The duty free spirits market in Asia Pacific took a big knock in 2013 with sales down sharply by -4.4% according to new data from drinks analyst IWSR. However, the fall has been tempered by growth in Europe and the Americas.

 

Asia Pacific – previously very fast-growing – is under considerable pressure, largely as a result of austerity measures in China which have contributed to the -4.4% contraction in 2013 versus 2012.

 

Key markets in the region – including Singapore, South Korea, Thailand, Hong Kong, Taiwan and Malaysia – recorded a drop in volumes in 2013 says IWSR in its Duty Free/Travel Retail Summary Report 2014.

 

The Asian decline has resulted in the growth rate of the global duty free market slowing year on year, but this is the first time since 2009 – following the global financial crisis – that any region has seen a loss in volumes.

 

AMERICAS BOOST

The Americas market saw the best regional expansion, posting a +4.2% rise in volumes, with Latin America, the Caribbean and North America all enjoying healthy growth. The Americas’ share of the global market, at 19.7%, is now ahead of Asia-Pacific’s at 17.7%.

 

Growth also continued in Africa and the Middle East, with a +3% increase driven mainly by the expansion of the Middle Eastern market. Africa suffered the sharpest drop in sales last year, down -9.6% partly as a consequence of the downturn in tourism to Egypt because of political turmoil.

 

EUROPE IS STEADY

Sales in the largest regional market, Europe, grew more slowly in 2013 than in the previous year (at +1.5%), but the region increased its share of total volumes to 54%, reversing 2012’s drop in market share.

 

Eastern Europe/Baltics was the fastest-growing sub-region last year, posting a +9.7% increase in sales. A revival in tourism in southern Europe helped sales there rise by +2%, while central Europe and the Balkans also grew by +2%. Nordic and north-west Europe markets remain stagnant and saw a slight drop in volumes.

 

IWSR’s Duty Free/Travel Retail Summary Report is a global overview of duty-free trends from 2008 to 2013 and includes data by category, region, channel and quality, as well as rankings of the leading brands, suppliers, outlets and retailers.