Drinking To The Future

Overall, the future looks positive for the global spirits industry. According to latest full year data, the global spirits market expanded by 7% in volume between 2010 & 2011.

Drinking To The Future

Thanks to premiumisation, growth in market value is outstripping volume. The industry experienced 10% growth in sales value over the same period. However moving forward the spirits industry faces a number of challenges, such as regulation.

 

Here are some of the key findings:

 

  1. Consumers of spirits and imported brands are growing rapidly in emerging markets: sales of imported spirits grew 16% in China and 25% in India from 2011 to 2012, and Brazil is the fastest growing market, with a 48% increase on 2010.
  2. Premium and super-premium brands are growing in Western markets, thanks to a focus on provenance and aspirational consumers. For example, the premium gin market in Spain has been growing at 18% a year.
  3. Social media provides an excellent opportunity for alcohol retailers to connect with consumers. There are innovative social media campaigns going on – although interaction doesn’t necessarily lead to engagement.
  4. A potential threat: this comes from the prospect of increased regulation in key markets, such as the proposed minimum pricing in the UK – already a law in Scotland.

 

Says Ines Nadal, “Overall, the future looks positive for the global spirits industry. Emerging markets are becoming key for global spirits companies, and in Western markets we see a lot of product innovation going on at the moment as brands try to capitalise on the latest market trends to connect with consumers. Our latest Trends deck looks at the key trends shaping the spirits industry across the globe, highlighting opportunities for brands as well as potential threats.”

Consumer & Shopper