World Market for Alcoholic Drinks

Delivery

This report comes in PPT.

Key findings

A state of permacrisis takes its toll but green shoots are on the horizon

Geopolitical upheaval and inflationary spikes leading to an acute cost-of-living crisis inevitably derailed the short-lived post-pandemic boom and supressed performances across the board. First signs of a renewed if tentative recovery are now visible but significant downside risks remain. 

On-trade remains in positive territory but loses most of its post-pandemic momentum

Global on-trade volumes still stand 10% lower than their pre-pandemic peak, facing generational shifts in drinking patterns and the channel is the most vulnerable to any further economic or political shocks.

Premiumisation retains its overall relevance but first dents to narrative appear

While aspirational consumption and ever more sophisticated drinking patterns have proven to be remarkably resilient in the face of the cost-of-living crisis, signs of eclectic trading down and across and loss of some momentum for high-end offerings become visible.  

No/Lo, spirit-based RTDs and sparkling wine lead fastest growth segments 

The advancing and rapidly evolving mindful drinking trend, the latest iterations of the chameleonic RTD segment and the affordability credentials of other sparkling wine prove key against the backdrop of shifting lifestyles and economic headwinds. Conversely, champagne and cognac suffer for the same reasons.

Digital frontiers beckon

E-commerce - still comparatively underdeveloped and accounting for just 3% of global retail sales in 2023 - is now past the pandemic era-induced boom with growth rates moderating. However, its long-term strategic importance - and that of digital realms such as social media, or a myriad potential AI applications - will undoubtedly shape the industry’s future.