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ALCOHOLIC DRINKS
Global alcoholic drinks market declined in 2023 as consumers struggled
By our African Marketing Confederation News Team | 2024
Total volume declined for only the third time in 15 years, but good news is more demand for non-alcoholic products.
As consumers around the world battled various headwinds, the global alcoholic drinks market in 2023 saw a total volume decline for only the third time in 15 years.
Photo: Terricks Noah from Pexels
This is according to the ‘World Market for Alcoholic Drinks 2024’ report released by Euromonitor International. However, the data analytics firm points out that the decline is only 0.2%, and that the good news from a health perspective is that demand across all non-alcoholic drinks categories is booming.
Among the factors that impacted the alcoholic drinks market last year were geopolitical upheavals that hit consumer sentiment, inflation pressure in most markets, and a structural slowdown in the large Chinese market.
“The industry entered negative territory, a rare occurrence, highlighting the severity of the perfect storm facing it,” says Spiros Malandrakis, Head of Alcoholic Drinks Research at Euromonitor International.
Demand for cognacs and RTDs were down
Among the hard-hit sectors were cognacs (volume down 16.6%) and RTDs or ready-to-drink products (down 9.5%). These are drinks that are premixed and ready for consumption.
Adds Malandrakis: “As the no-alcohol and low-alcohol aisles and bar shelves get increasingly more crowded, opportunities in this segment will shift towards functionality, moving beyond brand extensions to embrace unique compositions that push the limits of experimentation, resonating strongly with younger Millennial and Gen Z demographics.”
Among the categories that resisted the downturn in demand was sparkling wine, which capitalised on consumers trading down from more expensive champagne.
Malandrakis said that both off-trade (retail outlets selling alcoholic beverages) and on-trade (bars, nightclubs, restaurants etc) performance had decelerated significantly, losing most of the previous momentum driving the post-pandemic bounce back.
You can access the ‘World Market for Alcoholic Drinks 2024’ report here.
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