Alcoholic Drinks: Quarterly Statement Q4 2021

Delivery

This report comes in PPT.

Key Findings

Forecast performance only marginally upgraded

Euromonitor International’s updated forecast does not include any big surprises but instead largely reiterates our forecast trajectories. The recovery narrative is gaining momentum – even if regional volatility and downside risks remain in the short to medium term.

Non alcoholic spirits ride the sober curiosity wave

Entering the alcohol industry’s lexicon years before the pandemic and embracing health and wellness as much as lifestyle cues , non alcoholic adult beverages came of age during the darkest days of lockdowns. With a plethora of brands being launched and functionality- led attributes increasingly under the spotlight , the category’s short to medium term performance remains intoxicating.

The spectre of inflation is rising

Production and distribution bottlenecks, materials, ingredients , storage and labour supply issues and an undercurrent of stubbornly high inflationary pressures will replace mobility as the key areas of concern and source of headwinds while key markets continue reopening, Profit margin pressures or rising pricing will be a difficult but necessary choice in the short to medium term.

A polarised new world ?

While the premiumisation narrative proved its resilience over the course of the past couple of apocalyptic years – primarily on the back of generous government support schemes and the comparative affordability of off trade options that were the only available- macroeconomic pressures will intensify as economies reopen and partially overheat. Polarisation – allowing for some consumers to trade down or across while others retain aspirational consumption habits will become increasingly more important as a strategy.