Euromonitor International, world’s leading provider for global business intelligence and strategic market analysis, has recently released a new research, stating global alcoholic drinks volumes registered a decline of 0.7 per cent in 2015, entering negative territory for the first time in more than a decade. This translated into a loss of 1.7 billion litre of alcoholic drinks volume sales since 2014.
As per the report, the historic growth narratives derailed due to the influence of macro headwinds hitting China, which recorded a 3.5 per cent decline. Brazil and Eastern Europe showed further weaknesses, falling 2.5 and 4.9 per cent, respectively. While Western Europe and Australasia flat lined, North America’s 2.3 per cent growth provided a shot of optimism in an otherwise sobering global landscape where even the potential of AMEA (Asia, Middle East and Africa) was diluted by currency volatility and commodity price fluctuations.
Spiros Malandrakis, senior alcoholic drinks analyst, comments, “While terms such as authenticity and craftsmanship are losing traction, the trajectories of sophistication, moderation, perceived exotic credentials, accessibility and restrained yet grounded aspirational attributes remain the key driving forces fuelling pockets of buoyancy.” He continues saying, “Premium English gin, Irish and Japanese whiskey, dark and non-alcoholic beer are the flagbearers of growth and it is no coincidence that those also happen to be the segments gaining further momentum with the ever important millennial demographic in mature Western markets.”
Beyond those star performers, tequila and bourbon remained solid, while cognac bounced back strongly. Cider performed well but has softened as Americans move to hard soda drinks. Rum and vodka find themselves amongst the worst performers, while still light white and red wine varietals join sparkling wines back to healthy levels.
“While initial forecasts suggest a gradual recovery from 2016, performance will remain substandard compared to historical trajectories. It is not the industry’s vision that is impaired but rather the horizon that can be treacherous,” concludes Malandrakis.
