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Slow growth for the alcoholic drinks industry

Editorial
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In 2014, total volume growth for the global alcoholic drinks industry remains subdued for a second consecutive year at 0.8 percent, reaching 252 billion litres.

According to the data released by market research company Euromonitor International, total alcoholic drinks volume in Australia is up 0.2 percent in 2014 to 2.8 billion litres.

Similar to the data released yesterday from the ABS revealing that Australia is drinking less alcohol overall than any time in the previous 50 years, the Euromonitor figures also reveal a downward trend in per capita consumption in Australia, despite the slight total volume growth.

When Euromonitor’s population figures (for 15-years-old and over) are compared with the pure alcohol and ready-to-drink products, they show the 2014 calendar year as the lowest year on record (since 2000) for both pure alcohol and ready-to-drink alcohol per capita consumption.

Euromonitor’s key findings

  • Internationally, the tradition from white to brown spirits continues as Bourbon, Irish and Japanese whiskeys steal the limelight from Scotch with spectacular volume rates of five, eight and seven percent respectively. In Australia, Japanese and Irish whiskeys are seeing strong growth, but single malt Scotch has also registered a notable performance.
  • In beer, craft offerings continue to rise across the globe while imported premium lager, ale and non-alcoholic variants were star performers.
  • Cider has continued its impressive performance in Australia, achieving 11 percent volume growth in 2014. Globally, Cider enjoyed solid total volume growth of nearly nine percent globally as Western European core markets take a back seat to growing North American success.
  • Champagne remains challenged in its core Western European market as other sparkling wines capitalise on its demise, but Australia has been bucking the trend. While volume growth has slowed in Australia, it’s still at 10.9 percent year-on-year in 2014.

“The seemingly unstoppable emerging market engine is beginning to stall,” says Spiros Malandrakis, Senior Alcoholic Drinks Analyst at Euromonitor International. “Geographic diversification—or lack thereof—remains one of the defining factors determining top line success or failure.”

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