Decline in global alcohol consumption accelerating

1st June, 2017 by Lauren Eads

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 overal 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 IWST, 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.

Subscribe to our newsletters

Job vacancies

Sales Account Manager

Jascots Wine Merchants
London, UK

Marylebone Sales Manager

Philglas & Swiggot
Marylebone, London, UK

Area Sales Manager

Bon Coeur Fine Wines
North England, UK

Procurement Assistant – Wine

Adnams PLC
Southwold, UK

Account Manager Central London

Speciality Drinks Ltd
London, UK

Brand Ambassador

Speciality Drinks Ltd
London, UK

National Business Development Manager

Speciality Drinks Ltd
London, UK

Marketing Assistant

Hatch Mansfield
Ascot, Berkshire, UK

Marketing Manager

Bancroft Wines
London, UK

Regional Sales Manager – Scotland

Bancroft Wines
London, UK

Sales Manager – London On-Trade

Bancroft Wines
London, UK

Customer Service & Sales Support Executive

Jascots Wine Merchants
London, UK

Market Insight Analyst

Conviviality PLC
London, UK

Technical Manager

Enotria&Coe
Park Royal, London, GB

The Global Sparkling Masters 2017

Deadline : 25th August 2017

The Global Malbec Masters 2017

Deadline : 25th August 2017

Global Chardonnay Masters 2017

Deadline : 1st September 2017

The Global Sauvignon Blanc Masters 2017

Deadline : 1st September 2017

Click to view more

The Global Rosé Masters 2017

With wines from the palest of pink to almost ruby red, bone dry to almost cloyingly sweet, reductively handled to barrel-aged, as well as gently spritzy to fully sparkling.

The Global Organic Masters 2017

The drinks business is thrilled to announce the launch of The Global Organic Masters

The Drinks Business Awards 2017

Now in its 15th year, the db awards have become the most authoritative, internationally respected badge of achievement in the alcoholic drinks industry.

The Asian Cabernet Sauvignon Masters 2017

the drinks business Hong Kong announces its first year of The Asian Cabernet Sauvignon Masters.

Click to view more