LONDON, August 25, 2015 /PRNewswire/ --
Recent research from The IWSR and just-drinks has identified the key markets and trends that will drive the spirits category in the years to come.
The report, entitled 'Future growth opportunities for global spirits', flags three main market opportunities: the emerging middle class in China, the Travel Retail channel and the US. At the same time, a group of emerging markets, including the four MINT countries - Mexico, Indonesia, Nigeria and Turkey - and three others - South Africa, Vietnam and the Philippines - also hold strong potential for spirits.
The report refers to the seven markets as the "Magnificent Seven".
While the Government crackdown on extravagant spending in China has hit the higher-end Cognac and Scotch whisky categories, the report suggests China's emerging middle classes offer "strong future growth prospects" for both segments as well as for other spirits. While the report suggested products such as ultra-premium and prestige Cognacs will not get back to their historic highs of 2011, premium Cognac "is acquiring an ever-greater significance off a small base" and, along with super-premium products, "is set to drive further growth to 2019".
The report adds that premium and standard Scotch are the "likely growth engines through to 2019", with the latter overtaking super-premium in 2014.
In the US, the report notes that economic and demographic trends are combining to offer a positive environment for spirits companies. In particular, whisky categories are expected to benefit but the report also states that the outlook for Cognac is also positive, while flavoured spirits will continue to be a growth area.
Indeed flavoured spirits is one of the category "hotspots", the report has identified, along with whisk(e)y, prestige brands and under-premiumised categories.
As an "epilogue", the report includes the growth in the craft sector as both a threat and an opportunity for international spirits companies. While the growth of craft spirits has been underpinned by the increasing popularity of locally-produced products and younger consumers eschewing big brands, it nevertheless offers opportunities.
"Countering the craft threat is a challenge for the major multinationals, but also a major profit opportunity," the report states. "For larger spirits companies, responses to the craft threat include brand development or acquisition; bearing in mind the risks associated with NPD, expect a number of craft brands to be snapped up by larger players in the near future."
For full details see the NEW Liqueurs report from just-drinks and The IWSR.
Established in 1999, just-drinks is the online resource for the global beverage industry, publishing around 20 news articles, analysis features and insights every working day. Under the direction of managing editor Olly Wehring, its experienced team of journalists, consultants and analysts provide a unique and comprehensive blend of reports and interpretation of the beverage industry, including key events, trends, interviews and research that are delivered to over 92,000 business executives per month.
Through its drinks industry analysis, research, news and CONSULT bespoke market research service, just-drinks offers insight into wine, beer, spirits, soft drinks, and bottled water industry developments, statistics and key supply-chain trends. For details of how just-drinks is helping decision makers make decisions, visit http://www.just-drinks.com
About The IWSR
The IWSR is the leading source of data and analysis on the alcoholic beverage market. The IWSR's database, essential to the industry, quantifies the global market of wine, spirits, beer and RTDs by volume and value, and provides insight into short- and long-term trends. IWSR statistics are used by all of the largest multinational wine and spirits companies, as well as many more local companies.
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SOURCE just-drinks.com / The IWSR