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Global Vodka Sales Decline Will Mask Premium Vodka Growth


News provided by

just-drinks and The IWSR

08 Feb, 2017, 08:00 GMT

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LONDON, February 8, 2017 /PRNewswire/ --

Global vodka sales are set for continued declines over the next five years, but prospects are brighter for premium-and-above price segments, says the joint Global Vodka Insights report from just-drinks and the IWSR featuring the latest full-year data available.

After sales fell by both volume and value in 2015, the Global Vodka Insights report predicts that all of vodka's top four markets - Russia, the US, Ukraine and Poland - will register further declines to 2021, leaving global sales at just over 440m cases.

While the US will be essentially flat over that timescale, Russia will hemorrhage more than 30m cases at a CAGR of nearly -2%, and Poland will lose 5m cases.

However, there are brighter prospects elsewhere, including the UK - Europe's fastest-growing vodka destination in 2015 - a resurgent Brazil and a basket of smaller but promising markets including Canada, Vietnam, travel retail and South Africa.

Much of the category's global decline will be focused on the lower end of the market, with premium-and-above volumes poised to grow by 3.3m cases over the 2016-21 period, led by the US and the UK.

"Globally speaking, vodka is pursuing a clear trend of premiumisation," the report notes. "While low-price and value sales are declining and the standard segment is flat, premium and super-premium sales are increasing."

In Central and Eastern Europe, vodka has been hit by a "perfect storm" of poor demographics, economic problems and a generational shift into other spirits categories - although it will remain the dominant "national spirit" in most of these countries for the foreseeable future.

Meanwhile, the US has come under pressure from the revival of interest in brown spirits, as well as the fall-out from "flavour fatigue", with consumers turning their backs on increasingly outlandish vodka flavours.

The overall trend for the category in 2015 was mixed, with volume declines in 23 out of the top 50 markets, including five of the top 10. South Africa is now vodka's biggest growth market, thanks partly to trading down from brown spirits, whereas in Vietnam, increased consumption is being driven by trading up from cheap local spirits.

Global Vodka Insights - market forecasts, product innovation and consumer trends, published in December 2016, can be purchased via the just-drinks research store.

About just-drinks.com 

just-drinks.com is the online news, insight and research portal for the global drinks industry. Our editorial team includes contributors from around the world, while our commentators comprise experts in their respective fields of beer, bottled water, soft drinks, spirits (both brown and white) and wine. Under the direction of managing editor Olly Wehring, we offer an impartial voice and are driven by our passion for the drinks industry.

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. The IWSR's unique methodology allows them to get closer to what is actually consumed and better understand how markets work. The IWSR conducts face-to- face interviews with 1,500 companies in 118 countries each year, with further input from 350 companies. The IWSR tracks overall consumption and trends at brand, quality and category level.

For further information and images please contact James Lawley, Public Relations at Aroq Limited on +44 (0)1527 573 606, email james.lawley@aroq.com

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