Iwsr Global Trends Report 2024

Global Trends
Report 2024
© 2024 IWSR – For client use only. Not to be reproduced or resold without permission from IWSR
Contents
03 Executive Summary 42 Health and Ethics
07 Premiumisation 49 External Pressures
15 Evolving Lifestyles 58 Focus Markets
26 Digital and Tech 69 Focus Categories
34 Social Drinking 80 Appendix and Methodology
2 Global Trends Report 2024 © 2024 IWSR – For client use only. Not to be reproduced or resold without permission from IWSR
Executive Summary
Macro trends
Six global macro trends have been identified, with sub-trends that explore 2024’s key market drivers
Premiumisation Evolving Lifestyles Digital and Tech

Premiumisation is not as clear cut as before, with a High inflation resulted in cautious spending on alcohol. Ecommerce is recalibrating post-pandemic. Celebrity
complex array of factors at play; overall growth slowed Post-pandemic habits have become embedded, with and influencer endorsement continues, albeit with
in 2023, impacted by a tough economic environment many consumers moderating as a lifestyle choice slower growth, and AI tools are gaining traction
• Up-trading and premiumisation • Affordability and down-trading • Celebrities and influencers

• Cocktail culture • Selective consumption • Ecommerce and AI
• Less but better • Tourism reset • Convenience
• Moderation as a lifestyle choice
Social Drinking Health and Ethics External Pressures

On-premise has seen a soft reset, but still lags behind Moderation is being driven by a multitude of factors A difficult year with a complex array of external pressures
pre-Covid levels as consumers feel the economic strain beyond the primary health and wellness benefits saw pressure mounting on beverage alcohol companies
• On-premise reset • Health and moderation • Inflation

• At-home consumption • Supporting local • Geopolitical pressure
• Badge value • Ethical consumption • Legislative change
• Sustainability
Executive summary
TBA volumes declined by 1% in 2023, with RTDs the only category with positive volume growth; there is a
more optimistic value picture as TBA retail sales value grew by 2%
Slower premiumisation Lifestyles are evolving Ecommerce normalises

In a tumultuous economic landscape, premiumisation Global growth engines stalled in 2023, with US volume Ecommerce continued its post-pandemic correction in
prevailed, albeit it at a slower rate and in a more declines (-3%) and a muted performance in China. Post- 2023, with value down by a further 2% YOY. Evolving
nuanced way. Premium-and-above volumes increased pandemic, consumers are re-thinking their lifestyles behaviours, a slowdown in China, some on-trade
by 1% YOY in 2023; conversely, standard-and-below and relationship with alcohol; they are generally more recovery and a return to B&M retail resulted in
declined by -2%. selective, seeking more affordable options or down- declines. Celebrity marketing remains buoyant, but
trading. Moderation has taken root and is increasingly growth has slowed. Brands’ use of tech and digital
At a regional level, the deceleration was most a conscious choice made as part of overall lifestyle platforms is evolving to meet demand for convenience
pronounced in Europe. Overall, premium beer and a change. Tourism is recovering (GTR volumes are up and accessibility. AI tools are becoming more
vibrant cocktail culture supported the premium trend. +5%), but tourists are more cautious in their spending. widespread, but optimum application is yet to be seen.
On-trade reset Moderation movement Choppy waters

Despite something of a rebound, on-trade channel Moderation became more mainstream in 2023, with Global uncertainty was a major factor in 2023 as
share remained 4% lower than pre-pandemic. Inflation overall no-alcohol volume growth of +6% YOY. The inflation remained stubbornly high and geopolitical
and soaring costs – coupled with evolving consumer trend is no longer only driven by health and wellness, tensions endured; consumers reacted by exhibiting
habits and the rise of moderation – continue to mount with multiple drivers now at play. Beer is the dominant more caution. Regulatory legislation around alcohol
pressure. As a result, the intensity and frequency of category behind no-alcohol growth. Tougher legislation was more pronounced, with increased duty reinforcing
occasions have changed in the on-trade, and home around alcohol consumption is also a contributing the moderation theme. Sustainability initiatives are
settings are more often chosen simply because it is factor for this trend. increasingly taking centre-stage on company agendas.
more cost-effective to drink off-premise.
Key recommendations
Navigating an ever-diverging consumer landscape will require an agile approach
PREMIUMISATION EVOLVING LIFESTYLES DIGITAL AND TECH
Understand evolving trends Expand consumer profiling Strike the right balance
Premiumisation will not be as clear cut over the next Understanding shifting motivations, changing habits Delivering convenience and speed remain key in
few years in the face of economic headwinds. Brand and how moderation as a lifestyle choice unfolds will ecommerce. Brand owners should focus on loyal clients,
owners should continue to invest in tracking consumer be imperative. Monitoring price sensitivity as well as not transient consumers; US and China will remain key
sentiment and selling an ‘experience’. Understanding demand for premiumisation will require a balanced markets, but developing markets in other regions may
how younger cohorts approach alcohol should be given approach. Brand owners should explore demand for offer more rapid growth. Managing messaging and
particular attention. Tapping into the dynamic cocktail both larger and smaller pack formats in the off-trade understanding social media dynamics remain critical to
culture may bolster growth. (to provide lower out-of-pocket and price per ml). brand positioning. AI is evolving fast: monitoring best-
case usage is a must.
SOCIAL DRINKING HEALTH AND ETHICS EXTERNAL PRESSURES
Adapt to evolving occasions Advance moderation agenda Embrace risk and uncertainty
Understanding new channel dynamics and changing As moderation becomes more mainstream, brand Navigating and understanding the complex array of
occasions remains critical. Late-night venues should owners need to understand how they can compete. external global pressures will be essential to mitigate
explore lower-tempo options. Having a cocktail offering Focusing on developing markets, specifically South risk. Brand owners should carefully monitor legislative
and attractive no/low options is important, as is America and Eastern Europe, may present changes and their impact on beverage alcohol.
providing customised experiences for at-home opportunities. Sustainable and wellbeing credentials Sustainability initiatives should be central to operational
consumption. should be highlighted as consumer demand for these planning as the effects of climate change intensify.
attributes grows further.
Premiumisation
Premiumisation
Up-trading and premiumisation
Premium-plus growth slows down and becomes more multi-
faceted in the face of economic headwinds
Cocktail culture
Cocktail culture continues to grow and expand into new
occasions as consumers become more discerning
Less but better

Consumers increasingly choose quality over quantity with a
more mindful attitude towards the consumption experience
| PREMIUMISATION OVERVIEW
Overview: Premiumisation
Premiumisation slows down and remains complex due to the evolving macro environment, changing
consumer habits and brand-owner innovation
Premium+ vs Value/Low-price BWS1 Volume Growth (2022–23)
Premiumisation prevails
Americas Europe
Premiumisation remains a key driver of demand and
Premium+ +0.5% Premium+ -2.1% has demonstrated remarkable resilience, with Africa
Value/Low-price -5.1% Value/Low-price -3.5% and the Middle East witnessing a volume increase of
4.4% YOY in the premium BWS1 segment. However,
the trend is not entirely immune to external pressures.
Consumers are now re-evaluating their spending habits
in the face of prolonged financial strain, leading to a
slowdown in premiumisation rates.
Despite considerable challenges, embracing

premiumisation remains a sensible future strategy for
many players. Relevant trends are firmly embedded in
the spirits category, namely the focus on quality over
quantity linked to wellbeing concerns, aspirational
Africa and Middle East Asia-Pacific consumption, and demand for heritage and authentic
brand stories.
Premium+ +4.4% Premium+ 2.4%
Value/Low-price -0.2% Value/Low-price -4.1%
1BWS (Beer, Wine, Spirits)
| PREMIUMISATION IN DEPTH
Up-trading and Premium+ Global Volume Share (2019–23)*
premiumisation 18%
Premiumisation patterns vary between markets
owing to varying economic circumstances 16%
Enduring premiumisation trend impressive 163% in volume, driven by 14%

the demand for high-quality, higher-
In mature markets, premiumisation priced expressions. The rise in at-home
appears ingrained in consumer 12%
consumption has further fuelled this
purchasing behaviour, while emerging trend. India’s home-grown spirits are
markets are seeing evolving making waves, driven by a curious and 10%
premiumisation trends in specific increasingly affluent young and
categories. Despite high inflation and expanding population seeking quality
soaring interest rates impacting and unique, premium experiences. 8%
discretionary spending, the beverage
alcohol industry remains modestly Smart spending
robust after the pandemic-era boom. 6%
As a response to the current cost-of-
Premiumisation in India living challenges, there’s a growing focus
on ‘smart spending’ by consumers trying 4%
The Indian whisky market has been to make the most of their disposable
undergoing a significant transformation, income. Beer enthusiasts are embracing 2%
marked by a strong trend toward so-called ‘accessible premiumisation’ –
premiumisation and distinctness. Both seeking out beers that offer higher
domestic and imported brands are quality at a more economical price point 0%
contributing to this shift. relative to premium spirits. Consumers 2019 2020 2021 2022 2023
are also up-trading their on-trade
Since 2019, premium-and-above whisky
experiences, allowing premium beer to Beer Spirits Wine
in India has surged, growing an
outperform premium spirits.
*Excludes Global Travel Retail (GTR)
Cocktail culture Global RTD Cocktails and Long Drinks* (2019–2028F)

Volume (Millions 9-litre Cases)
The blend of tradition, creativity and a thirst for new 250

experiences keeps cocktail culture thriving
Consumption settings evolving Seeking familiarity

200
The beverage-alcohol landscape is Retro-revival cocktail trends involving
evolving to accommodate various the comeback of classic drinks that are
occasions and settings. Cocktails now fun and indulgent, have been gaining
appear in a diverse array of venues, significant traction. These cocktails are
from music festivals to cafés and not only celebrated for their nostalgic
150
country clubs, and are no longer charm but also provide a creative outlet
confined to urban areas. This trend is for bartenders, who can put their own
facilitated by the availability of canned spin on the original recipe with trending
and pre-batched RTD cocktail options, ingredients and flavours.
allowing for convenient sipping in
100
different social contexts. It also enables Rise of spritzes and highballs
consumers to savour and experiment
with quality cocktails without the need The spritz serve (popularised by the
to invest in an entire bottle of spirit. Aperol spritz) is gaining ground; the
trend now spans many interpretations,
In the on-trade, cocktail-pairing menus including wine and gin spritzes, 50
are gaining popularity. Like wine-pairing showcasing its versatility. This shift
dinners, these involve a sequence of towards lighter, lower-alcohol options
courses, each thoughtfully paired with a appeals particularly to Gen Z drinkers. In
meticulously crafted cocktail to enhance South Korea, the spirits market has seen
the meal. Street drinking in markets a surge in whisky demand, driven by the 0
such as Greece has further helped to highball trend. 2019 2020 2021 2022 2023 2024F 2025F 2026F 2027F 2028F
boost convivial cocktail culture.
*Excludes GTR
Less but better Spirits* Performance by Price Band (2023–28F)

YOY Volume Change 2023 (%) | CAGR 2023–28F (%)
Consumers are not only focusing on health, but also 5%
prioritising quality and experience over quantity Chart KIV
4%
Shifting consumer preferences each bottle resonate with this audience.
The very top end of the market was It’s about selling an experience – a
better insulated than the more unique, innovative and authentic story 3%
mainstream premium segments against that adds depth to the drinking
broader economic challenges. experience and fosters a connection
between consumer and product. For 2%
Beyond short-term economic worries, these consumers, understanding the
the long-term driver remains the focus history and background of a drink
on quality over quantity – with enhances its enjoyment and meaning.
consumer interest in origin and artisanal 1%
details still a significant factor. Selective consumption
Investing in the experience While some consumers are down-

trading, others are more selective in their 0%
The rise of mindful drinking and growing consumption and recognise that a higher
number of ‘sober-curious’ consumers price often means better ingredients,
has influenced alcohol consumption meticulous production processes, and a -1%
patterns. Younger generations are superior product overall.
drinking less as they prioritise holistic
wellness and health. For them, quality The shift towards ‘less but better’ has been
matters more than quantity when it particularly evident in Ireland, Poland, -2%
comes to alcohol. France, Brazil and Chile during 2023. Value and Below Standard Premium Super-Premium+
Brands that offer high-quality flavour

YOY Volume Change 2023 CAGR (2023–28F)
profiles and share their values alongside
*Excludes National Spirits
| PREMIUMISATION CASE STUDIES
The value of authenticity

Up-trading and premiumisation Consumers are
increasingly seeking out better value and brands
that have a unique story to tell
Budweiser Brewing APAC has been expanding its retail offering of premium-plus
beers to new regions in China. In 2023, the company ramped up the retail
distribution of brands like Corona and Blue Girl to more Chinese cities as consumers
seek out little luxuries amid the slowdown of the Chinese economy.
Premiumisation is a key part of AB InBev’s strategy in China, and the company aims
to expand to more than 250 cities nationally by the end of 2025.
Champagne Drappier has also benefitted from the consumer quest for boutique
brands that are independent, unique or niche, with demonstrable authenticity
behind them. Champagne Drappier, which is certified organic, is largely
characterised by the influence of pinot noir and has Cistercian heritage dating back
to the 12th century.
Drappier states it is the first carbon-neutral Champagne house. Domestically, it has

outshone the category despite an array of macro factors. The brand’s key focus
markets are the UK and South Korea in particular.
The IWSR Opportunities in Sustainable, Organic and Alternative Wine* report

identified South Korea as the fifth-largest market for organic wine.
Image: www.douyin.com. *Opportunities in Sustainable, Organic and Alternative Wine 2024 (see page 84 for details)
| PREMIUMISATION CASE STUDIES
Premium craft cues

