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Gloucestershire Business News

Beer and cider losing their popularity, says study

The consumption of alcoholic drinks is falling, according to new research.

A study by International Wine and Spirit Research (IWSR) suggests the global market for alcoholic drinks shrunk by 1.3 per cent in 2016 compared with an average rate of 0.3 per cent in the previous five years.

The reasons for the accelerated downward trend include a faster decline in beer, a reversal of trends for cider and slowing growth for mixed drinks.

Cider declined by 1.5 per cent after years of solid growth. The markets responsible for this reversal of trends were South Africa, which saw decline following a period of growth, and especially the United States, where volumes collapsed by 15.2 per cent after years of double-digit growth.

Beer declines accelerated in 2016, with the category down by 1.8 per cent, compared with a five-year rate of 0.6 per cent.

The global trend is a reflection of developments in three of beer's largest markets, China, Brazil and Russia, which all saw steeper declines than in previous years, declining at 4.2 per cent, 5.3 per cent and 7.8 per cent respectively in 2016.

While global spirits grew overall by 0.3 per cent, vodka declined by 4.3 per cent last year.

Volumes were boosted by gin (up 3.7 per cent), tequila (up 5.2 per cent) and whisky (up 1.7 per cent).

The negative trend in vodka is largely due to steep volume losses in Russia (down 9.3 per cent), which nevertheless remains vodka's largest market by far. Key growth markets for total spirits last year were China, the US and Mexico.

Wine was flat overall (down 0.1 per cent), with sparkling wine growing at 1.8 per cent and still wine down by 0.5 per cent. This is roughly in line with the trend of the previous five years.

Despite the figures, the IWSR has predicted improved fortunes for the total global drinks market, with consumption forecast to increase by 0.8 per cent until 2021.

Whisky is tipped to be one of the main growth drivers as volumes are expected to grow by 650m litres by 2021.

Global consumption of mixed drinks is expected to increase by more than 400m litres over the next five years, while sparkling wine is likely to add more than 220m litres.

Beer is also forecast to show strong growth in many Asian and sub-Saharan Africa markets.

What do you think of the figures? Email mark@moosemarketingandpr.co.uk 

Picture credit: pixabay

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