In a decade the global consumption of alcohol fell by 0.7% in 2015. Last year 248 billion litres compared to the year before which was 249.7 billion litres leading to a drop of 1.7 billion according to market research done by Euromonitor. China, Eastern Europe and Brazil consumption of alcohol fell by 3.5%, 4.9% and 3.5% respectively. In North America the reverse was the case, consumption rate rose by 2.3%.
According to market research by Euromonitor Rum and Vodka were the most affected. Consumption of these drinks were the lowest compared to the rest of its competitors. Eastern Europeans are known for their high consumption of Vodka, Bourban and Tequila continue to have a steady growth while Cognac bounced back strongly. Cognac recorded an increase in both volume and value of 8.5% and 21.3% respectively according to Bureau Interprofessionel du Cognac (BNIC). Most of the consumption of Cognac is from North America leading with 13%, the huge success of Cognac boosted the performance of spirit by 0.8%.
Euromonitor’s senior alcoholic drink analyst, Spiros Malandrakis, discussed the importance of the millennial demographic and the importance of them to the industry. ” While terms such as authenticity and craftsmanship are losing traction, the trajectories of sophistication, moderation, perceived exotic credentials, accessibility and aspirational attributes to remain the key driving forces fuelling pockets of buoyancy”. Malandrakis said. Sourced from Investopedia.
In the market the alcoholic drinks with the highest growth are the English gin, Irish whiskey, Japanese Whiskey and dark non-alcoholic beer. It is no coincidence that drinks are gaining further momentum with their ever important millennial demographic in mature western markets.
Euromonitor forecasts, a 1.3% rise from 2015. Investors have always seen the alcohol industry as a good place to put their money in. Analysts predict that despite the fall in the consumption of alcohol in 2015, investors will still dive into alcohol industry.