Up-trading and premiumisation Consumers are
showing a growing preference for more refined and
higher-quality options; brands are responding by
introducing better ingredients and experiences
Cambodia’s first premium boutique distillery, Samai is known for hand-crafting some
of the best premium rums in the region. The brand’s current product line-up spans
four expressions, all made with Cambodian molasses: White Rum, Gold Rum,
Kampot Pepper Rum, and PX Rum Liqueur.
The Gold Rum is infused with a hint of locally sourced organic honey, which adds
sweetness and creates balance, while the Kampot pepper is locally sourced and
native to Cambodia. Considered one of the most aromatic and delicate peppers in
the world, Kampot pepper gives the rum hints of guava and eucalyptus. The brand’s
careful selection of raw ingredients aligns with consumers’ increasing awareness and
preference for transparency about the origins of ingredients, as well as emphasising
the use of organic materials and high-quality local produce.
Samai transforms its distillery into a bar in the evenings. While initially frequented by
western expatriates and tourists, the establishment has seen a shift, with local
patrons now frequenting the venue. The Khmer community has traditionally had a
strong affinity for whisky and beer. However, with the rising trend of premiumisation
and the exploration of new tastes, premium craft spirits are growing in popularity, in
turn nurturing more discerning drinking habits. The rise of local craft spirits has also
instilled a sense of national pride among the Khmers, as the high-quality spirits
produced reflect the excellence of their country.
Image: www.samaidistillery.com
Evolving Lifestyles
Evolving Lifestyles
Affordability and down-trading
High inflation leads consumers to down-trade and seek more
affordable options
Selective consumption
Cost-conscious consumers are ever-more mindful about what, when
and how much they drink
Moderating
Alcohol moderation continues to gain traction with consumers
increasingly moderating as part of an overall lifestyle choice
Tourism reset
Recovering global tourism; key tourist destinations benefit from a
boost in footfall but muted performance in China
| EVOLVING LIFESTYLES OVERVIEW
Overview: Evolving Lifestyles

As normal life resumes and international travel recovers, consumers are reassessing their lifestyle
choices, moderating both alcohol intake and alcohol spend, with a noticeable impact on tourist markets
Recalled Changes in Consumer Sentiment
Net Scores (T15 Market Average)
Best quality for budget

Changing times
Look for the best quality
Look for the cheapest
for my budget
34 41 Economic pressures have prompted consumers to
reassess their spending priorities. Some are reducing
Interest in no-alcohol alternatives to alcohol beverages their alcohol purchases or exploring more cost-effective
options for specific occasions, whether through different
Uninterested Interested products or channels. In the Americas, Africa and the
-17 -11 Middle East, volume growth fell into negative territory vs
Adapting to changes of past year 2022 at -1.2% and -2.6% respectively. Others are being
29 more selective or down-trading.
Struggling to adapt Adapted well
The evolving macro landscape over the past few years
26 has led to the development of new habits and
Alcoholic beverages preferences becoming embedded, including having
fewer social/drinking occasions and drinking less per
Spending less Spending more occasion, with lower frequency and intensity. With
-7 -1 tourism nearly back in full swing, alcohol tourism is on
the rise. Footfall in GTR is almost in line with pre-
T15 Average 2023* T15 Average 2024*
pandemic levels, but the consumer has evolved and is
more digitally competent, skewing younger and female.
Source: Bevtrac 2024 Consumer Insights: Wave 1. Base: Drinkers population. Net scores calculated by subtracting the % who agree with the statement on the left from the % who agree with the statement on the right. Tracking arrows (/) are
shown for YOY scores with a difference of 7+ percentage points (pp). References in this context are to the 15 markets within the Bevtrac universe (T15) – see page 83 for details of market scope. *2023: April; 2024: March
| EVOLVING LIFESTYLES IN DEPTH
Affordability and Recalled Changes in Volume and Spend
down-trading
Net Scores by Category (T15 Market Average)
Recalled Volume Change Recalled Spend Change
Less More Less More

The tough global economy has resulted in a -7
complex array of consumer down-trading methods Total Spirits
-10 -9 15
Impact from economic headwinds consumers switching to cheaper local -5

spirits mostly in sachets (+27% volume) Beer
In 2023, economic pressures persisted from beer (-21% volume) as they were
due to high inflation. Geopolitical -9 -17 5
more affordable.
uncertainty further intensified the
challenges faced by brand owners, with Consumers also adjusted their alcohol 0
the increased costs being passed on to purchasing habits by opting for private RTDs
consumers. Sales were impacted as label, particularly in RTDs (+17% in -1 -14 6
consumer sentiment was dented and volume in 2023), and looking for more
purchasing power declined. Given all affordable brands, trading down within
these factors, discretionary spending on their usual brand lines, or buying on 0
alcohol is expected to remain subdued. promotion. Promotion-driven buying Total Wine
was notable in Germany in particular. -4 -13 11
Increased price-sensitivity
Ultimately, the consumer spending
During difficult economic periods, habits seen during the pandemic have
consumers naturally become more Total No-Alcohol
proved unsustainable. As the market
price-sensitive, often choosing cheaper recovers, recalled spend is trending 14 32 -14 12
alternatives and down-trading from negative, except for no-alcohol.
premium products to more affordable
options or more affordable categories.
In Nigeria, the increased cost of beer Source: Bevtrac 2024 Wave 1 Executive Summary. Base: Drinkers population. Net scores calculated by subtracting the %
bottles and associated price rise saw of Drinkers who recall drinking/spending less in the past six months from those who recall drinking/spending more.
Tracking arrows (/) are shown for YOY scores with a difference of 7+ percentage points (pp). *2023: April; 2024: March
Selective consumption
Consumers are more mindful about how they consume alcohol, giving more consideration not only to the
quantity but also to cost and frequency
Pursuing value in the on-trade Pre-mixed cocktails benefitting
The cost-of-living crisis has prompted changes in the Many consumers also prefer to start drinking earlier at
alcohol consumption habits of many. While at-home home to save money before heading out. The surge in
drinking remains popular, there’s a renewed interest in ready-to-drink cocktails has been a positive
going out, albeit with reduced frequency and intensity. development for the industry, rejuvenating the
Happy hours are gaining in popularity as a way to category and contributing lots of innovation. Spirits-
socialise while saving money on food and drinks. based products, such as vodka- and tequila-based hard
seltzers, provide consumers with a slightly more
Restaurant traffic during early evening hours has premium experience as quality credentials play an
surged compared to last year, and people are increasingly vital role for more discerning consumers.
prioritising value when dining out. Some restaurants, RTDs also give consumers easy access to a wide
aiming to boost earnings, have adopted barbell pricing portfolio of drinks.
strategies (which simultaneously promote both lower-
priced options and more premium items), thus Despite their premium price per serve compared to
appealing both to the more price-sensitive customers buying a full-size bottle of spirits to mix drinks at home,
as well as those with more disposable income. Many RTDs provide lower upfront costs and unmatched
venues are also increasing their drinks offerings to convenience and portability for on-the-go consumption,
span cocktails to entice customers who may seek an whether in home settings or out and about.
indulgent treat but in smaller quantities.
Tourism reset (1/2)

International tourism is recovering in most regions but the anticipated rebound in China was muted,
impacting total beverage alcohol consumption
Recovery of International Tourism (2022–Q1 2024)
Growth of International Tourist Arrivals vs 2019 (%)
Diverse tourism growth patterns across markets
Despite outbound travel in most parts of the world

returning to pre-pandemic levels, the anticipated
rebound did not occur with Chinese travellers as they
shifted their focus to domestic tourism. The impact of
Asia-Pacific this was acutely felt in South-east Asia, where China is a
key source of inbound tourism. China’s international
2022 -75%
Americas 2023 -34% travel recovery in 2023 remained sluggish, primarily
2022 -28% Q12024 -18% due to visa restrictions and the high cost of flights.
2023 -9%
Contrary to this, some markets experienced record-
Q12024 -1% Middle East
breaking tourism in 2023, with the top four markets
2022 -4% France, Spain, US and Italy all seeing double-digit growth.
Europe 2023 +31%
2022 -17% Q12024 +36% The conflict between Russia and Ukraine has seen an
2023 -4% Africa increase in Russian tourists visiting countries such as
World Q12024 +2% Thailand, Indonesia, UAE and Turkey, as travel to
2022 -29%
2022 -33% Europe has become more difficult due to travel bans in
2023 -3%
2023 -11% some countries, along with issues with visas and less
Q12024 +5%
Q12024 -3% flight availability.
Source: UN Tourism Recovery Tracker 2024
Tourism reset (2/2)

Tourism has seen a recovery, but travellers are now more cash-strapped and price-sensitive. The rising
cost of flights and rooms has driven consumers to approach alcohol differently
GTR Volume by Major Region (2019–23)
Volume (000s 9-litre cases)
40,000
Economically discerning travellers
35,000
• Cross-border travel is steadily rebounding as the
world recovers from the pandemic. Escalating living
30,000
costs are prompting people to prioritise essentials
and explore off-peak travel times.
25,000
• Additionally, some tourists are avoiding countries
20,000 with stronger currencies, opting for destinations
where their money stretches further. Despite
tourism rebounding, many tourists are arriving with
15,000
less disposable spend for alcohol as the cost of travel
and accommodation remains high.
10,000
• Conversely in GTR, volumes were 18% lower than
5,000 2019, but value was 14% higher in 2023. Value
growth is being driven by a resilient premiumisation
0 trend, attributed to both consumer choices and
2019 2020 2021 2022 2023
supplier strategies. Despite consumers upgrading,
they are also demanding good value, with a rise in
DF Europe DF Americas DF Asia-Pacific DF Africa and Middle East promotional activity seen in premium-plus tiers.
Moderation as a No-Alcohol Penetration of Drinker Population by Market (T15)
lifestyle choice
Proportion of Drinkers Who Consume No-Alcohol Products (%)
In a dynamic environment, consumers, particularly 39%

38% 38% 38%
Gen Zs, are increasingly moderating as part of an
overall lifestyle re-evaluation 32%
29%
In recent years, consumer decision- Eastern Europe. APAC, Latin America,
making has evolved in line with a dynamic Europe and South Africa show growth in
24% 24% 24%
and rapidly changing macro environment ‘lighter’ consumption year on year.
in which they have had to grapple with Consumers are moderating not only for 21%
20%
new extenuating circumstances. economic and health reasons, but as a
18%
lifestyle choice, choosing to drink on
The global pandemic helped to further special occasions only and place a
consumer knowledge around raw greater focus on their health and 13%
material costs, ingredient sourcing and wellbeing, both physical and mental.
manufacturing processes prompting
many to reassess their relationship with Venues have tried to cater to these new
alcohol. Increased costs also resulted in trends, with more bars in the UK 6%
consumers being more sensitive to offering smaller serving sizes such as
pricing and looking to other experiences carafes, and half bottles of wine in Italy
for entertainment. becoming more readily available. ‘Zebra
striping’ is another ‘mindful’ mechanism
Though initially a reaction to external consumers have adapted, whereby T15 Average Spain Germany India China UK US
factors, many of these behaviours have drinkers alternate between full-strength
stuck. This is especially pronounced 2023* 2024*
and non-alcoholic drinks on a night out.
among Gen Zs, as the stigma around
Source: Bevtrac 2024 Wave 1 Executive Summary. Base: Drinkers population. / = Statistically significantly higher/lower
not drinking has significantly diminished than 2023 at a 95% confidence level. A control question was added to the August 2023 survey to validate no-alcohol
– a trend now becoming more evident in consumption for a more accurate read. *2023: September; 2024: March
| EVOLVING LIFESTYLES CASE STUDIES
RTDs offer cheaper trial

Affordability and down-trading RTDs are stepping
into the spotlight, providing the option to enjoy
premium spirits at a fraction of the bottle price
By offering a lower upfront cost, RTDs have helped to serve as a crucial entry point
for consumers, particularly those who may be more price-sensitive and do not want
the initial outlay of a full bottle of spirits or wine.
Responding to the demand for more affordable option, Polish company Maspex
launched Żubrówka Soda Żu, an RTD version of its popular Żubrówka vodka, hoping
to capture consumers seeking more affordable options in a convenient format. The
RTD is flavoured with apple and bison grass, a key flavour profile within the company
portfolio.
This trend is widespread, with Diageo’s vodka brand Cîroc adding canned RTDs to its
range in the UK in February 2024. The brand’s new launches are based on its
bestselling flavoured spirits, Cîroc Summer Citrus and Cîroc Tropical Passion. Cîroc has
positioned the RTDs as an ‘affordable indulgence’, tapping into the brand’s premium
credentials. Its goal is to appeal to consumers who are ‘on the go’ and elevate
occasions such as barbeques, picnics and festivals with a more premium offering.
Image: www.ciroc.com
Tourism and alcohol

Tourism reset Consumers seek more affordable
options on holiday and remain cautious with spend
In Turkey, tourism experienced record-breaking figures in 2023. According to the

Turkish Statistical Institute, the country welcomed 50 million tourists last year – five
million more than the all-time high reported in 2019.
Despite hyperinflation and tax increases in Turkey, TBA managed to grow by an

impressive 8% in volume terms in 2023. The depreciation of Turkish currency has
made it a more affordable destination for some European nationals grappling with
the high cost of living, and booming Turkish tourism has helped to strengthen
imported categories such as tequila and gin.
As wine becomes more expensive in the country, consumers are seeking more
affordable drinks and switching to gin in particular. The spirit’s growth has attracted
new entrants to the market, such as UK brand Langley’s Gin. Increased tourism has
also supported the growth of raki, which heavily skews towards the on-trade.
In other tourist markets such as Egypt, local value vodka has experienced growth due
to tourism, particularly with the return of Russian and Eastern European tourists,
and as a result of weakened spending abilities among Egyptians.
The recovery of tourism has also boosted the growth of the wine category in Thailand.
Australian wines offer particularly good value for money there, and volumes grew 7%
year on year.
Image: www.thespiritsbusiness.com
Formats for tasting

