Analysis of selected demand factors of wine market of the Czech Republic

Abstract

This paper analyzes the data on the development of the main factors of the demand for wine and wine consumption in the Czech Republic. The average annual wine consumption, one of the wine demand factors, grew between1991 and 2005 from 14.81 to 171 per capita. Following this trend, we can expect the average annual wine consumption 17.41 per capita in year 2010. However there are critical factors in the development of the demand for wine demand here. Specifically it is the daily feasible ratio of alcohol in wine and other alcoholic drinks, especially beer that we can treat as the substitute of wine. The ethanol consumption in beer accounts for 50% of the total ethanol consumption in alcoholic drinks in the Czech Republic. The negative influence on wine demand growth has been the price of other alcoholic drinks, especially beer that is the cheapest form of ethanol.