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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    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.