Global alcohol sales predicted to increase
The latest report by the credit rating agency Moody’s on the global alcoholic beverages industry predicts that in the next 12-18 months the sector will increase operating profits by several to even 15 percent after "unprecedented drops" in the first half of 2020 caused by the pandemic.
The authors of the report predict that sales of alcoholic beverages will "accelerate" in 2021 if points of sale are opened and the revenues of alcohol producers are to return to the pre-pandemic level as early as 2022.
The report also highlights the strong demand for high-proof alcohol in the off-trade segment (excluding eateries), especially in the US. March and April were the time when off-trade sales grew double-digit, which was certainly driven by the strong trend of online alcohol sales.
Moody's analysts expect global sales of alcoholic beverages to grow by up to low double digits in the next 12-18 months, with luxury alcohols expected to continue to outperform basic products.
Strong premiumisation trend
The demand for premium spirits is and is expected to remain strong. As the authors of the report write: ‘The trend of premiumisation in the industry was particularly pronounced in the case of spirits, which are gaining market share from wines and beers, partly thanks to better innovation in the premium segment.’
Premium spirits have "far surpassed" the lower priced products, and Moody's analysts expect this trend to continue despite an overall decline in volume this year.
Source: www.thespiritsbusiness.com
