Opportunities in the Global Spirits Sector: Analysis of Opportunities Offered by High Growth Economies
Global Spirits sector was valued at US$627.6 Billion in 2016 and is forecast to record a CAGR of 8.7% in value terms during 2016-2021. Asia- Pacific was the largest global market for Spirits, accounting for a 51.4% share of total value sales in 2016. Additionally, the region is forecast to record the fastest value growth at a CAGR of 12.9% during 2016-2021. A growing population of youngsters reaching the legal drinking age (LDA), improving economy, and the rising middle income population across APAC, MEA, and LATAM regions will remain the primary factors driving growth in the sector globally. With drinking viewed as a way to unwind & relax after a long day, the large working population worldwide will continue to support growth in demand for Spirits.
Value share of Spirits in the global alcoholic beverages industry is forecast to increase during 2016-2021, led by rising share in Asia-Pacific and North America. However, the value share of Spirits in the overall alcoholic beverages industry is set to witness a decline in the Middle East & Africa, Latin America, Western Europe and Eastern Europe, driven by growing share of Beer & Cider in these regions.
The top 10 high potential countries included Australia, South Korea, the UAE, Brazil, Chile, the US, Canada, Romania, France, and Germany. In Asia- Pacific, Australia emerged as the top high potential country with the largest risk-reward score, while the US emerged as the largest market in North America region. Romania is set to record the fastest CAGR of 5.8% during 2016-2021 in the Eastern Europe region, while Brazil represented the largest market in the Latin American region with a value share of 66.4% in 2016. Germany emerged as the largest market in Western Europe with a value share of 22.4% in 2016, while the UAE was the largest in the MEA region with a value share of 63% in 2016.
Global Spirits sector was dominated by brands based out of the Asia-Pacific region. South Korea based Jinro emerged as the leading Spirits brand in the global Spirits sector with a volume share of 2.6% in 2016. India based Officers Choice was the second largest brand globally with a volume share of 1.2%, followed by China based brands - Red Star Er Guo Tou (1.1%) and Niu Lan Shan (1%).
Hypermarkets & Supermarkets was the leading distribution channel for the global Spirits sector, with a volume share of 36.4% in 2016, followed by Food & Drinks Specialists with a 32.6% share of total volume sales. Large share of Hypermarkets & Supermarkets channel in the distribution of Spirits can be attributed to the developed organized retail industry in major countries, where most consumers prefer to buy Spirits.
The report Opportunities in the Global Spirits Sector report brings together multiple data sources to provide a comprehensive overview of the global Spirits sector as part of our global series. It includes an analysis on global Spirits sector with consumption analysis highlighted for all regions. The report also identifies high potential countries by region that have been identified by creating a risk-reward analysis with multiple parameters.
Companies mentioned in this report: Agave Loco LLC, Alberta Distillers Limited, Asbach Gmbh, Bacardi Limited, Bardinet S.A.S, Blavod Drinks Ltd., Bodegas Rey Fernando de Castilla, Bodegas Williams & Humbert, Brooklyn Gin, Brown-Forman Corporation, Camus, Carrington Distillers (Ont) Ltd, Jun, OAK POLAND General Partnership Jerzy Markiewicz, 3 Medronhos, AB Stumbras, AF INTERNATIONAL CORP, Agave Industries India Ltd., Agave Tequilana Prod. Y Comercializadores, S.A. C.V., Agropecuária Grande Sul Ltda, Aguardiente Llanero, Aivy Vodka, Akwawit-Polmos S.A, Diageo plc, Pernod Ricard and Brown-Forman Corp.
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