Alcohol volumes drop for first time in decade
Global alcoholic drinks consumption has declined for the first time in a decade, with rum and vodka identified as the “worst performers”, Euromonitor International research has shown.
For the first time in a decade, global alcohol consumption has fallenWorldwide volumes in the industry dropped 0.7% in 2015, translating to a loss of 1.7 billion litres of alcoholic drinks sales since 2014.
According to Euromonitor, the historic growth narrative was derailed by macro-economic headwinds hitting China, which recorded a 3.5% decline last year, in addition to “weakness” in Brazil and Eastern Europe, which declined 3.5% and 4.9% respectively.
Growth in Western Europe and Australasia remained flat, while Asia, Middle East and Africa regions were hit by currency volatility and commodity price fluctuations.
However, performance in North America remained positive, with 2.3% growth.
“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,” said Spiros Malandrakis, senior alcoholic drinks analyst at Euromonitor.
“Premium English gin, Irish and Japanese whisky, dark and non-alcoholic beer are the flag bearers 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.”
Other categories that saw solid growth last year included Tequila and Bourbon, while Cognac “bounced back strongly”. However, Euromonitor identifies rum and vodka as the “worst performers” in the alcoholic drinks sector.
Cider “performed well” but lost share to “hard soda drinks” that have been gaining traction in the US.
“While initial forecasts suggest a gradual recovery from 2016, performance will remain substandard compared to historical trajectories,” added Malandrakis.
“It is not the industry’s vision that is impaired but rather the horizon that can be treacherous.”
