As the global beverage industry evolves, developing alcohol markets are emerging as the primary growth drivers over the next five years. According to a new IWSR report, high-population countries such as India, China, and the United States will lead the value gains, followed closely by Brazil, Mexico, South Africa, Vietnam, and Nigeria.
While mature markets show signs of stagnation, developing regions present exciting opportunities. Emily Neill, IWSR’s chief operating officer for research and operations, emphasized that most mature markets will experience marginal growth or even contraction, with the U.S. being a notable exception. Countries with younger demographics, rising disposable incomes, and an expanding middle class are poised for significant expansion.
India stands out as a rapidly growing market for alcoholic beverages. Jason Holway, IWSR’s India expert, highlighted that although India’s beverage alcohol sector remains less developed than those of mature nations, regulatory reforms in key states are reducing bureaucratic hurdles. As state governments recognize the industry’s contribution to tax revenues, more pragmatic policies are fostering growth. With a soaring population and easing restrictions, India’s alcohol market is set for substantial value gains.
In the first half of 2024, India’s total beverage alcohol volume increased by 4%, driven by strong demand for premium spirits, RTDs, and Indian single malts.
Vietnam and the Philippines have recorded impressive growth in premium beer and spirits sales. Rising incomes and shifting consumer preferences are fueling this upward trend, positioning these nations as key players in the expansion of alcohol markets.
South Africa continues to experience robust growth, particularly in beer, cider, and RTDs. The first half of 2024 saw strong volume gains, signaling an increasing appetite for premium alcoholic beverages across the continent.
In Latin America, Mexico and Brazil have witnessed a surge in RTD and premium beer consumption. Younger legal-drinking-age consumers and evolving social norms are driving this expansion, making these markets increasingly attractive to global beverage brands.
As consumer behaviors shift, developing alcohol markets are proving to be the most dynamic spaces for growth. Brands looking to expand must focus on emerging economies where the demand for premium and innovative products continues to rise. With evolving regulations, growing middle classes, and changing consumption habits, these markets will shape the future of the global alcohol industry.
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The Drinks Business’ Article: Which alcohol markets are the growth drivers of tomorrow?, written by Eloise Feilden
The image of the article is courtesy of © RossHelen via Canva.com
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