Industry looks to Asia for long-term growth

Asia-Pacific is set to be the fastest-growing region in the drinks sector over the next five years, according to latest figures.

The IWSR Forecast Report 2011-16 predicts that Asia-Pacific will overtake the Americas as the second largest region for consumption and, not long after 2016, will overtake Europe as well.

Brown spirits and premiumisation – albeit at a slower rate – have also been identified as key drivers of growth across the global industry.

The latest forecasts predict total spirits consumption to rise from 2.81 billion cases to 3.32bn – a rise of over half a billion cases between 2010 and 2016 – and 85.9% of this growth will come from just two markets, China (63.2%) and India (22.7%).

An IWSR statement said: “The next five years will be characterised by the ever-increasing importance of emerging markets especially in Asia, Central and Eastern Europe, and much of South America.

“The growing importance of brown spirits will also be a key trend, as will continued, and significant, premiumisation although at a slower rate than previously due to a weaker economic outlook for many countries.”

According to the report, sales of premium-and-above spirits will rise from 109.35 million cases to 143.07m cases.

Vodka and whisk(e)y will account for 71.4% of total growth of the Western-style categories in the standard-and-above quality segments.