Moderation as a lifestyle Consumers are adopting
the ‘less is more’ philosophy, and brand owners are
leveraging the trend by offering smaller pack sizes
As consumers increasingly choose to moderate their alcohol intake, there has been a
notable trend towards smaller pack sizes, allowing consumers to enjoy the same
premium beverage but in reduced volumes.
One brand owner that has tapped into this is Naked Wines. For tasting events, the
company provides 100ml pouches which are sent to consumers via post. It also
recently introduced a popular Advent calendar featuring samples, a product that
enjoyed phenomenal success.
In the UK, Marks & Spencer has also reported that sales of its 25cl wine bottles grew
by nearly a third in a year, with canned wines experiencing similar growth at 30%.
Legal changes are also supporting this shift, with the UK government allowing wine
to be sold in new sizes from 2024.
Image: www.nakedwines.com
Digital and Tech
Digital and Tech
Celebrities and influencers
The role of celebrities and influencers in marketing remains popular,
but there are signs of a slowdown in growth
Ecommerce and AI
Post-pandemic normalisation in ecommerce as consumer behaviour
diverges and there is a return to the on-trade and B&M outlets; AI is
gaining traction
Convenience
Digital platforms are extending reach for brand owners and catering
to demand for convenience
| DIGITAL AND TECH OVERVIEW
Overview: Digital and Tech

Advancements in the digital space and in the technology that supports it are transforming how beverage
alcohol companies operate, market their products and interact with their customers
Ecommerce TBA Value (2022–23)
YOY Growth (%)
The digital opportunity

Americas Europe
Innovations in digital technology present significant
+2% -4% opportunities but also challenges for the industry. From
the use of AI in enhancing operational efficiency, to D2C
platforms that bypass traditional retail channels and
enable brands to achieve global reach, leveraging these
innovations effectively can provide a competitive edge.
Globally, ecommerce has slowed post-pandemic with

the return to B&M and on-trade outlets, but modest
growth is now expected. Though the current consumer
landscape has heightened the importance of value,
convenience and speed are still key – striking this
balance is a challenge for brand owners.
Africa and Middle East Asia-Pacific Celebrities and influencers continue to play a
significant role in shaping trends, especially for
-8% -4% younger LDA+ consumers. Brands must navigate this
arena responsibly to mitigate potential risks such as
alienating target demographics.
| DIGITAL AND TECH IN DEPTH
Celebrities and Global Growth of Celebrity Brands1 by Category
influencers
Volume Growth vs Global Category Growth (%)
CB = Celebrity Brand
T = Total
In the digital era, leveraging star power remains a
40%
powerful tool in shaping popular culture
32%
Health and local positioning Slowdown in growth
Big brewers are increasingly Celebrity brands continue to grow and

collaborating with famous athletes and enter the market, but the rate has
sports events to promote their no/low slowed from 2022. Endorsements in
portfolios. A notable example is the tequila and rum grew in 2023. Gen Z
collaboration between Heineken 0.0 and remains a key target demographic via 16% 16%
F1 star Max Verstappen on the latest social media and the metaverse for 13%
‘When You Drive, Never Drink’ brand owners. 11%
campaign, promoting responsible 8% 9% 8% 8%
drinking to new and relevant audiences. Controlling the narrative? 5%
4%
3%
Brands and consumers alike are also Gauging influencers’ relative success is 2%
paying attention to local and micro- hard, as is controlling the messaging.
influencers, from industry/alcohol Maintaining beneficial collaborations
-1%
specialists to individuals that model and relationships can be equally tricky:
2023 saw P Diddy sue Diageo over -4%
similar lifestyle habits to a brand’s own
envisaged identity. This provides an DeLeón Tequila, a brand he helped
entry point for small independent popularise as co-owner. Cancel culture CB T CB T CB T CB T
brands to take advantage of influencer also remains prevalent. In Poland, local
stars have leveraged social media to Gin Rum Tequila Whisky
marketing. Plus, consumers have the
potential to be more influenced by campaign for the prohibition of alcohol.
micro-influencers, as they may be more 2022 2023
relatable than celebrities. 1Celebrity-owned or highly backed brands
Ecommerce and AI Global Ecommerce Performance (2019–23)
Evolving consumer behaviour will require a re- 50 50%
focus towards a core ecommerce user base; NPD 40 40%
Value ($bn)
30 30%
research is an early-use case for AI
20 20%
10 10%
The new normal dropped off across markets as on-trade
and B&M outlets have recovered. 0 0%
Like 2022, 2023 marked another year of Notably, among the remaining -10 -10%
post-pandemic correction, dictated by a ecommerce consumers, online shopping 2019 2020 2021 2022 2023
tough macro-economic environment. frequency has actually increased. This
Global ecommerce value growth suggests ecommerce has lost the Total Value (US$) YOY Growth (%)
contracted slightly (-2% in 2023), largely consumers who adopted it out of
driven by China, the channel’s largest necessity, but retained or even
market, which fared worse than expected. increased its use by loyal customers. Ecommerce Value Growth (2019–23): Top 10 Markets
Of the top 10 ecommerce markets, only Key use cases for AI 150%
Brazil and Mexico saw positive growth, 120%
Value Growth (%)

although still at lower levels than in Beverage alcohol brand owners are
90%
previous years. As a category, wine increasingly adopting AI as a research
continued to suffer, while spirits tool and as an aid for new product 60%
experienced a marginal increase in development, but the technology has 30%
overall value growth. the potential to deliver additional 0%
benefits across company operations,
-30%
‘Transient’ vs loyal consumers from revenue management to
production efficiency. For now, the
Consumer behaviour has diverged in technology is mostly being used in
response to the new normal. The NPD, marketing and driving
proportion of online shoppers has operational efficiency.
2020 2021 2022 2023
Convenience
Ease of purchase remains of high importance to consumers, with producers investing in increasing
accessibility to their brands
Ecommerce channel dynamics have stabilised, with future value growth forecast to be distributed more evenly
across all channels. However, a visible shift to D2C sales is occurring in certain regions and categories, offering
greater convenience than more traditional channels. “Brand owners should
This is particularly strong in Latin America, where major brewers continue to invest in their own ecommerce
platforms to leverage distribution chains and meet consumers’ thirst for the quick delivery of cold beer. There is
not be shy about
also a similar trend apparent in China, with Kweichow Moutai’s online sales platform iMoutai opening up the exploring new platforms
market to baijju producers. Once a tiny channel in China, D2C is now the second largest.
Recent developments have also seen on-demand and D2C channels blurred. Notable examples include Zé Delivery
in the search for growth,
(AB InBev) in Brazil, Glup (Heineken) in Mexico and TaDa (AB InBev) in Colombia. as they can rapidly
Social media platforms are adopting D2C business models, as well. Douyin, the Chinese counterpart to TikTok, has become major drivers in
set up an internal ecommerce team to support drinks brands by launching live/short video promotions of liquor
that can be bought directly through the site. a market where
From 2024, the value growth of ecommerce is expected to return, albeit at a slower rate than before, with its value consumers are receptive
share of the overall market stabilising at 4%–4.5%. China and the US are integral to its overall future performance,
and Latin America presents a significant opportunity, with fast development expected. to new concepts”
– Guy Wolfe, Head of Alcohol
Ecommerce Insights, IWSR
| DIGITAL AND TECH CASE STUDIES
A-list brands
Celebrities and influencers Swiftonomics help
drive demand for tailored cocktails
Taylor Swift’s Eras Tour is now the highest-grossing concert tour on record, and its
economic impact has been so significant that a new phrase has been coined for it:
‘Swiftonomics’. Many of the tour’s host cities have seen a boost to their local
economies as fans visit and seek food, drink, lodging and merchandise, and the
cocktail category has also felt its influence.
Capitalising on Swift’s huge popularity, concert venues are offering ‘tailored’ cocktails
inspired by her songs and albums. Signature serves include Lavender Haze
Lemonade and Bad Blood Sangria, inspired by her songs ‘Lavender Haze’ and ‘Bad
Blood’, respectively. The former drink is made with falernum liqueur, lemon juice,
rhubarb bitters, elderflower tonic water and Empress Gin, which has seen volume
growth of 6% YOY.
Social media platforms have been instrumental to the spread of these cocktails
outside concert venues, as Taylor Swift fans share their recipes online. The virality of
these drinks demonstrates the potential for celebrity-inspired cocktails to serve as a
marketing and sales vehicle for spirits brands.
Image: www.theeverygirl.com
| DIGITAL AND TECH CASE STUDIES
Digital optimisation
Ecommerce and AI In the rapidly evolving digital
space, brand owners are increasingly exploring the
use of artificial intelligence
The use of AI is still in its infancy, and for now it is mainly being used in two areas in
beverage alcohol: new product development, often linked to marketing activity, and
driving efficiency across company operations.
In 2023, to celebrate the 150th anniversary of its beer brand Beck’s, AB InBev
launched Beck’s Autonomous, a limited-edition beer. The initiative saw all aspects of
the beer’s production made using AI, including the recipe, logo, packaging design and
marketing campaign. The product was sold in the UK, Germany and Italy.
In Asia, Sapporo and IBM Japan have jointly developed an AI system named N-Wing
Star (New Wing Star). The brewery then used the technology to create its Otoko Ume
Sour Salty Plum RTD in mid-2023. This new system is expected to reduce the total
time needed for initial NPD by almost half. In South Korea, local convenience store
GS25 and local brewery BrewGuru joined forces to create the country’s first AI-
developed cocktail, the AskUp Lemon Sparkling Highball.
Many large brewers have adopted AI across their operations, too. For instance, AI
has transformed Heineken’s distribution function in Mexico, with 80% of orders now
placed online, supporting ecommerce growth.
Image: www.sapporobeer.jp
Social Drinking
Social Drinking
On-premise reset
The on-trade remains under pressure from the cost-of-living crisis,
with consumers adapting how they drink on-premise
At-home consumption
Inflation and the higher cost of living is benefitting off-premise
consumption; retailers are adapting to changing occasions
Badge value
Pockets of growth remain in status spirits, with consumers
showcasing their social standing despite the inflationary environment
| SOCIAL DRINKING OVERVIEW
Overview: Social Drinking

Evolving consumer preferences are leading to changes in both on- and off-premise channels; venues are
re-evaluating their offerings to accommodate more demanding consumers
Global On-Premise Recovery Overview
Global On-Premise Global on-premise still lagging behind 2019 levels

Volume Share
Spain 2019 34% Despite inflation and labour challenges, the on-trade
2020 22% sector continued its recovery. On-premise TBA volumes
On-trade buoyed by tourism and the grew by 8% in 2023, and the consumer desire to
cultural affinity for socialising outside 2021 27%
socialise clearly remains. However, on-trade volumes
the home; venues evolving from one- 2022 27%
are still 14% lower than in 2019. Asia-Pacific growth
dimensional nocturnal establishments 2023 30%
was driven by China's full re-opening, but this recovery
to multifaceted all-day venues was not as strong as anticipated.
Globally, the social drinking scene is undergoing

significant change, and there is a noticeable trend away
from late-night venues. The down-trading trend was
prevalent in the on-trade: visits increased but overall
China
spend decreased as consumers shifted to the more
Despite the full return of the on-trade, affordable aperitivo moment. Furthermore, the
performance was disappointing and evolving preferences of younger generations are
more fragmented, with many clubs reshaping drinking trends, and venues are adapting to
closing. Some categories performed these new global trends in a bid to boost sales.
well, however, including vodka, gin, rum
and tequila.
| SOCIAL DRINKING IN DEPTH
On-premise reset On-Trade Volume by Region (2019–23)

Volume (Millions hL)
900
On-trade share has still not reached its 2019 levels
as ongoing challenges persist 800
On-trade still tackling headwinds entertainment. ‘Street drinking’ was 700

buoyant in Greece as consumers went CIS -20%
The pressure persisted for on-trade out at a reduced cost by bringing their Africa and
owners, resulting in bankruptcy and own bottle. BYO was also seen in Turkey 600 Middle East
closure for many venues, particularly as consumers grappled with high
nightclubs. Higher operating costs for inflation. These trends indicate a
+4%
venues, soaring prices for customers move towards more versatile drinking 500
and staff shortages in the wake of the experiences, influenced by economics, Europe -17%
pandemic slowed down on-premise moderation and social media.
recovery, with many restaurants 400
operating fewer days a week. Moderation: economic and health South America
300 -5%
Shift to day/early-evening drinking Although consumers continue to visit
the on-trade, they are purchasing less North America
The shift from high-tempo, late-night due to higher prices. Going out is now -8%
200
drinking to relaxed, early-evening social more premeditated as a result of lower
gatherings continues. Spirit aperitifs like disposable incomes. In China and
Aperol are gaining ground, with Turkey, venues are selling more 100 Asia-Pacific
operators offering spritz serves for Champagne by the glass than by the -21%
early-evening consumption. Nightclubs bottle. On-premise venues are also
are being replaced by venues providing increasingly adapting to the moderation 0
varied social experiences, such as trend, offering more bottled and 2019 2020 2021 2022 2023
competitive socialising sports, bar-cafés, draught options for no-alcohol beer and
and bottomless brunches with live other no/low beverages.
Asia-Pacific North America South America* Europe Africa & Middle East CIS
*South America is defined by IWSR as the Caribbean, Central America and South America
At-home consumption Consumer Attitudes to Going Out

