Emerging Markets and Premiumisation to Drive Global Spirits Market
The global spirits industry has proved to be recession-resistant with slowing economies not having any major impact on the overall growth of the industry. However, there has been some shift in the business and consumption trends.
For example, the ongoing economic slump has led to a shift from on-premise to off-premise consumption as off-premise consumption has proved more economical. Likewise, the aging population, particularly in the United States, has created above-average demand growth for spirits and wine.
Globally, the spirits industry is growing on the back of two importance factors. First, the emerging markets of Brazil, Russia, India and China (BRIC) witnessing strong ongoing momentum in spirits and wine consumption as a result of rise in discretionary spending of consumers. Secondly, the western markets, notably United States although slow is still well oriented.
Apart from the favorable demographics i.e. aging population, the shift in the consumption of alcoholic beverage – from beer to spirits and wine - is helping the growth of the spirits industry. Within the spirits business, the trend towards premium products has further helped the industry in value terms. Spirit markets have been premiumizing across the regions as premium consumers have more and more access to more sophisticated products and are aggressively willing to pay premium for higher quality brands.
2007 proved to be a remarkable year for the global distilled spirits market with strong growth in emerging countries and moderate progress in Western markets within a worldwide economic context of lower growth. In the year 2008 and beyond, despite of a difficult economic environment, emerging economies have witnessed a strong growth with significant moderate growth in other markets that will help the overall industry growth.
The report titled “Emerging Markets and Premiumisation to Drive Global Spirits Market” is an analysis of the major global economies that are witnessing growth and shift in consumption trends. Major trends in the various economies have been highlighted to give a better understanding of the functioning of the spirits industry in those countries/regions. Further, the competitive landscape in which major spirits companies like Diageo, Pernod Ricard, United Spirits and Brown-Forman operates has been analyzed.
For example, the ongoing economic slump has led to a shift from on-premise to off-premise consumption as off-premise consumption has proved more economical. Likewise, the aging population, particularly in the United States, has created above-average demand growth for spirits and wine.
Globally, the spirits industry is growing on the back of two importance factors. First, the emerging markets of Brazil, Russia, India and China (BRIC) witnessing strong ongoing momentum in spirits and wine consumption as a result of rise in discretionary spending of consumers. Secondly, the western markets, notably United States although slow is still well oriented.
Apart from the favorable demographics i.e. aging population, the shift in the consumption of alcoholic beverage – from beer to spirits and wine - is helping the growth of the spirits industry. Within the spirits business, the trend towards premium products has further helped the industry in value terms. Spirit markets have been premiumizing across the regions as premium consumers have more and more access to more sophisticated products and are aggressively willing to pay premium for higher quality brands.
2007 proved to be a remarkable year for the global distilled spirits market with strong growth in emerging countries and moderate progress in Western markets within a worldwide economic context of lower growth. In the year 2008 and beyond, despite of a difficult economic environment, emerging economies have witnessed a strong growth with significant moderate growth in other markets that will help the overall industry growth.
The report titled “Emerging Markets and Premiumisation to Drive Global Spirits Market” is an analysis of the major global economies that are witnessing growth and shift in consumption trends. Major trends in the various economies have been highlighted to give a better understanding of the functioning of the spirits industry in those countries/regions. Further, the competitive landscape in which major spirits companies like Diageo, Pernod Ricard, United Spirits and Brown-Forman operates has been analyzed.
