Despite alcohol volumes declining by 1 per cent in 2024, there was growth in premium beer, agave, Indian whisky and Prosecco, according to data insights group IWSR.
Impacted by a move away from super-premium spirits and weakness in the Chinese market, beverage alcohol fell short of forecast expectations last year.
Total beverage alcohol (TBA) volumes across the world’s Top 20 markets declined by 1 per cent from 2023 numbers.
TBA volumes are now 2 per cent lower than before the Covid-19 pandemic in 2019.
Over that timescale, spirits (excluding national spirits) and RTDs are the only categories to have experienced growth, with beer volumes 2 per cent lower and wine declining by 21 per cent.
IWSR’s Chief Operating Officer of Research and Operations, Emily Neill, said on-trade closures and economic weakness prompted a -4 per cent downturn in China TBA volumes last year.
“A vibrant Indian market had been expected to partially offset some of these losses,” Neill said.
“But, while the country certainly posted better results than elsewhere, its performance was nonetheless below expectations.”
While China and the US experienced declines, Brazil, South Africa, India and Mexico all enjoyed growth.
“The post-pandemic consumer squeeze has inevitably resulted in a softening of the premiumisation trend, with any market value gains more related to price rises than consumer choices,” Neill said.
“Champagne, Cognac and malt Scotch results are a good barometer to gauge the economic climate, and the deteriorating demand for these products in 2024 illustrates the cautious nature of today’s consumer.”
No-alcohol and lighter alternatives are continuing to see strong growth across the top 20 markets.
“Despite some glimmers of hope, the low points were more evident than the positives during 2024,” Neill said.
“The shift away from super-premium-plus spirits, the ongoing economic weakness in China depressing demand, and the continued plight of wines in key markets all combined to mean that the alcohol category failed to meet modest expectations last year.
“What is more, 2025 looks set to bring choppier waters, with the sector on the front line of a trade war.
“The outlook remains unpredictable for the year as the threat of tit-for-tat tariffs could potentially trigger dramatic shifts in alcohol choices.”
Premiumisation offered a boost to the beer category in 2024, but the trend was noticeably softer in wine and appeared to go into reverse for spirits as consumers increasingly sought the best value for their money, according to IWSR.
RTDs posted a volume gain of 2 per cent in 2024, with all of the top 20 markets expanding, except for Australia, China, India and the UK.