Net Scores (T15 Average)*
Social occasions are skewed towards off-premise

channels and are seeing increased experimentation
Going Out
Cheaper consumption at home friends and loved ones, has gained

traction in the UK as consumers look
As economic pressure weighs heavily, -21
for other modes of entertainment.
consumers who grew accustomed to Less More
home consumption during the Consumers enjoy experimenting with -24
pandemic have continued to do so due new recipes they’ve discovered on social
to the high cost of going out. The platforms and prefer drinks that are
traditions of drinking at home before a easy to prepare and visually appealing.
night out and having post-dinner drinks
at home are still prevalent in France, Retailer strategies
Venue Preference
Australia and Mexico, among others.
In South Africa, retail sales have
Occasions at home evolve increased due to heightened
promotional activities, and home Happier Happier
-25
As consumers attempt to cut costs, consumption has become more eating and eating and
they have continued hosting social prevalent, leading to increased off- drinking at drinking in a
-26
gatherings and parties at home, trade purchasing and up-trading. home restaurant
experimenting with cocktails by
recreating the easy mixes they enjoy in Consumers are also opting for larger
the on-trade. In India, this trend pack size options that offer lower cost
is strong among older consumers. per litre in retail. In Germany, economic
strain has driven consumers to
’Competitive socialising’, which frequent off-trade channels,
combines experiences and particularly discount chains, to find
entertainment with spending time with bargains and promotions.
Source: Bevtrac 2024 Consumer Insights: Wave 1. Net scores calculated by subtracting the % who agree with the
statement on the left from the % who agree with the statement on the right. *2023: April; 2024: March
Badge value Sotheby’s Spirits Sales Value (2019−23)

Volume (Millions US$)
Portraying a certain social status is still perceived as “We continue to be broadly

important by some consumers; status spirits grew optimistic about the future of
status spirits, but expectations
in 2023, albeit at a slower rate were scaled back during 2023,
reflecting a less stable economic
$33m
0.035
outlook globally”
Premium spirits in demand Badge value in APAC $31m
–Guy Wolfe, Head of Status Spirits
Badge value associated with social status The social status associated with Insights, IWSR
0.03
continues to be evident in some markets, certain brands remains a significant

despite the economic situation. It is factor in the Indian alcohol market, as
particularly noticeable in the volumes of well. The success of Indian single 0.025
premium-plus tequila category in many malts, which are now seen as a symbol $22m
regions. In Mexico, Scotch used to be the of quality and sophistication, is a
gift of choice, but consumers are testament to this trend. At the same 0.02
increasingly pivoting to high-end tequila. time, in China, the badge value of

certain drinks, such as Champagne
African badge value $15m $15m
and high-end spirits, has diminished as 0.015
some of the main consumption

In a market like Nigeria, where social
occasions have disappeared, and
drinking is highly associated with badge
consumers have become more
value, premium and ultra-premium
cautious with discretionary spending.
0.01
spirits such as single malt Scotch and

tequila have continued to grow despite
economic challenges, as they are seen 0.005
as status symbols.
Badge drinking plays a crucial role for

emerging middle-class and wealthy
0
consumers in South Africa, who perceive 2019 2020 2021 2022 2023
Cognac as a lifestyle symbol.
Source: Sotheby’s Wine & Spirits Market Report 2023
| SOCIAL DRINKING CASE STUDIES
No/low options in the

on-trade
On premise reset More brands and venues are
catering to the increased demand for no- and low-
alcohol alternatives in the on-trade
As moderation becomes more mainstream, bars and restaurants are adapting, with
a wider variety of non-alcoholic choices becoming more common.
A growing number of brand owners are innovating to support this shift and be
inclusive of the evolving consumer needs in the on-trade. Diageo, owner of the
Guinness brand, announced it would make the draught version of its non-alcoholic
Guinness 0.0 beer available in 2,000 outlets in Ireland by the end of 2024. Through
an earlier pilot, the product is now available in over half the pubs in Ireland via
draught format.
Lucky Saint, a well-known independent non-alcoholic beer in the UK, has enjoyed
strong growth in recent years; volumes for 2023 were up by 88%. In late 2023, the
company opened a pub in central London called The Lucky Saint, billed as ‘a pub of
our times’. The pub sells an array of alcoholic drinks but offers a wider choice of
no/low products, too.
In another significant move, the world-renowned Oktoberfest beer festival recently

announced its first alcohol-free beer garden, located in Munich. It will offer an array
of non-alcoholic beers and soft drinks to cater to changing consumer preferences,
and it is anticipated to alleviate some public binge-drinking concerns.
Image: www.luckysaint.com
| SOCIAL DRINKING CASE STUDIES
Dining in gets a premium

makeover
At-home consumption Deliveroo uses exclusive
perks such as priority delivery and gourmet
experiences to appeal to home-dining enthusiasts
Capitalising on the enduring popularity of home dining and intimate social events,
Deliveroo has introduced Plus Diamond in the UK, a new invite-only, top-tier
subscription plan aimed at its most loyal users.
This initiative promises priority delivery, best value and exclusive culinary events,
designed for regular app users who seek convenience and are willing to invest in
premium at-home service. Plus Diamond is particularly targeted at Millennials and
Gen Zs, for whom ease and efficiency are essential.
Subscribers will also be able to order from upscale merchants such as The Black
Farmer Farmshop and Hedonism Wines. Moreover, Plus Diamond subscribers are
granted access to special food events in an effort to win over culinary aficionados.
Image: www.retailtimes.co.uk
Health and Ethics
Health and Ethics
Health and moderation
Consumer moderation becomes more mainstream
Supporting local
Pockets of growth for locally produced drinks
Ethical consumption
Consumers still seek ethical drinks despite cost-of-living pressures
| HEALTH AND ETHICS OVERVIEW
Overview: Health and Ethics

Moderation has gained momentum and is growing faster than full-strength alcohol in Europe and the
Americas; the trend is less established in other regions
TBA Performance by Segment (2023)
Full-strength vs No/Low Volume Growth (%)
Momentum in moderation
North America Europe
Globally, the no/low-alcohol segment is experiencing
Full-strength -3.0% Full-strength-3.2% healthy growth, primarily driven by Europe and the
No/Low +8.0% No/Low +1.9% Americas, in contrast to the negative growth seen in
alcoholic beverages. No alcohol’s global volumes grew
by 6% in 2023, while low alcohol declined by 1%. The
no segment however still remains niche.
Asia-Pacific The moderation trend has been mainly adopted by
younger LDA+ consumers and is gaining
Full-strength -0.4% traction. Health awareness and active lifestyles have
No/Low -2.0% become a priority for consumers, leading
people towards lower-alcohol options such as beer,
wine and spritz cocktails. Additionally, the focus on
health and wellness has spurred demand products
South America* Africa and Middle East with low sugar, low calories and organic ingredients.
Full-strength -1.3% Full-strength -0.8% Beer is the most developed category in terms of no
No/Low +8.2% No/Low -0.7% alcohol, and brewers have invested heavily in NPD in
recent years.
*South America is defined by IWSR as South America, Central America and the Caribbean
| HEALTH AND ETHICS IN DEPTH
Health and moderation Moderation Trend % Mentions (T15)*

Correlation with change in lifestyle and occasion
Health and lifestyle adjustments as well as Wellbeing and changes in Economic

economic factors are shaping new consumption social circles/habits moderation Health
patterns
50% 30% 20%
Multiples drivers to moderation categories increasing their investment. “Have reduced alcohol consumption “We consider alcoholic “I have a
In 2023, AB InBev announced an overall and switched to less expensive beverages as a luxury healthier
Health and wellness, along with investment of €31m to upgrade its drinks” or treat. lifestyle and
economic concerns, continue to heavily Belgian breweries and optimise a new We have cut down simply want to
influence alcohol consumption trends, de-alcoholising system. Diageo also “I drink more alcohol-free beer as it’s significantly drink less
especially among younger LDA+ announced an investment of €25 million more socially accepted now“ on our non-essential alcohol”
consumers. Increasingly, however, spending”
to increase production of its flagship
general well-being and evolving lifestyles non-alcoholic stout, Guinness 0.0.
and habits are playing a key part in the
moderation trend. There is a diminished No alcohol growth across all regions
social stigma around drinking no-alcohol Change in Lifestyle
variants in the new post-Covid era; Globally, no-alcohol TBA grew by 8%
some consumers are imbibing less per (volume CAGR 2019–23) with no-alcohol
occasion, reducing the social drinking spirits growing by 28% in the same
events they attend or choosing to drink period, albeit from a smaller Fewer social/drinking
only in special instances. base. Growth in no-alcohol beer has occasions Drinking less on occasion:
been widespread across developed At-home vs on-premise lower frequency, lower
Brand owner NPD markets and in developing markets such consumption intensity, lower volume
as Brazil.
Producers are continuously innovating
the flavour profile of no-alcohol “I only drink alcohol when I go “The frequency has decreased,
beverages. Beer has been at the out with friends; rarely at home” and so has the quantity”
forefront of this innovation, with other
Source: Bevtrac 2024 Consumer Insights: Wave 1. Base: Drinkers population. *% means approximate share of mentions
in T15, minus China and India
Supporting local Argentina: Local Bitters/Fernet Performance (2010−23)

Consumers still seek beverages that are crafted 7,000

locally, fostering a sense of connection with the 6,000
product; cost remains a key driver 5,000

4,000
3,000
Local appreciation have enjoyed a resurgence, driven by 2,000
provenance, environmental concerns 1,000
Amid a tough economic climate, there and support of the local economy. The 0
have been pockets of demand for local, rise of Indian single malts in 2023 was a
premium and ethically sourced products. 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
key development in India, challenging the
In the UK, English sparkling wines saw dominance of single malt Scotch due to
double-digit volume gains, reflecting a their quality and affordability. National
growing interest in local and premium spirits in China had a poor performance
alternatives. Local producers are owing to high inventories and delayed Malt Scotch vs Indian Malt Whisky Volume Trajectory
increasingly offering a wider range of New Year celebrations, with many small CAGR 2019−23 | YOY Change 2022−23 (%)
prices, aiming to make products more players closing down in 2023.
accessible and appealing to a broader 76.2%
consumer base. Rakia in Bulgaria also saw ‘Adopted’ local
demand for more premium, local
offerings due to a growing appreciation In Argentina, the locally produced fernet
for high-quality local grapes. However, segment has gained prominence in 38.3%
cost remains a key factor as affordability recent years and is now firmly a symbol
often trumps provenance. of Argentine culture, representing 81% 25.2%
of global volumes. The category has 17.2%
National pride become extremely fashionable,
particularly with younger LDA+
In some regions, national pride is helping consumers. Tourism and social media
to augment the demand for local has also supported growth. CAGR 2019−23 YOY 2022−23
products. In France, French whiskies
Malt Scotch Indian Malt Whisky
Ethical consumption Quality Association with Alternative Wines by Age

RWDs* associating the below wines with high quality (%)
Organic Wine
Despite rising costs, demand for ethical products
remains strong
39% 38%
32% 31% 30% 30%
Younger cohort preferences Sustainability still important 28% 28%
23% 21% 25%
22% 22%
16% 18%
Alternative wines, including organic, Sustainability and ethical consumption 14% 14% 12%
natural and sustainable products, offer continue to be crucial purchase drivers 9%
growth opportunities in many markets. for consumers. Evaluating the
Gen Zs and Millennials are increasingly environmental footprint of producers is
influential in the market and willing to increasingly a factor when making a Australia Canada China UK US
pay a higher price for these alternatives, purchase. Fungal-resistant grape
as they believe organic wines are better varieties (PIWIs) are becoming more Gen Z (LDA−26) Millennials (27−42) Gen X (43−58) Boomers (59+)
for them and the quality is higher. important to wine producers in some
countries as they offer more resistance
Organic wine to climate change and require fewer Natural Wine
pesticides, with some consumers
Although global organic wine volumes
seeking this credential. 41% 43%
declined by 1% in 2023, the decline was
less pronounced than that of total non- Packaging front of mind 31% 32% 30%
organic wine (-4%). There has been 25% 26% 24% 24% 25% 24%
22% 22%
volume growth in organic wine in key Environmentally friendly packaging 19%
wine markets such as Italy (+10%), continues to gain traction in some 14% 15% 14%
13% 11%
Australia (+5%) and Spain (+5%). markets, including Germany and Nordic
countries, driven by both consumer
demand and government pressure on
brand owners to reduce their carbon Australia Canada China UK US
footprints.
Source: Opportunities in Sustainable, Organic and Alternative Wine 2024. *RWDs = regular wine drinkers. %/%
= Statistically significantly higher/lower than all Australian, Canadian, UK and US RWDs, plus Chinese urban
upper middle-class semi-annual drinkers of imported wine, at a 95% confidence level
| HEALTH AND ETHICS CASE STUDIES
Community spirit
Supporting local Exemplifying key trends in the gin
market − tradition and local sourcing − Sông Cái gin
uses native botanicals to create an authentic
Vietnamese brand
Sông Cái was established by Daniel Nguyen, an Vietnamese-American who dedicated
years to exploring Vietnam’s rural biodiversity and ethnobotany. He collaborated
with local gatherers and farmers to procure exclusively indigenous botanicals. The
name Sông Cái, which translates to ‘mother river’, is deeply rooted in the culture of
Vietnam, where rivers are symbolically seen as the essence and source of life.
The Sông Cái distillery is now well known for creating spirits that embody Vietnam’s
diverse ecosystems. Currently, the distillery partners with more than 70 rural families
to safeguard native plants and customs. More than 60% of the distillery team are
indigenous women.
Sông Cái maintains steadfast commitments to its rural collaborators: fair

compensation for botanical ingredients, investment in reforestation initiatives,
conservation of local plant life and continuous educational support. Its overarching
mission is to foster equitable economic development, bolster rural communities and
conserve the cultural legacy of Vietnam.
The enterprise serves to highlight the unique Vietnamese terroir and to foster
sustainable livelihoods for Vietnam’s rural populations. A recent brand initiative
compensates local cultivators for growing native plant seedlings and reintroducing
them into the wild, ensuring the sustainability of the botanicals used in its gin.
Image: www.bbcspirits.com
External Pressures
External Pressures
Inflation
Inflation eases but still remains stubbornly high
Geopolitical pressures
Escalating tensions affect global trade and result in more uncertainty
Legislative changes
Regulatory bodies clamp down on beverage alcohol
Sustainability
Climate change continues to impact beverage alcohol and the need
for sustainability
| EXTERNAL PRESSURES OVERVIEW
Overview: External Pressures

