Summary: Beverage Alcohol Industry Growth Drivers
Findings:
Developing markets like India, China, Brazil, and Mexico will be the main drivers of growth in the beverage alcohol industry over the next five years.
India and the US are expected to add the most value, with India showing a remarkable growth rate despite its smaller market size.
Mature markets like the UK, Japan, Germany, and Canada are experiencing stagnant or declining growth.
Consumer spending on alcohol remains subdued due to economic pressures like inflation.
India and China show strong positivity about personal finances and increased spending on alcohol, though China's growth is slowing.
Key Takeaway:
The beverage alcohol industry's growth is shifting towards developing markets, driven by factors like population growth and rising GDP.
Trend:
The trend is a shift in the beverage alcohol market from developed to developing countries.
Consumer Motivation:
In developing markets, consumer motivation stems from increased disposable income and a growing desire for premium and international brands. In mature markets, consumers are more price-sensitive due to economic pressures.
What is Driving the Trend:
Population growth and rising GDP in developing markets
Less stringent regulations in some developing markets
Economic uncertainty and inflation in mature markets
Who are the People the Article is Referring to:
Emily Neill, COO Market Research, IWSR
Marten Lodewijks, President of IWSR’s US division
Richard Halstead, COO Consumer Research, IWSR
Description of Consumers/Product/Service:
Consumers: Adults of legal drinking age in both developing and mature markets
Product/Service: Alcoholic beverages, including Total Beverage Alcohol (TBA)
Conclusions:
Future value gains in the beverage alcohol industry will heavily rely on developing markets.
Brand owners need to adapt to this shift and be prepared for higher levels of risk associated with these markets.
Mature markets will likely see slower growth or even decline in the coming years.
Implications for Brands:
Brands need to focus on expanding their presence in developing markets.
They should adapt their strategies to cater to the specific preferences and price sensitivities of consumers in these markets.
Brands should also be prepared to navigate the complexities and risks associated with operating in developing markets.
Implication for Society:
The growth of the beverage alcohol industry in developing markets can contribute to economic development and job creation.
However, it also raises concerns about potential increases in alcohol consumption and related health and social issues.
Big Trend Implied:
The global beverage alcohol market is undergoing a significant shift, with growth increasingly driven by developing economies. This trend highlights the importance of understanding and adapting to the diverse needs and preferences of consumers in different regions.
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