This regional briefing discusses value and volume market sizes, growth since 2016, channel distribution and company shares in the region. It analyses the huge impact of the COVID-19 pandemic, along with the performance of craft producers, sustainability concerns amongst consumers, premiumisation and the health & wellness trend. It also examines the post-pandemic recovery, popular future products and emerging trends.
This report comes in PPT.
COVID-19 had an enormous impact on beer value and volume sales in 2020. Restrictions associated with the pandemic meant that bars and restaurants were closed for significant proportions of the year. When hospitality venues were open, there were restrictions on factors such as table sizes, or earlier closing times.
The health and wellness trend was strengthened by the pandemic as people sought to avoid the consequences of contracting COVID-19. This impacted consumption habits, with non/low alcohol products seeing heightened demand, and some countries, such as Spain, seeing more moderate alcohol consumption.
Premiumisation in beer continued in 2020. Brands with a compelling brand story and an element of “authenticity” have become more relevant for consumers. Also, a luxury, attractive design to product packaging has become more important, as consumers seek to look stylish whilst drinking.
One of the industries most impacted by COVID-19 was tourism. Many countries within Western Europe that are reliant on tourism for income faced a significant drop-off in visitors to their countries in 2020. Given the amount this group spends in hospitality venues, this had a negative effect on beer sales.
Craft breweries faced tough time during 2020, due to the restrictions placed on hospitality venues, as craft producers rely on on-trade sales to a greater degree than the larger beer producers. Many small breweries did not survive the prolonged period of reduced sales, as events such as festivals were cancelled.
The online channel grew during the pandemic, as consumers often had no choice but to turn to e-commerce; however, the share of sales online remained low.
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.See All of Our Definitions
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