The relationship between private import of alcoholic beverages and domestic sales of alcoholic beverages: analyses of Swedish time-series data.

Abstract

Private imports of alcoholic beverages-often referred to as cross-border trade-have long raised concerns in Sweden and other Nordic countries due to their potential impact on national alcohol policies and public health. A key concern is that this trade increases total alcohol consumption and related harms. This study examines the relationship between private alcohol imports and domestic sales in Sweden, with a focus on how cross-border trade influences total alcohol consumption. Using regional and beverage-specific time series data from 2002 to 2023, we applied SARIMA modelling to self-reported import estimates from the Monitor project to assess substitution effects on domestic alcohol sales. Private imports significantly displace domestic alcohol purchases, particularly in southern Sweden across all beverages, though the substitution is partial. For Sweden as a whole, analyses indicate that a 1-litre increase in imports is associated with a 0.456-litre decrease in domestic sales. In central Sweden, only spirits imports show a significant effect (1-litre increase in spirits imports yields a 0.175-litre decrease in domestic sprits sales), while no significant associations are observed in the north. The findings suggest that cross-border trade contributes to higher overall alcohol consumption, especially in border regions. Regional variation underscores the need for differentiated alcohol policy responses. Private imports undermine the effectiveness of domestic alcohol control measures. However, since domestic sales do not influence import levels, policy efforts such as increased excise taxation may reduce total consumption without triggering substantial compensatory imports.