Drinkers
across the globe consumed a total of 27.6 billion nine-liter cases of alcohol
last year – a decline of 1.6%, according to International Wine and Spirit Record Drinks Market Analysis. The new data forecasts that total alcohol
consumption will gradually increase over the next five years to 28.5 billion in 2023. Looking
at retail value, the global market for alcohol last year was just over US$1
trillion. The IWSR expects this number to increase by 7% by 2023 as “consumers
continue to trade up to higher-quality products”.
Of all the alcoholic
drinks categories, gin posting the largest volume gain of 8.3% in 2018. Pink
gin helped to boost the category’s growth, selling more than 72 million cases
globally. By 2023, gin is forecast to hit 88.4 million cases globally with “strong
growth” in the UK, Philippines, South Africa, Brazil, Uganda, Germany,
Australia, Italy, Canada and France. In
the UK, gin grew by 32.5% last year. The world’s largest gin market, the
Philippines, posted growth of 8% boosted by a “booming cocktail scene and
premiumization”. Brazil was a “new
hotspot” for gin, with volumes more than doubling. The market is expected to
increase by 28.5% CAGR 2018-2023 as the trend for gin and tonics increases in
high-end bars in São Paulo and Rio de Janeiro.
The global whisky
category grew by 7% last year driven by “innovation in whisky cocktail and
highballs” and largely bolstered by a “strong” Indian economy. In India, whisky
grew 10.7% as consumers traded up. The
US and Japan posted 5% and 8% growth respectively. The IWSR forecasts whisky to
grow by 5.7% CAGR 2018-2023, to almost 581 million cases.
“Continued interest”
in Tequila and mezcal (particularly in the US), and “innovation in more premium
variants and cocktails” pushed the agave-based spirits category to 5.5% growth
in 2018 globally. The category is forecast to increase by 4% CAGR over the next
five years. Vodka saw its volumes drop by 2.8% in 2018
as the lower-priced segment continued its decline in Russia and Ukraine – the
largest markets for the category. Over
the next five years, vodka will “remain sluggish” and is expected to fall by
1.7% CAGR 2018-2023.
The liqueurs sector
also reported a decline last year, falling by 1.5%. It is expected to continue
to drop this year before witnessing a slight rebound in 2020.
The mixed drinks
category – including pre-mixed cocktails, long drinks, and flavored alcoholic
beverages – grew 5% globally in 2018. By 2023, it is anticipated that more than
597 million cases of mixed drinks will be consumed across the world. The growth is backed by continued strong
gains in ready-to-drink (RTD) cans in the US and Japan, the category’s two
largest markets. In the US, the popularity of alcohol seltzers has boosted
growth in the RTD market. Mixed drinks
and cider “are taking share from beer as perceived accessibility increases”. In
the cider category, almost 270 million cases are expected by 2023, a 2% CAGR
2018-2023.
While the spirits
category posted growth, beer declined 2.2% last year, and wine fell by 1.6% in
volume. “Every year our analysts spend
months traveling the world to speak with suppliers, wholesalers, retailers, and
other beverage alcohol professionals to assess what is happening market by
market in this fast-changing business,” said IWSR CEO Mark Meek. “The raw data we collect is enormously
valuable, but equally important is what that data tells us in terms of trends,
challenges, and opportunities facing the industry.”