A turbulent macro landscape is proving challenging for brand owners due to a variety of factors
World Uncertainty Index

Global GDP (Weighted Average)
60000
Array of external pressures creates obstacles for TBA
50000 The beverage alcohol industry has been hit hard by a

range of external pressures. A poor economic
environment along with geopolitical and societal issues
40000 have resulted in trying conditions for brand owners.
Despite this volatility, there are signs of ‘cautious’

optimism as the economic outlook is set to gradually
30000
improve, with TBA volume forecast to grow by a modest
0.4% in 2024.
20000 In the long term, environmental and technological risks
are expected to gain prominence over societal and
economic risks, as cited by the World Economic Forum.
10000
Sustainable practices are anticipated to remain high on
the agenda for brand owners, not only as marketing
0 tools, but as necessities for mitigating operational risks.
2017 2018 2019 2020 2021 2022 2023 2024
Source: Organization for Economic Co-operation and Development, Consumer Opinion Surveys, Confidence Indicators, Composite Indicators: OECD Indicator for the United States (CSCIO03USM665S); retrieved from FRED, Federal Reserve Bank of St
Louis, fred.stlouisfed.org, October 26, 2017
| EXTERNAL PRESSURES IN DEPTH
Inflation
Economic concerns prevail and are embedded in consumer decision-making despite easing inflation
Inflation Rate, Average Consumer Prices1 Q How has your spend changed in the following categories in the past six months?2
Annual Change (%) Net Scores
10
9
8
7
12 10
6
5
4 -5 -8
3
2
1
0
Alcoholic beverages Snacks and Fresh Personal care
confectionery meat/fish/poultry products
• While the global inflation rate has fallen by 2.2 percentage points from its peak in • Cautious spending dominated 2023. Consumers across all regions, with the
2022, it remains elevated across both mature and developing markets and is still exception of Asia, prioritised essential items over discretionary products like
higher than pre-pandemic levels. Coupled with an environment of geopolitical alcohol. This resulted in down-trading in some categories, with consumers skewing
uncertainty, consumer spending continues to be significantly impacted, and brand towards the off-premise and opting for more affordable options. Notably,
owners still feel the pressure in terms of production and supply costs, particularly premium-plus beer and spirits have done well despite inflationary pressure and
affecting smaller companies. are more insulated.
¹Source: IMF Inflation: annual % change April 2024. 2Base: Drinkers. Net scores calculated by subtracting the % saying they spent more in a named FMCG category from the % saying they spent less. Source: Bevtrac 2024 Consumer Insights: Wave 1
Geopolitical pressures
Ongoing geopolitical issues are escalating in an environment of uncertainty
Conflict uncertainty with potential regulatory changes and

altered economic policies.
Conflicts in Russia-Ukraine and the Middle East show
no signs of abating. Supply chain issues loom alongside Tariffs and trade restrictions continue to affect
decreased consumer confidence and spending, international trade and market dynamics for imported
creating a ripple effect. alcohol. US elections in particular raise concerns over
However, geopolitical tensions have resulted in positive

new tariffs on European wines and brandies. Also, the
threat of higher Chinese tariffs on EU brandy remains a “Volatility in
volume growth in some regions like Russia. There, worry for some, and could be particularly damaging for
despite a host of international sanctions from the
West, parallel imports have combined with heightened
the Cognac category. geopolitical and
local production and brand activities for a top-line
positive performance in 2023, as people sought alcohol
Crucial shipping and supply chains have been further
destabilised by disruptions in the Red Sea; maintaining
geoeconomic
as a stress reliever to help alleviate the psychological
pressure. This holds true even for the dominant vodka
high levels of security and diversifying supply chains
remain important. relations between
category, which has been growing since the start of the
war after many years of gradual decline. major economies”
Political shifts/tensions - Stated as greatest risk in the
In 2023 and 2024, record numbers of national World Economic Forum’s Chief
executive and/or legislative elections are taking place.
In 2024 alone, just under half of world’s population is
Risk Officers Outlook 2023
heading to the polls, including India, the US and the
European Union. This adds to the environment of
Impact of Alcohol Legislative Changes by Category and Region
Wine Spirits Beer RTDs

Legislative changes
Africa and Middle East South Africa
Americas Brazil Government and world agency guidance on alcohol
Canada consumption reinforces the moderation message,
Colombia even if it’s not officially adopted
Mexico
United States Increased legislation
Asia-Pacific Australia In 2023, legislative changes impacting the alcohol beverage market were pronounced
China as numerous governments clamped down on alcohol.
India Excise changes in the UK, Netherlands, Poland and South Africa have driven prices
Japan up significantly across most categories. Spirits in Australia and the Czech Republic
have been hit particularly hard. Vietnam’s alcohol market has also been affected by
Vietnam stringent drink-driving laws, and there is a proposed hike of 100% in the alcohol
Europe Czech Republic consumption tax by 2030. Ireland’s adoption of enhanced alcohol labelling laws has
prompted similar discussions throughout Europe, raising concern among producers.
France
UK alcohol duty changes have resulted in the ABV reformulation of some brands.
Germany
Opportunities for brand owners
Ireland
Italy Amid these challenges, regulatory changes offer potential benefits such as enhancing
market access and facilitating industry growth. For instance, the Indian state Gujarat
Netherlands
is set to start selling alcohol in the on-premise channel, with potential for broader
Poland prohibition reforms following the 2024 elections. China’s decision to lift tariffs on
Australian wine imports has restored market access, and in the US, some states have
Spain
modernised alcohol laws to allow for spirits-based products within the direct-to-
United Kingdom consumer channel. In Canada, the federal government’s capping of duty increases
for two years is likely to have a notable impact on travel retail, particularly in Ontario.
Positive Negative No regulatory changes
Analysis date: May 2024
Sustainability
Climate change remains a key external pressure;
alcohol brand owners and governments are
ramping up decarbonisation initiatives to enhance
sustainability and drive efficiencies
Sustainable practices are increasingly a necessity as the realities of climate change
become more apparent. This trend is driven by the need to mitigate environmental
impact, ensure long-term viability, adhere to regulatory/industry guidelines and meet
the evolving expectations of eco-conscious consumers.
Sustainability legislation
Ambitious targets have been set across the industry by regulatory bodies and
companies themselves. Industry guidelines such as the UN Sustainable Development
Goals, Beverage Industry Environmental Roundtable as well as the EU Corporate
Sustainability Reporting Directive seek increased transparency and accountability in
sustainability practices. Deposit return schemes in Europe are also gaining
momentum, with markets like Ireland, Greece, England, Hungary, Turkey, Austria,
Scotland, Poland and Romania placing a greater focus on the circular economy.
Sustainability as a differentiator in a competitive market
Sustainability initiatives have also helped to enhance brand reputations. Positive

sustainable practices appeal to consumers and can help to reduce operational costs
in the long term, though they may require some initial capital investment. Remaining
open-minded to alternative practices and harnessing technological advancements is
key for companies to mitigate climate risks, too. For example, French Champagne
houses have increasingly acquired UK vineyards to combat low harvests in France.
| EXTERNAL PRESSURES CASE STUDIES
Global uncertainty
Geopolitical pressures Escalating tensions between
the East and the West continue, with EU brandy the
latest category to come under the spotlight
In January 2024, China launched an anti-dumping investigation into European Union

brandy in containers of less than 200 litres. This came after a complaint submitted by
the China Alcoholic Beverages Association on behalf of the domestic brandy industry.
In 2023, China’s brandy consumption stood at almost 3.3 million nine-litre cases and
was valued at US$4.9 billion, of which nearly 98% of the volume and value came from
the European Union.
The investigation follows the news that in March 2024, China ended the import tariffs
on Australian wine, which Beijing imposed in 2020 to target anti-competitive
practices. Since the announcement of those tariffs, both the volume and value of
Australian wine sold in China suffered, declining by 99% between 2019 and 2023.
However, just two months after removing the tariffs, Australia solidified its position
as China’s second-largest wine exporter by value (behind France) in May 2024,
according to Chinese customs data.
In a separate development, the Russian government built on its protectionist policies

of recent years by increasing import duties on wines from ‘unfriendly countries’ from
12.5% to 20% in 2023, then extending this measure for the whole of 2024.
| EXTERNAL PRESSURES CASE STUDIES
Breaking the glass

Sustainability Securing single-use glass bottles for
alcoholic beverages is no longer an easy task due to
inflation, geopolitical tensions and the community
pressure on sustainability
Innovation in alcoholic beverage containers plays a vital role in mitigating the long-
term environmental impact of the industry. Established in 2018, the Singapore-based
company EcoSpirits aims to eliminating single-use glass in the wine and spirits
sectors, instead storing the liquid in its proprietary EcoTote packaging and
implementing a closed-loop distribution system. It currently operates in more than
27 countries, including the US, China, Australia, UK, Germany, France and Italy.
Major players in the industry are now joining forces with EcoSpirits in an effort to
reduce their carbon emissions. Late last year, Diageo entered a global agreement to
distribute Smirnoff Vodka, Captain Morgan Rum and Gordon’s Gin in the EcoTote
format in select markets over the next three years. In May 2024, Rémy decided to use
the new format to expand its distribution of Cointreau and Mount Gay Rum outside
the UK, to the US and other global markets, over the next four years. And Pernod
Ricard also followed suit with a five-year global agreement to distribute Absolut
Vodka, Beefeater Gin and Havana Club Rum in the format after a pilot trial in
Singapore in 2022.
Brand owners are innovating with other materials, as well. After launching a paper-
based spirits bottle for Johnnie Walker, Diageo announced a paper-based bottle trial
for Baileys Irish Cream in May 2024, and last year, Pernod Ricard completed a three-
month pilot selling Absolut Vodka in a single-mould paper bottle.
Image: www.ecospirits.global
Focus Markets
| FOCUS MARKETS
Brazil Moderation trend evident
Strong growth momentum in no/low-alcohol beer

Despite these headwinds, premium beers
prevailed and were the only price band to show
positive volume growth, boosted by promotional
continued in 2023, indicating shifting attitudes activity and on-trade investments.
among consumers. Despite being small in overall
Category Volume Performance share, this sub-segment is expected to grow; in External pressures impact whisky
August 2023, multinational brewer Heineken
15% 15% announced a US$16m investment to expand High inventory levels from 2022, particularly in
production of its flagship no-alcohol beer, Scotch whisky, impacted growth throughout the
Heineken 0.0, in São Paulo. year. Coupled with price wars between imported
and domestic whiskies, category performance
10% 10% was poor. Scotch, which usually carries badge-
Total Beer Volume vs No/Low Share value status for middle-class families, declined as
150m 2.0% consumers facing financial strain and political
insecurity. US whiskey, however – particularly
5% 5%
1.6% flavoured variants, which are attracting and
recruiting young LDA+ consumers – posted a
100m
YOY Growth
1.2% positive performance.
CAGR
0% 0%
0.8%
50m
0.4%
Whisky Performance (2023)
-5% -5%
8 40%
0m 0.0%
6 30%
2022 2023 4 20%
-10% -10% 2 10%
Total Beer (hL) No/Low Share (%)
0 0%
-2 -10%
Premiumisation prevails in beer
-15% -15% -4 -20%
Beer Cider RTDs Spirits Wine Brazil is one of the leading beer markets, ranking -6 -30%
third globally. As the country grappled with an Scotch US
erratic economy in 2023, beer volume growth was
YOY Growth 2022–23 (%) CAGR 2023–28F (%) flat overall after the previous year’s all-time high. Volume (9LCm) YOY Growth (%)
| FOCUS MARKETS
China On-premise reset boosts beer
Beer saw its third consecutive year of increased

remained stable, indicating strong underlying
demand for Cognac. Notably, VS Cognac has seen
substantial growth from a relatively small base.
sales, suggesting a recovery from its pandemic-
years slump. Consumers increasingly choose
Category Volume Performance quality over quantity, driving a rapid move Premium+ Spirits Performance (2010–23)
towards more premium products. Craft beer is
15% 15% Volume (9LCm)
also enjoying growing interest from younger and
affluent patrons. RTDs are gaining traction, 4
particularly among females, serving as an
alternative to beer. There is a growing niche for 2
10% 10%
high-ABV RTDs targeted at male consumers.
0
Beer Price Band Volume Share (2019–23)
5% 5%
5.5% 5.7% 6.9% 7.6% 7.9%
YOY Growth
Malt Scotch Blended Scotch Cognac
CAGR
0% 0%
Evolving lifestyles impact single malt sales
-5% -5% For the first time since 2010, single malt Scotch saw
a drop in sales volume, as a result of low consumer
2019 2020 2021 2022 2023
interest and high inventory in the trade. Post-Covid,
Standard and Below Premium+ younger consumers are also going more to live
-10% -10% music venues, where beer is more commonly
Down-trading in Cognac chosen, rather than nightclubs, where patrons
would typically purchase spirits by the bottle.
The permanent closure of major nightclubs due
-15% -15% With more focus than ever on personal budgets,
to Covid, coupled with the real-estate crisis, has
Beer Cider RTDs Spirits Wine reduced Cognac consumption. Diminished consumer spend in the super-premium category
consumer confidence has further exacerbated did not see any increase at all. However, certain
the decline in XO Cognac volumes. It is brands in the 10–12yo age bracket enjoyed a
YOY Growth 2022–23 (%) CAGR 2023–28F (%)
noteworthy that categories below XO have notable increase in sales.
| FOCUS MARKETS
France Down-trading and external pressures
High inflation significantly affected consumer

