands by Local Definition, 2010-2014
Table 33: Beer Brands by Standard Price Segment, 2010-2014
Table 34: Beer Brands by Alcoholic Strength, 2010-2014
Table 35: Beer Brands by Type, 2010-2014
Table 36: Imported Brands by Origin, 2010-2014
Table 37: Beer Licensed Brands, 2010-2014
Table 38: Beer Private Label Brands, 2010-2014
Table 39: Beer Trademark Owners, 2010-2014
Table 40: Beer Local Operators, 2010-2014
Table 41: Beer leading Brewers/Importers, 2010-2014
Table 42: Beer Consumption by Pack Mix: Refillability/Pack/Size, 2011-2015F
Table 43: Beer Distribution: On vs Off Premise, 2011-2015F
Table 44: Efes Beverage Group Brand Volumes 2010-2014
Table 45: Park Group Brand Volumes 2010-2014
Table 46: Turk Tuborg Brand Volumes 2010-2014