Since 2023, the global beverage alcohol market has navigated a complex landscape, marked by a one percent decline in volume but a two percent increase in value, as reported by the IWSR.
In a recent update, the IWSR noted cautious optimism for 2024, despite ongoing challenges stemming from previous years’ inflationary pressures. The market’s trajectory is expected to remain subdued until 2025, reflecting adjustments in household spending and regulatory landscapes globally.
The US market, traditionally robust, saw a historic decline of two percent in spirits volume, with notable exceptions in segments like tequila and ready-to-drink beverages (RTDs), forecasted to drive incremental value in the coming years.
Looking ahead, the IWSR anticipates a gradual recovery, forecasting a modest Compound Annual Growth Rate (CAGR) of one percent for both volume and value from 2023 to 2028. Key growth markets include India, China, and the US, contributing an estimated $30 billion in incremental value, followed by Brazil and Mexico.
The shift towards developing economies is evident, with significant volume growth observed in India and rising markets like Colombia, the Philippines, and Thailand, underscoring broader economic uncertainties and regulatory pressures.
Emily Neill, COO Research and Operations at IWSR, emphasized the need for companies to pivot strategies towards emerging opportunities, advocating for innovation and diversified geographic expansions.
Category-wise, premiumisation trends faced headwinds amidst financial pressures, particularly impacting spirits and wine segments. While premium beer showed resilience, beer volumes dipped one percent globally in 2023, offset by premium beer’s gains.
Wine volumes continued their decline, with rosé emerging as a bright spot, driven by its social appeal and aspirational branding. Conversely, the RTD category stood out with a two percent volume increase in 2023 and projected CAGR of three percent through 2028, buoyed by consumer demand for convenience and variety.
The report highlighted a burgeoning interest in non-alcoholic beverages, with categories like non-alcoholic beer, wine, and spirits posting significant growth in both volume and value. This trend reflects a broader consumer shift towards moderation and healthier lifestyle choices, influenced by regulatory measures and health awareness campaigns globally.
As the market adapts to evolving consumer preferences and regulatory landscapes, the beverage alcohol industry is poised for a nuanced recovery, driven by innovation and strategic adaptation to emerging market dynamics.
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