preference for locally produced drinks, French
consumers were willing to spend extra to support
the local economy – volumes of local whisky saw
purchasing power in 2023. Down-trading to growth of 12% during the year.
lower-value products occured across categories,
Category Volume Performance slowing the premiumisation trend that had
been strong for several years. Increased prices
10% 10% also further impacted category declines in still Spirit Aperitifs Performance (2013–23)
wine, whisky and aniseed. Economic fragility Volume Growth (9LCm)
slowed on-trade recovery; when consumers did
go out, they were more selective with spending. 1.7 1.9
1.6
5% 5% 1.3
Domestic vs Imported Whisky (2019–23)
Volume Growth (%)
YOY Growth
2023 12%
-6%
CAGR
0% 0%
2022 4%
-5%
2021 13%
4%
Spirit aperitifs sustaining growth
-5% -5% 2020 16%
-3% Despite economic challenges in the market, spirit
aperitifs continued to grow in both the on- and
Local Imported off-trade channels. Volume increases were
Local pride in French whisky supported by consumers‘ continued appetite for
spritz cocktails. The moderation trend, especially
-10% -10% In 2023, imported whiskies saw significant popular among younger LDA+ drinkers, also
Beer Cider RTDs Spirits Wine decline, affected by shrinking disposable incomes. contributed to the success of the sub-category
Premium-and-above whiskies, such as Scotch, with brands like Aperol.
were notably impacted. However, French whisky
YOY Growth 2022–23 (%) CAGR 2023–28 (%)
showed exceptional resilience in a difficult
economic environment. Driven by a growing
| FOCUS MARKETS
Germany Blended Scotch drives category
Johnnie Walker was a catalyst for category growth

from this shift in occasions. RTDs are another
category that has profited from more casual
drinking: canned cocktails outperformed the TBA
in 2023, led by strong brand awareness and market in 2023, also supported by the
promotional activity. As consumers looked to convenience trend.
Category Volume Performance save money, many opted for blended Scotch as a
good value proposition and made the switch from Sparkling wine down-trading
5% 5% malts. Premium-and-above also benefitted from
the sub-category’s image and affordability. Cava grew significantly in 2023, with brand
4% 4% awareness, increased distribution and promotions
contributing to growth. Asti sales increased too,
Scotch Whisky Performance (2019–23) with a weakened performance from Prosecco and
3% 3% Volume (000s 9-litre cases) promotions captivating consumers. Champagne
4,000 struggled as German consumers favoured more
2% 2% affordable alternatives.
1% 1% 3,000
Sparkling Wine Performance (2023)
YOY Growth
CAGR
Volume Change (%)
0% 0% 2,000
-1% -1%
1,000 Asti
-2% -2%
0
Cava
-3% -3% 2019 2020 2021 2022 2023
-4% -4% Champagne

Moderation supports spritzes and RTDs
-5% -5% The trend around drinking less has been

Beer Cider RTDs Spirits Wine developing rapidly in Germany. Moderate Prosecco
drinking was supported by lower-tempo
occasions and daytime drinking; spirit and light
YOY Growth 2022–23 (%) CAGR 2023–28 (%) aperitifs such as Aperol and Lillet have benefitted -10% -5% 0% 5% 10% 15%
| FOCUS MARKETS
Japan Highest cost of living in 41 years
Japan is facing its most severe inflation in four

leading the trend, while gin and wine are also
becoming popular bases for highball concoctions.
There is growing demand for healthier drinks that
decades, with a significant surge in prices affecting feature lower alcohol and sugar levels, as well as
alcohol consumption. This is adversely impacting fewer calories.
Category Volume Performance consumers, who have become accustomed to
stable pricing. Moreover, this inflationary period
5% 5% coincides with a lack of salary adjustments, leaving Agave-based Spirits Performance (2019–28F)
consumers to grapple with diminished spending Volume (000s 9-litre cases)
4% 4% power. It is anticipated that the overhaul of the
Japanese beer system and increase in tax on beer- 600
3% 3% flavoured drinks will incentivise consumers to move
500
towards traditional beers.
2% 2% 400
RTDs Performance (2019–28F)
Volume (000s 9-litre cases) 300
1% 1%
YOY Growth
200
2018
CAGR
0% 0% 100
2020
-1% -1% 0
2022
-2% -2% 2024F
2026F
-3% -3%
On-premise and tourism boost tequila
2028F
-4% -4% Tequila, although quite niche, was one of the
125 150 175 200 225
stand-out categories of 2023, with growth of
-5% -5% almost 30%. Growth in the category was
Opting for moderation and better value
Beer Cider RTDs Spirits Wine supported by tourism, the on-trade channel and
RTD consumption is booming, driven by a wave of new market entrants, making Japan the seventh-
NPD, affordable pricing and the rising popularity largest market globally in 2023.
YOY Growth 2022–23 (%) CAGR 2023–28 (%)
of highball cocktails. Whisky-based highballs are
| FOCUS MARKETS
India Premium and local Indian whisky
Premium product launches have given

momentum. Domestic agave-based brand Pistola
has attracted investment from Diageo, just as
craft gin pioneer Nao Spirits did. Experimental
Indian whisky a higher-end boost, with Indian younger consumers and a growing LDA+
single malts (ISMs) registering a watershed year in demographic underpin these trends, as does an
Category Volume Performance 2023. ISMs may well outsell Scotch single malts in interest in cocktails both on-premise (Millennials
India as soon as 2024, with their popularity likely and Gen X) and at home (Boomers).
30% 240% to weather any loss of price advantage, should a
FTA eventually be concluded with the UK.
However, it should be noted that ISMs are (and White Spirits Volume Growth (2023)
200%
will remain) a tiny niche within the Indian whisky
market – the world's largest by some distance.
20% 160%
Premium+ Indian Malt Whisky (2019–23) Agave-based Spirits
120%
400 Vodka
YOY Growth
350
CAGR
10% 80%
300 Gin/Genever
250
40%
200 0% 50% 100%
150
0% 0% 100 Beer benefits from heatwaves
50
After suffering a coronavirus double whammy,
-40% 0
primarily thanks to lockdowns coinciding with the
2019 2020 2021 2022 2023 peak consumption months, beer sales in 2023
finally outstripped 2019’s. Two years of
-10% -80%
Cocktails and home channel boost clear spirits heatwaves have undoubtedly helped, adding
Cider Beer RTDs Spirits Wine Northern consumers to the Southern heartland,
Clear spirits are also increasingly popular, notably and 2024 is shaping up to be another year in
tequila, with vodka once again drawing in new which slaking summer thirst with beer delivers a
YOY Growth 2022–23 (%) CAGR 2023–28 (%)
consumers and Indian craft gins maintaining sales high.
| FOCUS MARKETS
Mexico
Down-trading in tough economic environment Inflation impacts beer
2023 proved a difficult year for Mexican Aside from the pandemic year, beer saw its first
consumers, with high inflation, hefty price volume decline in more than 10 years. It was not
increases and tourism negatively impacted by all doom and gloom, however, as the premium
Category Volume Performance gang violence. Consumers economised by beer segment outperformed mainstream types.
reducing their spend on non-essentials, including High inflation, a struggling on-premise, and the
10% 10% alcohol, and down-trading to more affordable growing appeal of RTDs turned the year into a
options – particularly within spirits (vodka, rum, perfect storm for the category.
liqueurs) and wine.
Pockets of premiumisation Beer Volume Performance (2010–23)

Volume (hLm)
Cristalino tequila volumes increased, despite the
overall category being in decline. The premium
5% 5% 120
end of the tequila market continued to erode
share from the premium ‘occasion’ (weddings/ 100
gifting) end of the Scotch market. 80
YOY Growth
CAGR
60
Total Agave Spirits vs Premium+ Share 40
20
0
0% 0% 9800 30%
9600 29%
9400
28%
9200
RTDs and evolving lifestyles
27%
9000 Volumes in the small but growing RTD category
26% were buoyant in 2023, boosted by the increased
8800
-5% -5% variety of brands and flavours present on shelves.
Beer Cider RTDs Spirits Wine 8600 25% Cocktails were especially popular due to their
2022 2023 perceived trendiness and convenience, especially
in the larger urban areas.
YOY Growth 2022–23 (%) CAGR 2023–28 (%) Volume (000s 9LC) Premium Plus share (%)
| FOCUS MARKETS
South Africa
Beer is booming flavours continues to attract younger LDA+
buyers. RTDs also help to facilitate spending
South Africa was one of the fastest-growing beer moderation, as consumers can opt for smaller
markets globally in 2023. Despite the difficult formats that are trendy and budget-friendly.
macro factors, the category has continued to
Category Volume Performance prosper in recent years, and has been a refuge
for cost-conscious consumers. The category RTD Sub-category Volume Growth (2023)
15% 15% continues to premiumise due to increased
demand for international beers. Consumers also
seek affordability via multipack formats, further Wine Spritzers/
boosting growth. Coolers
10% 10%
Beer Volume vs Premium+ Share Cocktails/

5% 5% 35 20% Long Drinks
34
15%
YOY Growth
FABs
CAGR
0% 0% 33
10%
35
32
-10% 10% 30% 50%
5%
31 32
-5% -5%
30 0% Premiumisation
2022 2023
Despite the downward trajectory of spirits
-10% -10% Volume (000s hL) Premium Plus Share (%) volumes in general, single malts, high-end
Cognac, whisky and more recently tequila are
Moderation driving RTD purchase holding their own. The latter is driven to a large
extent by developing cocktail scenes in Cape
-15% -15% Wine spritzers/coolers grew strongly, meeting Town and Johannesburg. South Africans place a
Beer Cider RTDs Spirits Wine consumer demand for both novelty and lower lot of importance on social status and image.
ABVs. Seen as a refreshing, lighter alternative to Cognac is also being used in cocktails, but this
more traditional beverages, the sub-category’s remains a niche limited to high-end venues.
YOY Growth 2022–23 (%) CAGR 2023–28 (%) wide array of recognisable brands in attractive
| FOCUS MARKETS
UK
The gin decline continues Legislative changes boost moderation
Gin fatigue among consumers post-pandemic, A new tiered duty structure has led brands to
coupled with increased competition, has triggered reduce ABVs on existing products and accelerated
declines across all price bands: this downward NPD in lower-alcohol lines. A number of ‘mid-
Category Volume Performance trajectory is expected to continue. Where once strength’ wines have emerged, and popular beers
flavoured gins led growth, they are now declining such as Carlsberg and John Smith’s now sit below
3% the 3.5% ABV threshold. Beer remains the driving
at twice the rate of traditional gins; imported
brands are also declining more rapidly than force behind volume growth in no-alcohol, with
domestic ones. Gin’s ongoing fall creates room for ‘zebra striping’ (alternating between alcoholic and
2%
growing categories such as RTDs and tequila. non-alcoholic drinks) becoming more widespread.
5%
No-Alcohol Beer Performance (2019–23)
1% UK Gin Consumption (2010–23) Volume (000s hL)
Volume (9LCm) 1,000
0% 0% 8 800
6 600
YOY Growth
400
CAGR
-1% 4
200
2 0
-5%
0 2019 2020 2021 2022 2023
-2%
Premiumisation in beer
-3%
-10% Despite waning overall category volumes, some
RTDs: innovation and convenience beers including stout, premium world lagers and
-4% non-alcoholic beers have continued to gain
A surge of NPD, coupled with the convenience traction. Premiumisation continues, albeit at a
and relative ‘affordability’ attributes of RTDs, have slower rate, with drinkers becoming more
-5% -15% driven growth in the category. Despite ongoing selective in their consumption and moderating
Beer Cider RTDs Spirits Wine cost-of-living pressures, premium RTD cocktails their alcohol intake, with these trends particularly
have gained a strong following, with the evident among Millennials and Gen Zs. Growth in
expediency of RTS (ready-to-serve) cocktails, now no-alcohol beer was spurred on by innovation
YOY Growth 2022–23 (%) CAGR 2023–28 (%) serving to broaden the appeal of the category. and better-tasting products.
| FOCUS MARKETS
US
External pressures create perfect storm Imbalanced inventory levels
For the first time in almost 30 years, spirits Inventory levels have remained high in the US –
consumption declined by 2% in volume. despite all distribution tiers focusing on stock
Conversely, the category experienced value cycling to reduce inventories in 2023. However,
Category Volume Performance growth due to inflation and premium plus there are signs that Cognac is starting to unwind.
perform weakened in sub-categories like tequila Normalisation in inventory levels is not expected
5% 5% and whisky. until 2025–26 as economic pressures continue to
loom through 2024 and demand remains soft.
4% 4% Overall economic pressures have prompted
consumers to moderate consumption or down- Focus on health and moderation
trade in their choices; younger LDA+ consumers
3% 3% No alcohol saw strong growth across TBA in 2023,
in particular are prioritising necessities. There was
a softening of up-trading through 2023 as, for albeit from a small base, driven by no-alc beer.
2% 2% many, the importance of obtaining an optimal This increase in moderation is being led by
price-to-quality ratio has magnified. Millennials who are more health-conscious and
1% 1% selective in their lifestyle choices than previous
generations, with beer overall being increasingly
Total Spirits Performance (2020–23)
YOY Growth
challenged by competing categories.

