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Cider/ Perry is Looking at Decreased Sales

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Although fall and apple season is approaching, cider/perry total volume sales declined by 12% in 2016, falling to 219 million litres in the US. This was the first fall since the meteoric rise in 2011 that saw volume sales rise from 50 million litres to 248 million litres in 2015. The decline in 2016 was attributable to a number of factors, including the consumer converting to hard sodas. This is because most consumers saw alcoholic drink as experimental and liked the sweetness of the cider/perry and the little taste of alcohol. Many departed and switched to hard sodas or a different alcohol. Yet, loyal cider/perry consumers continued to drive growth in the fragmented area of the market made up by craft and/or local producers. In the UK, the alcoholic beverage consumption is fairly equal between women and men. While in the US, younger consumers and women remain the core consumer bases for the alcoholic drink because of the cider’s refreshing and sweet taste. Cider/perry producers are making efforts to appeal to men in US. These efforts include using hops and drier apples. Some craft and/or local producers as keeping loyal customers though despite their higher prices.

Cider/perry is set to decline at an 8% CAGR in total volume over the forecast period. Euromonitor International expects a negative pressure on alcohol volumes to persist while previous consumers of cider move away to other products. Several factors may further worsen or conversely moderate volume declines. For example, a short-lived cycle of hard sodas, the primary recipients of former cider consumers, may allow cider/perry volumes to stabilize sooner than expected, while a more-lasting presence of hard sodas may lead to a more-sustained decline. Either way, loyal cider consumers are expected to remain, ensuring a base of volume consumption for these historic alcoholic beverages.

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