Spirits: Onwards and Upwards

Spirits takes greater share of alcoholic drinks consumption

Between 2007-2017, spirits? share of alcoholic drinks consumption measured in Litres of Pure Alcohol will increase by 1.5 percentage points to nearly 39% of all alcoholic drinks consumed globally, and share of spend by 2 percentage points. This continuous shift is driven primarily by mature markets, as consumers move away from traditional alcohol products, particularly beer.

Premiumisation goes on

Across the globe, consumers are trading up to more premium products, which in emerging markets includes a shift from domestic products to more premium international spirits brands. However, in Western Europe, due to the economic difficulties in some markets, trading down is also apparent.

Asia Pacific and its local products drive growth

Emerging markets, led by Asia Pacific, are the key growth drivers in many categories. This includes local spirits such as baijiu, as well as locally produced products in categories such as rum and whiskies.

Consolidation on hold

Following Diageo?s acquisition spree to rebalance its geographic presence, further consolidation is likely to be on a smaller scale, as international companies all wait for the breaking up of Beam. Acquisition activity is likely to be led by Pernod Ricard, although its debt level prevents action before 2015.

Significant opportunities for international spirits brands

There are huge opportunities for expansion for international companies in emerging markets, as growing wealth in these markets makes their products more affordable. There are also opportunities in mature markets in untapped markets or new niches, such as super-premium gin.

What this report includes

• Top-level strategic analysis of how major consumer trends will influence global markets
• Consumer insight
• Impact across all relevant consumer markets
• Unique graphics and case studies
• Key market snapshots
• Accompanying presentation to synthesise main findings

Why buy this report

• Identify factors driving change now and in the future
• Understand motivation
• Forward-looking outlook
• Briefings and presentation should provoke lively discussion at senior level
• Take a step back from micro trends
• Get up to date estimates and comment