0% 0%
CAGR
272 $68,000
-1% -1%
270 $66,000 No-Alcohol TBA Performance (2019–23)
-2% -2% 268 $64,000
266 3 40%
$62,000
-3% -3% 264 30%
$60,000 24% 30%
262 2
-4% -4% $58,000
260 14% 20%
258 $56,000 20%
1 19%
-5% -5% 10%
256 $54,000
Beer Cider RTDs Spirits Wine
254 $52,000 0 0%
2020 2021 2022 2023 2019 2020 2021 2022 2023
YOY Growth 2022–23 (%) CAGR 2023–28 (%)
Volume (9LCm) Value (US$m) Volume (000s hL) YOY Growth (%)
Focus Categories
| FOCUS CATEGORIES IN DEPTH
Agave-based spirits Agave-based Spirits Development* (2019–23)

Volume (9LCm) vs Premium-Plus Share (%)
Overall growth is slowing, but momentum remains; 50 60%

easing of allocations is boosting growth outside the
core markets 48
55%
46
Varying nuances in the Americas numerous international markets,
50%
particularly at upscale, vibrant spots in
Across the American markets, distinct major cities, has heightened the profile 44
trends are evident. In the US, agave- of the category. Notably, Don Julio’s sales
based spirits reached new heights in 45%
in Australia almost tripled, a noteworthy 42
sales volume (+4% volume YOY). feat amid an economic slowdown.
Although growth was observed across
all tequila sub-categories, it was not as Growth outside the US and Mexico 40 40%
pronounced as in previous years. In
Mexico, both tequila and mezcal The category continued to expand
38
experienced negative volume growth, outside the core markets in 2023 as 35%
with the latter seeing a decline for the allocations eased, with significant
first time in many years, impacted by a growth in the UK, Netherlands and 36
slower on-premise sector and a shift to Japan, for example. 30%
lower-priced options. 34
The popularity of cocktails such as the
Premiumisation trend endures paloma and margarita and on-trade
25%
recovery has been central to tequila’s 32
Escalating recognition of high-end expansion. Falling agave prices also helped
brands worldwide is enhancing the agave to expand outside core markets.
30 20%
prestige of the category. The upper end
2019 2020 2021 2022 2023
of tequila has seen a remarkable
performance. Don Julio 1942’s launch in
Americas Europe Asia-Pacific Africa & Middle East CIS Premium+ Share
*Excludes GTR
Cognac Cognac Performance by Region (2022–28F)

YOY Volume Growth 2022–23 | CAGR 2023–28F (%)
Economic pressures, high stock builds and 15%

competition from other categories resulted in a
disappointing year for Cognac 10%
Declines in the US China faces uncertainty around 5%

proposed new tariffs on European
US Cognac had a disappointing year, imported brandies in 2024.
with volumes down by 17%. Decreased
0%
disposable incomes resulted in Europe down, CIS up
consumers switching to lower-priced
brandies or other spirits. Evolving Europe’s volumes declined by 6%, with
many down-trading to more affordable -5%
consumer preferences also contributed
to Cognac’s decline, as alternative spirits XO brandies due to inflationary
like tequila have been gaining pressures and Cognac’s dated image.
-10%
popularity. There are, however,
Cognac grew by 11% in the CIS region in
encouraging signs that progress is being
2023. Russia was responsible for most
made on unbalanced inventories. -15%
of the volume growth, as legalised
China flat parallel imports created opportunities
and there was a shift in pricing to more
Cognac volumes also declined in its affordable options. -20%
second-biggest market, China (-3% YOY).
XO Cognac declined due to decreased
business consumption occasions and a
crisis in the property sector. Other
lower-priced Cognac types benefitted
from consumers looking for cheaper
alternatives. The outlook for Cognac in
YOY Growth 2022–23 CAGR 2023–28F
Whisky (1/2) Whisky Sub-category Performance (2022–23)

Absolute Volume Change (9LCm) vs YOY Volume Change (%)
Overall category growth has slowed; the flourishing 12 12%

Indian whisky market remains a key driver of
growth in the category 10 10%
Persistent premiumisation also contributed to the issue, 8 8%

particularly in the Americas region,
India is the largest whisky market in the where there were dramatic declines.
world by quite some distance and was a Overall whisky is also facing challenges 6 6%
key driving force for the total category in in recruiting younger consumers.
2023 (+4% in volume YOY). Indian
consumers have long been drawn to the Highballs drive Japanese whisky 4 4%
aspirational status of imported Scotch
whisky, but the rising quality of Gains in Japanese whisky were largely
domestic whisky is starting to rival supported by the ongoing trend of 2 2%
imports in terms of prestige and pricing. whisky and soda highball serve, which is
In India, local single malts have gained mostly prominent in izakayas and made
popularity, narrowing the sales gap with a strong recovery in the on-trade last 0 0%
single malt Scotch, usually known year. This led to the sub-category
for its high quality. surpassing pre-pandemic volumes.
Centenary launches by Suntory and new -2 -2%
Economic climate impacts Scotch whisky releases of its rare Hibiki, Hakushu and
Yamazaki whiskies supported growth in
High inflation, more price-sensitive prestige-plus segment. -4 -4%
consumers and increasing competition Indian Japanese Other Irish US Whiskey Canadian Scotch
from categories such as US whiskey Whisky Whisky Whisky Whiskey Whisky Whisky
have seen global Scotch whisky volume
decline by 3% in 2023. High inventories
Absolute Volume Change 2022–23 Volume Change 2022–23
Whisky (2/2) Innovation in Whisky by Sub-category (2023)

Number of Global Whisky Innovations Launched
Demand for premium whisky continues to drive Bubble Size = Volume 2023 (000s 9LC)
innovation Scotch Whisky

Innovations: 625
Volume: 106m 9l cases
Scotch whisky leads innovation of collectors and investors. Johnnie 2022–23 % Chg: -2.7%
Walker was active in the market, 200
According to IWSR’s Innovation Tracker, debuting limited-edition launches in
Scotch whisky is the category with the blended Scotch (Johnnie Walker Blue
highest number of innovations launched Label Texas Limited Edition), legacy
in 2023, but overall innovation has blends (Johnnie Walker Master’s Cut 150
Number of innovations (2023)

slowed since the onset of the pandemic. Whisky) and blends supporting minority US Whiskey
creatives (Johnnie Walker Bold Steps, a
In the US, there has been a continuous
bottle celebrating British South Asian
demand from consumers for limited- Irish Whiskey
culture). 100
edition products, different flavour Japanese Whisky
profiles and innovative production AI in whisky
techniques. The huge demand for high-
end whisky led producers to diversify At least one whisky producer has 50
their product offerings at a very fast adopted, with the launch of the brand Other Whisky
pace. Many Bourbon, rye and US single Stateless Whiskey, which uses molecular Indian Whisky
malt whiskeys, along with other blended science to recreate rare and high-end
varieties, entered the market, taking liquids. The brand uses algorithms, AI 0
advantage of this consumer interest. and advanced chemical analysis in
production to make it indistinguishable Canadian Whisky
Collectors’ items from traditional products.
-50
In 2023, there was a flurry of innovation -6% -4% -2% 0% 2% 4% 6% 8% 10%
in limited-edition releases, cask finishes
and high-end malts in domestic and Volume Growth 2022–23 (%)
duty-free channels, quenching the thirst Innovation defined as the first appearance of a brand line in the IWSR’s annual database, including New-to-World Brands,
Brand Extensions, Flavour Extensions, Cross-Category Extensions, and Geographic Expansions
Flavoured spirits
Bitters/spirit apertifs are gaining share, boosted by cocktail culture; affordability also underpins growth
Flavoured Spirits Overview (2023 vs 2028F) Bitters/Spirit Aperitifs: Top 10 Highest-Growth Markets (2023)
Global Volume Share by Sub-category (%) Absolute Volume Change (000s 9LC)
50% 47% 46%

Nigeria
40% 36% Argentina
33% Russia
30% Brazil
Ivory Coast
20% Ukraine
12% 11%
Poland
10% 8% 7%
France
China
0%
Hungary
Liqueurs Bitters/Spirit Aniseed Fruit Eaux de Vie
Aperitifs 0 200 400 600 800 1000 1200 1400 1600
2023 2028F
Bitters and spirit aperitifs gain share Growth in quantity over quality
Bitters/spirit aperitifs are expected to continue to gain share as a result of a thriving Bitters/spirit aperitifs are proving popular in developing markets across the world,
cocktail culture, more sophisticated HORECA options and growth in the off-premise. especially in West Africa, South America and Eastern Europe. Often sold in sachets,
Aperol, Campari and Jägermeister all appeal to a younger LDA+ demographic, with local African bitters are driven by affordability and convenience. In Nigeria and
spirit aperitifs an easy-drinking and affordable option. Argentina, low-price bitters/spirits aperitifs performed strongly due to inflation.
Gin Gin Volume* by Region (2019-28F)

Volume (000s 9LC)
The gin boom is fading, with the category facing 120,000

challenges in many markets; the premium-plus
segment is losing share to standard-and-below
100,000
Growth axis shifting towards non-
traditional markets
Premium + gin slows
Most regions saw growth in gin last 80,000
year, with the exception of Europe and In 2023, premium-plus gin experienced
the Americas. Gin fatigue is becoming losses, with volumes declining by 7%.
more prevalent within traditional gin The ‘love affair’ with gin seemed to fade;
markets, and the category is this was particularly evident in Europe. 60,000
experiencing declines driven by Eight of the top 10 markets experienced
economic pressures and a challenging a substantial slowdown, most
on-trade environment, which is pronounced in the UK, Brazil, Germany,
impacting gin and tonic cocktails. Asia Australia, Spain and South Africa. The 40,000
retained the highest growth in absolute category overall was negatively
volume, and CIS experienced the impacted by inflation, a well-stocked
strongest growth (+69%) in volume
trade and consumers looking to other
terms, driven by Russia. In the 20,000
cocktails and categories.
Philippines, the number-one gin market
globally, the category thrived, boosted Consequently, the end of the gin boom
by the transition of local brandy is helping to create shelf space in key
consumers to local gin due to its markets for categories such as tequila 0
affordability and strong brand loyalty to 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028
and RTDs. Range rationalisation is also
local gins.
occurring, as retailers withdraw some
Asia-Pacific Africa & Middle East Europe Americas CIS
smaller brands to allow for faster-
moving gin brands and categories. *Excludes GTR
Wine Global Development of No/Low-Alcohol Wine (2013–23)

Volume (9LCm)
The structural decline of wine continues; premium- 12

plus is propping up the category, but value declines
in the US signal more headwinds
10
Weakening wine these changing dynamics are
challenging the category.
Global wine volumes contracted by a
further 4% in 2023 and are now 14.5% Moderation presents opportunities 8
lower than in 2019. The top five wine
markets continued to see further No- and low-alcohol wines have enjoyed
declines. Despite the reopening of the growth in recent years, albeit small; the
on-trade in China, Champagne, Cava stand-out sub-category has been low- 6
and Prosecco all declined as some of the alcohol sparkling wine. The beginnings
main consumption occasions of a non-alcoholic sparkling wine trend
disappeared. The removal of punitive emerged in Italy in 2023, with growth
tariffs on Australian wine in China in also seen in Germany and the UK. 4
2024 may help alleviate dwindling
Premium-plus wines perform better
volumes, however. Key European
markets such as France, UK, Germany Wine has been struggling for years with
and Italy are expected to experience changing consumer repertoires and 2
further losses in the forecast period. increased competition. Premium-plus
wines, however, maintained their share
US value declines
at 15% in 2023. Premium rosé variants
are countering the decline with fresh, 0
In the US, the largest wine market
easy-drinking styles that are colourful 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
globally, value growth in premium wine
turned negative in 2023. The US was and aspirational.
Low-Alcohol Sparkling Wine Low-Alcohol Still Wine
once a key value driver globally, but
No-Alcohol Sparkling Wine No-Alcohol Still Wine
Beer
Volume has declined, but value is surging ahead of 2019 levels; premium beers are boosting the category as
consumers seek affordable luxuries; no-alcohol beer is gaining traction
Global Beer Premiumisation: Historic vs Forecast
Volume Change vs CAGR (%) by Price Brand
Premiumisation props up the category

1.0%
• Global beer volumes declined by -0.8% in 2023, but it
was one of the more resilient categories. A poor
performance in the US and slowdown in Brazil,
Mexico and Europe dragged down overall growth.
-4.0% Growth in Asia was boosted by the full reopening of
Value Standard Premium Super Premium China and a thriving Indian beer category. Overall
volumes remain below 2019 levels (-1%), but value is
YOY Change 2022–23 (%) CAGR 2023–28F (%) an impressive 8% ahead of 2019.
No- and Low-Alcohol Beer Performance: Historic vs Forecast • Premium-plus beers gained share in 2023. All regions
Volume Change vs CAGR (%) saw premium beer grow, except Europe, where there
was a marked slowdown. Overall, premium-plus beer
No-Alcohol Beer benefitted from its relative affordability and down-
trading from spirits.
Low-Alcohol Beer
• No-alcohol beer grew by 6% in 2023, driven by
-2% -1% 0% 1% 2% 3% 4% 5% 6% 7% moderation and innovation. Growth was evident in
both developed and developing markets.
YOY Change 2022–23 (%) CAGR 2023–28F (%)
Cider Global Cider Market (2023)

Volume Share by Country (%)
The category’s performance was disappointing in

2023, but premium cider is gaining share
United States South Africa
8% 14%
Cider struggling to expand outside traditional markets
English-speaking countries account for over half of the world’s cider sales, despite
some growth from the rest of the world. This share is likely to remain as cider has
struggled in Australia and Spain due to competition from RTDs and Cava. Meanwhile,
category awareness has been increasing in the US with the National Cider Month
programme and return of Crispin. In South Africa, Signal Hill Products’ acquisition of
the Strongbow licence is expected to boost cider development.
Innovation as the driver for growth Rest of the World

