Decline in global alcohol consumption accelerating

The rate of decline in global alcohol consumption is accelerating, according to the IWSR, with the global market for alcoholic drinks shrinking by 1.3% in 2016, compared with an average rate of 0.3% in the previous five years.

The overall global drinks market shrunk by 1.3% in 2016, according to the IWSR.

The IWSR noted that this decline was accelerating at a “faster rate than has been previously reported by other data companies”, including Euromonitor, which last month said the rate of decline had actually slowed to -0.2%, from -0.8% the previous year.

By category, consumption of still wine dropped by 0.5% in 2016, according to the IWSR, while the sparkling wine market grew 1.8%, driven by Prosecco.

Cider declined by -1.5% after years of solid growth, with this reversal blamed on declines in consumption in the South African and particulalry the US, where volumes dropped by 15.2% in 2016 after years of double-digit growth, dragging down the category as a whole.

Beer saw the biggest decline, with consumption dropping by 1.8% in 2016, compared with a five-year rate of -0.6%.

“The global trend is a reflection of developments in three of beer’s largest markets: China, Brazil and Russia, which all saw steeper declines than in previous years, declining at -4.2%, -5.3% and -7.8% respectively in 2016,” it said.

The global consumption of spirits painted a much more positive picture, achieving a slight growth of 0.3%. However vodka was blamed for “dragging down” the overall performance of spirits performance, declining by 4.3% last year. The decline in vodka was counteracted by healthy volume growth within the gin (+3.7%), Tequila (+5.2%) and whisky (+1.7%) categories.

“The negative trend in vodka is largely due to steep volume losses in Russia (-9.3%), which nevertheless remains vodka’s largest market by far,” the report explained. “Key growth markets for total spirits last year were China, the US and Mexico.”

Despite overall decline of global alcohol consumption, the IWSR predicts that this trend will reverse in the next five years, forecasting consumption to rise by 0.8% until 2021.

This will largely be driven by whisky, which the IWSR predicts will grow in volume to 650m litres by 2021. Global consumption of mixed drinks is expected to increase by more than 400m litres over the next five years, while sparkling wine is likely to add more than 220m litres. The IWSR also expects beer to show strong growth in many Asian and sub-Saharan Africa markets over the next five years.

Leave a Reply

Your email address will not be published. Required fields are marked *

Please note that comments are subject to our posting guidelines in accordance with the Defamation Act 2013. Posts containing swear words, discrimination, offensive language and libellous or defamatory comments will not be approved.

We encourage debate in the comments section and always welcome feedback, but if you spot something you don't think is right, we ask that you leave an accurate email address so we can get back to you if we need to.

Subscribe to our newsletters

Supply Chain Assistant

Speciality Drinks
London NW10 7SF, UK

On-Trade Regional Sales Manager

Anthony Byrne Fine Wines
West Midlands & Northants

Supply Chain Co-ordinator

Speciality Drinks
London NW10 7SF, UK

Logistics Team Leader

Speciality Drinks
London, UK

Key Account Executive

Berkmann Wine Cellars
London, UK

Assistant Operations Manager

Speciality Drinks
London, UK

Technical Manager

North South Wines
West Drayton, UK

Key Account Manager

MMI Maldives
Maldives

TERRITORY SALES MANAGER

Eurowines Limited
Harrogate, UK

Business Manager - Impulse

Australian Vintage
Croydon, UK

Exclusive Masterclass: Chablis on Tour

London,United Kingdom
29th Apr 2019

Vinexpo Bordeaux

Bordeaux,France
13th May 2019

London Wine Fair 2019

London,United Kingdom
20th May 2019
Click to view more

The Global Organic Masters 2019

Deadline : 19th April 2019

The Global Grenache Masters 2019

Deadline : 26th April 2019

Click to view more

The Global Riesling Masters 2018

View Results

Rioja Masters 2018

View Results

Click to view more