Global consumers continue to trade up, IWSR says

Consumers are continuing to trade up and experiment with premium and niche drinks, as well as blurring the distinction between the categories, a new global drinks report has found.

The report from the IWSR, said there was evidence of continuing premiumisation across the drinks trade, with consumers across the major markets trading up to higher-value drinks, as well as moving across a wide range of categories. As well as the well-established boom in craft production, it noted growth in niche categories including Japanese whisky, and more premium mezcals.

It also noted “further erosion of the boundaries between categories”, and said consumers were more adept at switching between them.

“Consumers are showing an increasing willingness to switch categories if another appears more dynamic or fashionable. This has led to migrations not only within spirits, but also in some cases between broader categories,” the report stated.

While recognizing the power of the millenials in established markets, the IWSR highlighted the increasing engagement of women in the drinks market in new and emerging markets, which was particularly strong across Latin America, Africa and Asia.

Other ongoing trends highlighted by the report include the growth of convenience and the rise in online sales.

The Global Trends Report is published every year by the IWSR, drawing on research on the drinks markets in more than 118 countries to present new, emerging and ongoing drinks trends across the world.