New flavours continue popping up to keep the category afloat against dynamic RTDs.
In the US, locally produced brands have been on the rise, offering innovative flavour
47%
profiles. However, matching the innovation delivered by RTDs has remained difficult.
No/low-alcohol cider volumes are growing but remain very niche, accounting for just
over 1% volume share globally. Duty changes in key markets such as the UK may
incentivise cider producers to decrease ABV. Globally, premium ciders gained share
in 2023, representing 29% of global volumes in contrast to 27% in 2022.
Seasonality remains an issue

United Kingdom
Despite brand owner initiatives, the cider category still largely remains seasonally
driven. A poor summer is typically linked with a decline in volumes, as the category 31%
continues to be associated with socialising and hot weather.
RTDs
In 2023, RTDs were the only major category to post volume growth; cocktails and long drinks continue to
gain share, spurred on by premiumisation, convenience and affordability
RTD Sub-category Development
Volume (Millions 9LC) vs CAGR 2013–28F (%)
500 50%
400 40% RTDs were the stand-out TBA winner in 2023
300 30%
200 20%
100 10%
0 0% • RTDs benefitted from relative affordability, allowing
-100 -10% consumers to experiment without the initial outlay of
-200 -20%
a bottle of spirits or wine. RTDs also resonated with
FABs Hard Seltzers Cocktails and Hard Tea Wine Spritzers Hard Hard Coffee
those seeking convenience, particularly Millennials
Long Drinks and Coolers Kombucha and Gen Zs.
Volume 2023 CAGR 2023–28F
• RTDs come in a wide range of flavours and offer new
RTD Sub-category Share (2018–23) innovative packaging formats. RTS (ready-to-serve)
Volume Share (%) cocktails are also gaining traction due to their
convenience.
11% 9% 8% 8% 8% 9%
5% 13%
21%
25% 27% 24% 21% • Hard tea has garnered a cult following among those in
20% search of healthier options with real tea. Hard seltzers
18% 18% 19% 20%
are gradually being phased out of various international
62% 57% 50% markets as they continue to lose ground.
49% 48% 49%
• Line extensions from alcohol and soft drinks
2018 2019 2020 2021 2022 2023 companies are leveraging brand awareness and
access to unrivalled distribution networks. More
FABs Cocktails and Long Drinks Hard Seltzers Others
innovation is expected in this space.
Appendix and
Methodology
Methodology: market data
Definitions
The Global Trends Report comprises • Central delivery platform includes
volume and value data extracted from five-year forecasts (2023–28) and Category No-Alcohol Low-Alcohol
the IWSR database’s May 2024 release, trends for the total beverage
IWSR consumer tracking data, as well as alcoholic landscape.
third-party data, which is explicitly Still and Sparkling Wine 0.0%–0.5% ABV >0.5%–<7.5% ABV
referred to. • TBA refers to Total Beverage Alcohol,
comprising the categories beer, wine,
Data is collected using the following spirits, RTDs and cider.
methods:
• Data referred to as global (eg, ‘global Spirits and Spirit Alternatives – Liqueurs 0.0%–0.5% ABV >0.5%–<10% ABV
• Primary data: visits to 160 markets growth of X’) combines GTR (global
and interviews with brand travel retail) and domestic data, and
owners/distributors, volume data refers to consumption except where
collection, store checks and GTR’s exclusion is noted. Spirits and Spirit Alternatives – Non-Liqueurs 0.0%–0.5% ABV >0.5%–<30% ABV
interviews with key industry
stakeholders. • Ecommerce data displayed refers to
IWSR's Ecommerce database release
• Secondary data: multiple sources in May 2024. Beer 0.0%–0.5% ABV >0.5%–<3.5% ABV
including economic data, population
data, import and export data and • Value data is at retail selling price in
trade association data. US dollars (VAT inclusive) at variable
exchange rate. Cider 0.0%–0.5% ABV >0.5%–<3.5% ABV
• All data undergoes rigorous analysis,
cross-checking and validation to • Data displayed on focus market slides
provide a comprehensive, robust and refer to domestic data of that country
unless otherwise specified. RTDs 0.0%–0.5% ABV >0.5%–<3.0% ABV
accurate dataset at a granular level.
Methodology: consumer data
Definitions: Bevtrac
This data is sourced from the results of custom online surveys conducted in April 2023, August 2023 and March 2024. References in this context are to the 15 markets within
the Bevtrac universe (T15) – see page 83 for details of market scope and sampling approach.
Frequency and Intensity
Frequency refers to recalled consumption by drinkers within a named category. Low = once a month or less; Medium = once a week and 2−3 times a month; High = every day
and 2−3 times a week.
Intensity is the recalled number of drinks consumed on a typical occasion by drinkers within a named category. Low = 1 drink, Medium = 2−3 drinks, High = 4+ drinks.
Frequency x Intensity is a calculation of Frequency and Intensity for each beverage, multiplied by the number of different beverages the respondent drinks. The data is split
into tiers for a balanced distribution of countries within defined groups of Light, Medium and Heavy.
Net Scores are calculated by subtracting the % who agree with the statement on the left from the % who agree with the statement on the right. Tracking arrows (/) are
shown for YOY scores with a difference of 7+ percentage points (pp).
Net Scores (Recalled Volume and Spend Change) are calculated by subtracting the % of Drinkers who recall drinking/spending less in the past six months from those who
recall drinking/spending more. Tracking arrows (/) are shown for YOY scores with a difference of 7+ percentage points (pp).
For further information, please refer to Bevtrac 2024 Consumer Insights: Wave 1.
Methodology: consumer sample composition
Bevtrac consumer data is the result of custom online surveys conducted periodically*
Wave 1 2023 Wave 2 2023 Wave 1 2024
Total Drinkers Total Drinkers Total Drinkers
Market Drinkers Population: Sample Criteria**
Sample Population Sample Population Sample Population
Australia 1,296 1,018 1,325 1,027 1,227 1,032 Australian adults 18+
Brazil 1,227 1,007 1,309 1,043 1,271 1,029 Brazilian adults 18–64; income quotas monitoring
Canada 1,380 1,008 1,411 1,065 1,349 1,052 Canadian adults 19+
Chinese adults 18–64, representative of residents with a monthly household income after
taxes of ¥6,000+ in Beijing, Guangzhou, Shanghai, Hangzhou and Shenzhen; or ¥5,000+ in
China 2,174 1,882 2,314 2,099 2,163 2,046
Wuhan, Chengdu, Shenyang, Chongqing, Changsha, Zhengzhou, Guiyang, Suzhou, Nanjing,
Xiamen, Xi’an, Fuzhou and Dongguan
France 2,508 2,081 2,432 2,037 2,374 2,009 French adults 18+
Germany 1,326 1,007 1,324 1,038 1,285 1,017 German adults 18+
Indian adults 21+, with a monthly household income of ₹30,001+ before taxes,
India 2,737 1,879 2,704 1,958 2,632 2,000 representative of the 11 metro areas: Bangalore, New Delhi, Gurgaon, Hyderabad, Mumbai,
Pune, Kolkata, Lucknow, Jaipur, Guwahati and Bhubaneshwar
Italy 1,116 1,013 1,096 1,009 1,112 1,010 Italian adults 18+
Japan 1,671 1,004 1,729 1,005 1,681 1,063 Japanese adults 20+
Mexico 1,174 1,011 1,177 1,009 1,226 1,027 Mexican adults 18–64; income quotas monitoring
South Africa 1,218 1,002 1,203 1,013 1,216 1,014 South African adults 18–64; income quotas monitoring
Spain 1,177 1,006 1,162 1,016 1,163 1,033 Spanish adults 18+
Taiwan 1,448 1,005 1,614 1,109 1,422 1,001 Taiwanese adults 18–69
UK 2,462 2,015 2,436 2,016 2,341 2,016 UK adults 18+
US 3,150 2,014 2,864 2,019 4,166 3,030 US adults 21+
*Surveys conducted in April 2023 (Wave 1 2023), September 2023 (Wave 2 2023) and March 2024 (Wave 1 2024). **Nationally representative quota sample based on available census data
Methodology: consumer data
Definitions: Opportunities in Sustainable, Organic and Alternative Wine 2024
Data was gathered via the Vinitrac® online survey in 2023. See table for details of the
Drinkers
sampling approach. For further details, please refer to the Opportunities in Population
Sustainable, Organic and Alternative Wine report. Market 2023 Drinkers Population: Sample Criteria
Regular wine drinkers (RWDs): Those who drink wine at least once a month. In China,
this definition is amended to urban upper middle-class semi-annual drinkers of
Australian adults 18+; drank red, white or rosé wine at least once a
imported wine. Australia 1,007
month; and bought wine in the off-premise or in the on-premise
Canadian adults 19+; drank red, white or rosé wine at least once a
Canada 1,020
Chinese adults 18–54, representative of residents with a personal

monthly income before taxes of ¥6,000+ in Beijing, Guangzhou,
China 1,010 Shanghai, Hangzhou and Shenzhen; or ¥5,000+ in Wuhan,
Chengdu, Shenyang, Chongqing, Changsha, Zhengzhou and
Guiyang; drank imported grape-based wine at least twice a year
UK adults 18+; drank red, white or rosé wine at least once a

UK 1,006
month; and bought wine in the off-trade or in the on-trade
US adults 21+; drank red, white, rosé or blush wine at least once a
US 2,018
About IWSR
For more than 50 years, IWSR has been trusted by the leaders of global
beverage alcohol businesses as an integral part of their strategic planning and
decision-making processes.
We uniquely combine our proprietary longitudinal market data, consumer insights

and AI-enhanced data science with valuable on-the-ground human intelligence,
in more than 160 markets worldwide, to decipher what is really happening in the
global beverage alcohol market.
With access to our data, clients from across the drinks industry – including
multinational spirits, beer and wine businesses; packaging and ingredient
manufacturers; distributors and financial institutions – plan their strategies and
future investment with a reliable, consistent and complete understanding of the
global landscape.
Copyright
This report is for use as per your licence agreement and may not be shared with
users outside your organisation by email, intranet or other means.
© All content copyright IWSR Drinks Market Analysis Ltd. All rights reserved. This
publication, or any part of it, may not be copied, reproduced, stored in a retrieval
system, or transmitted in any form or by any means, whether electronic, mechanical,
photocopying, recording or otherwise without the prior written permission of IWSR
Drinks Market Analysis Ltd. This report is the product of extensive research work. It is
protected by copyright under the Copyright, Designs and Patents Act 1988. The facts
within this report are believed to be correct at the time of publication but cannot be
guaranteed. All information within this study has been reasonably verified to the
author’s and publisher’s ability, but neither accepts responsibility for loss arising
from decisions based on this report.
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Global Trends

03 Executive Summary 42 Health and Ethics

07 Premiumisation 49 External Pressures

15 Evolving Lifestyles 58 Focus Markets

26 Digital and Tech 69 Focus Categories

34 Social Drinking 80 Appendix and Methodology

Premiumisation Evolving Lifestyles Digital and Tech

• Up-trading and premiumisation • Affordability and down-trading • Celebrities and influencers

Social Drinking Health and Ethics External Pressures

• On-premise reset • Health and moderation • Inflation

Slower premiumisation Lifestyles are evolving Ecommerce normalises

On-trade reset Moderation movement Choppy waters

PREMIUMISATION EVOLVING LIFESTYLES DIGITAL AND TECH

SOCIAL DRINKING HEALTH AND ETHICS EXTERNAL PRESSURES

Less but better

Despite considerable challenges, embracing

1BWS (Beer, Wine, Spirits)

Up-trading and Premium+ Global Volume Share (2019–23)*

Enduring premiumisation trend impressive 163% in volume, driven by 14%

Cocktail culture Global RTD Cocktails and Long Drinks* (2019–2028F)

The blend of tradition, creativity and a thirst for new 250

Consumption settings evolving Seeking familiarity

Less but better Spirits* Performance by Price Band (2023–28F)

Consumers are not only focusing on health, but also 5%

prioritising quality and experience over quantity Chart KIV

Investing in the experience While some consumers are down-

Brands that offer high-quality flavour

The value of authenticity

Drappier states it is the first carbon-neutral Champagne house. Domestically, it has

The IWSR Opportunities in Sustainable, Organic and Alternative Wine* report

Premium craft cues

Overview: Evolving Lifestyles

Best quality for budget

Affordability and Recalled Changes in Volume and Spend

Recalled Volume Change Recalled Spend Change

Less More Less More

Impact from economic headwinds consumers switching to cheaper local -5

Pursuing value in the on-trade Pre-mixed cocktails benefitting

Tourism reset (1/2)

Diverse tourism growth patterns across markets

Despite outbound travel in most parts of the world

Source: UN Tourism Recovery Tracker 2024

Tourism reset (2/2)

Moderation as a No-Alcohol Penetration of Drinker Population by Market (T15)

In a dynamic environment, consumers, particularly 39%

RTDs offer cheaper trial

Tourism and alcohol

In Turkey, tourism experienced record-breaking figures in 2023. According to the

Despite hyperinflation and tax increases in Turkey, TBA managed to grow by an

Formats for tasting

Overview: Digital and Tech

The digital opportunity

Globally, ecommerce has slowed post-pandemic with

Celebrities and Global Growth of Celebrity Brands1 by Category

Big brewers are increasingly Celebrity brands continue to grow and

Ecommerce and AI Global Ecommerce Performance (2019–23)

Evolving consumer behaviour will require a re- 50 50%

focus towards a core ecommerce user base; NPD 40 40%

Value Growth (%)