LONDON -- North America is proving to be the lone major market in the world that is seeing consumption of alcohol beverages grow as much of the world sees its economies falter.
New research by Euromonitor International shows global alcohol-drinks volume registered a decline of 0.7% in 2015, which puts it in negative territory for the first time in more than a decade. This translated into a loss of 1.7 billion liters of volume sales of alcohol drinks since 2014.
Historic growth derailed due to the influence of macro headwinds hitting China, which recorded a 3.5% decline in alcohol consumption, according to the research. Brazil and Eastern Europe showed further weaknesses, falling 2.5% and 4.9%, respectively. While Western Europe, Australiasia (Australia and neighboring islands) flatlined, North America’s 2.3% growth "provided a shot of optimism in an otherwise sobering global landscape," the report said.
“While terms such as authenticity and craftsmanship are losing traction, the trajectories of sophistication, moderation, perceived exotic credentials, accessibility and restrained yet grounded aspirational attributes remain the key driving forces fueling pockets of buoyancy,” said Spiros Malandrakis, senior alcohol drinks analyst for Euromonitor, London. “Premium English gin, Irish and Japanese whiskey, dark and nonalcoholic beer are the flag bearers of growth, and it is no coincidence that those also happen to be the segments gaining further momentum with the ever-important millennial demographic in mature western markets.”
Beyond those star performers, tequila and bourbon remained solid, while cognac bounced back strongly. Cider performed well but has softened as Americans move to hard-soda drinks. Rum and vodka find themselves among the worst performers, while still light white and red wine varietals, along with sparkling wines, are back to a healthy level.
“While initial forecasts suggest a gradual recovery from 2016, performance will remain substandard compared to historical trajectories," Malandrakis said. "It is not the industry’s vision that is impaired but rather the horizon that can be treacherous.”
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