1. INDUSTRY DEFINITION – BEVERAGE ALCOHOL INDUSTRY
2. GLOBAL DISTILLED SPIRITS MARKET
2.1 Market Size and Growth
2.2 Major Global Trends
Consolidation in the global spirits market
Premiumisation in the spirits category
Balance of on-premise and off-premise beverage alcohol sales
3. US DISTILLED SPIRITS MARKET
3.1 Market Size and Growth
3.2 Market Growth by Segment
3.3 Market Trends
Growth of imported distilled spirits
Growing presence of tequila-based drinks
Premiumisation – Growing consumption of premium spirits brands
Growing exports of spirits to developing countries
Consolidation and realignment of brands
Growing consumption of rum
Growing expenditure on spirits advertising
US demographics favoring spirits industry
4. UK DISTILLED SPIRITS MARKET
4.1 Market Size and Growth
4.2 Market Trends
Affluent consumers – Major buyers of wine
Spirits and cider – major growth categories
Advertising Expenditure – shift to Internet
5. RUSSIAN SPIRITS MARKET
5.1 Market Size and Growth
5.2 Market Trends
Premiumisation
Consolidation
Consumption trends of vodka
6. CHINESE SPIRITS MARKET
6.1 Market Size and Growth
6.2 Market Trends
Rising demand for French wine in China
Falling whiskey sales in China
China – a growing market for cognanc
7. INDIAN SPIRITS MARKET
7.1 Market Size and Growth
7.2 Market Trends
Offsite drinking more popular in India
Growing demand for Scotch whisky
Low penetration of international spirits brands in India
8. COMPETITIVE LANDSCAPE
9. LEADING COMPANIES
9.1 Diageo
9.1.1 Business description
9.1.2 Business Strategies
9.2 Pernod Ricard
9.2.1 Business description
9.2.2 Business Strategies
9.3 Brown-Forman Corporation
9.3.1 Business description
9.3.2 Business Strategies
9.4 United Spirits
9.4.1 Company description
9.4.2 Business Strategies
10. MARKET FORECAST
APPENDIX: Top 20 Vodka Brands: Ownership and Sales
LIST OF FIGURES
Global Distilled Spirits Market by Value: 2003-2007
Global Distilled Spirits Market by Volume: 2001-2007
Global Distilled Spirits Market: Value Share by Geography: 2007
US Distilled Spirits Market by Value: 2001 - 2007
US Alcoholic Beverage Industry – Percentage Share of Spirits: 2001–07
US Distilled Spirits Market: Share by Segment: 2007
US Distilled Spirits Market: Share by Price Segment: 2007
US Distilled Spirits Market Growth: Contributing Factors: 2004-06
US Distilled Spirits Market: Ad Expenditure: 2004-06
Shift to spirits in the US market by demographics: 1997 versus 2007
UK Alcoholic Beverage Market by Segment Share: 2007
UK Spirits Market Growth: 2001 - 2007
UK Spirits Market – Consumption per Person: 2001 - 2007
UK Alcoholic Beverage Market: Growth by Category: Jan’08-Aug’08
Russian Spirits Market: Comparison with other Countries - 2007
Russian Vodka Market Growth by Price Category: 2006/2007
Russian Spirits Market: Share of Top 5 Producers - 2007
Vodka consumption in Russia (US$ per capita): 2004-2007
Spirits Market Growth (Volume) in China: 2004-2007
Spirits Market Growth (Value) in China: 2004-2007
Spirits Market Growth (Volume) in India: 2003-2007
Global Market Share in premium spirits - 2007
Global Distilled Spirits Market by Value: 2003-2007
Global Distilled Spirits Market by Volume: 2001-2007
Global Distilled Spirits Market: Value Share by Geography: 2007
US Distilled Spirits Market by Value: 2001 - 2007
US Alcoholic Beverage Industry – Percentage Share of Spirits: 2001–07
US Distilled Spirits Market: Share by Segment: 2007
US Distilled Spirits Market: Share by Price Segment: 2007
US Distilled Spirits Market Growth: Contributing Factors: 2004-06
US Distilled Spirits Market: Ad Expenditure: 2004-06
Shift to spirits in the US market by demographics: 1997 versus 2007
UK Alcoholic Beverage Market by Segment Share: 2007
UK Spirits Market Growth: 2001 - 2007
UK Spirits Market – Consumption per Person: 2001 - 2007
UK Alcoholic Beverage Market: Growth by Category: Jan’08-Aug’08
Russian Spirits Market: Comparison with other Countries - 2007
Russian Vodka Market Growth by Price Category: 2006/2007
Russian Spirits Market: Share of Top 5 Producers - 2007
Vodka consumption in Russia (US$ per capita): 2004-2007
Spirits Market Growth (Volume) in China: 2004-2007
Spirits Market Growth (Value) in China: 2004-2007
Spirits Market Growth (Volume) in India: 2003-2007
Global Market Share in premium spirits - 2007
LIST OF TABLES
Types of Distilled Spirits
Top US spirits brands – by sales – 2007
Volume Growth in U.S. Tequila Market by Price Category
UK - Wine consumption by Socio-Economic Grouping
Russia – Growth in Income: 2004-2007
Spirits Shipped by the Top 10 Russian Producers - 2007
India – Demand for Scotch whisky: 2006-2007
United Spirits – Volume growth (%) of key brands (yoy)
Top 20 Vodka Brands – Global: Ownership and Sales – July 2008
Types of Distilled Spirits
Top US spirits brands – by sales – 2007
Volume Growth in U.S. Tequila Market by Price Category
UK - Wine consumption by Socio-Economic Grouping
Russia – Growth in Income: 2004-2007
Spirits Shipped by the Top 10 Russian Producers - 2007
India – Demand for Scotch whisky: 2006-2007
United Spirits – Volume growth (%) of key brands (yoy)
Top 20 Vodka Brands – Global: Ownership and Sales – July 2008
