The strength and resilience of key markets coupled with brand owners’ swift response to changing market conditions is predicted to yield a CAGR of +1.5% in alcohol consumption from 2021-2025.
On a category level, the majority of growth in Scotch whisky – notably in the premium segment – is expected to be driven by the recovery in global travel retail, plus the key India market.
Total beverage alcohol declined by 6.2% worldwide in 2020, hammered by the near-complete shutdown of bars and restaurants.
However, the result was an improvement on the previous forecast decline of -8% made in November based on alcohol beverage consumption in 19 key markets and global travel retail.
Much of this was down to strong e-commerce sales (+45% to reach $2.9 billion), growth in the read-to-drink (RTD) vertical, a rise in at-home consumption and sturdy performances in the US and China.
Premiumisation is set to continue apace, continued IWSR Drinks Market Analysis, buoying the recovery in alcohol beverage consumption.
The firm estimates that total volumes for premium-and-above wines and spirits will lift by 25.6% in 2020-2025 (versus +0.8% volume growth over the same period for brands in low price tiers).