NEWS
IWSR: CHINA’S ALCOHOLIC DRINKS MARKET WILL GROW BY USD41BN IN NEXT 5 YEARS
By Susan Lewis
16-6-2023
Credit: Christian Lue/Unsplash
Global drinks industry research organisation, IWSR Drinks Market Analysis (IWSR), has predicted China’s alcoholic drinks market to grow by USD41 billion in value between now and 2027 in its latest report.
While the USA will deliver value growth of USD12bn during the same period.
India, Mexico and Brazil are expected to become main drivers of volume growth between 2022 and 2027, as the annual volume growth of the global alcoholic drinks market is expected to slow to just one percent over this period.
“The premium segments in the global travel retail channel will continue to regain market share as
the channel increasingly embraces the role of a high-end product showcase,” said Mark Meek, CEO of IWSR Drinks Market Analysis.
“The return of Chinese travellers will provide a significant boost, especially for more premium priced products,” he said
However, the cost of living crisis has lead to some down trading, particularly in the
standard and lower price tiers. This is most evident in parts of Africa, Latin America and
Europe.
“As geopolitical and economic turbulence impacts the market, alcohol drinkers are shifting
their consumption behaviours,” notes Meek.
By category, global wine volumes were down 5 percent in 2021-2022, and growth is expected to remain flat over the next five years, predicts IWSR.
The value picture is more positive, with 2 percent annual growth predicted in the premium-and-above segments 2022-2027.
Lower price tiers for wine will suffer as younger adults increasingly enjoy alternative alcohol options and drink higher-quality wines less frequently. That will lead to around 1 percent annual volume contraction in this segment in the next five years.
Meanwhile, the spirits category declined 2 percent in volume in 2022, largely due to low-priced baijiu in China.
However, excluding national spirits (which includes spirits such as baijiu, soju, arrack and
shochu), the global spirits category grew 5 percent in volume in 2022, particularly driven by
whisky (+8 percent), but also categories including rum (+9 percent) and brandy (+6 percent).
Global beer volumes grew 3 percent in 2022, buoyed by strong performance in markets including
India (+38 percent), Vietnam (+17percent), Mexico (+7 percent) and China among others.
Moving forward, beer is expected to continue to grow at just under 1 percent annually by volume in the next five years.
In China, premium beer will grow by 6 percent annually by volume vs 0 percent for lower price
tiers.
(the writer can be contacted at: info@thewinechronicle.com)
ALL RIGHTS RESERVED
**IF YOU THINK THE WINE CHRONICLE IS WORTH SUPPORTING, PLEASE MAKE A DONATION TO HELP US IMPROVE AND CONTINUE OUR WORK**
TRENDING│ FOCUS│ MISSION│ ABOUT US│ CONTACT
| 