Global spirits consumption set for steady growth by 2020

INTERNATIONAL. The global spirits market is forecast to grow by almost 122 million nine-litre cases between 2014 and 2020, surpassing 3.2 billion cases by 2020, according to new data from the IWSR.

The IWSR Forecast 2015-2020 Global Review indicates a steady rise in volume in the spirits category although its Compound Annual Growth Rate (CAGR) between 2014 and 2020 of +0.6% will be “noticeably slower” than the previous five-year CAGR of +3.6%.

The report states that growth is expected to be more conservative than previously due to many markets experiencing strong recovery of volumes in the aftermath of the global recession.

Asia, China and India are predicted to outperform all other markets, with growth in North America, Africa and the Middle East and the duty free market contributing to the category’s overall expansion, according to the IWSR Global Trends and Innovation Consultant Sophia Holliday.

Population growth and rising disposable income levels in many emerging markets will aid growth in spirits consumption, the report said, with mature markets such as the USA and the UK set to draw back some of the attention from less developed regions which have attractive opportunities for volume and value development.

Total annual consumption of whisky will rise to 467.4 million cases, overtaking vodka to become the second largest spirits category behind local spirits by 2020. Whisky and tequila are predicted to be the fastest-growing spirits categories, with a CAGR from 2014-2020 of +3.8% and +2.9% respectively.

Consumption of imported spirits is predicted to rise with a CAGR of +1.6% between 2014 and 2020, adding 37.5 million cases, with gin and tequila showing the fastest growth.

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