IWSR analyzes current situation on the alcohol market

After the financial crisis that erupted over a decade ago, changes in consumer demand have had an impact on the global alcoholic beverages market. Currently, industry is again under pressure due to the global COVID-19 pandemic. According to the IWSR analytical company, these two situations share a number of similarities - both the financial crisis and the pandemic have resulted in increased consumption at home, stagnating prices, and falling sales in some sectors. At the same time, it can be expected that expensive and rare alcohol will be one of the categories that will be least affected by the negative effects of the crisis.

IWSR (International Wine & Spirit Research) is a company dealing with research and analysis of the global alcohol market, regularly providing reliable sources of information about the current and predicted market situation. In a recently published report, the IWSR analyzes the impact of the 2008 economic crisis on the alcohol industry and on this basis tries to predict how the COVID-19 pandemic may affect the market in the long term.

Premium spirits market

In the years 2008-2009, sales of “mid-range” wine and spirits decreased, while sales of premium products slowed down, but maintained their upward trend. We can expect history to repeat itself because the economic consequences of a pandemic reduce consumers' income. It should be noted here that affluent consumers will not feel the economic impact as much as the man in the street. According to IWSR, high-end products are likely to remain stable and may even grow, especially as an investment.

One can already observe increased activity on the market of rare, quality whisky, and forced isolation seems to induce connoisseurs to look for new drinks to consume. The increase in demand for exclusive whisky with limited supply will lead to higher prices of older malts in the coming years.

The current situation will certainly have a deeper and more lasting impact on the craft alcohol market, as their products are sold mainly in gastronomic establishments. It can also be expected that the sale of alcohol both in gastronomic establishments and in the so-called "Travel retail" will fall more than during the crisis in 2008.

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