By Andy Young
The global spirits market is forecasted to experience compound annual growth of 0.6 per cent by 2020, noticeably slower than the previous five-year CAGR of 3.6 per cent.
The latest forecast data from the IWSR predicts the global spirits market will grow by almost 122m nine-litre cases between 2014 and 2020, which will take it past 3.2 billion cases by 2020.
The IWSR's global trends and innovation consultant, Sophia Holliday, said in The IWSR Forecast 2015-2020 Global Review: "Growth is expected to be more conservative than previously as many markets experienced strong recovery of volumes in the aftermath of the global recession.
"The lion’s share of the growth will stem from Asia, with China and India outperforming all other markets. However, growth in North America, Africa & Middle East and the duty-free markets will all contribute to the category’s overall expansion."
According to the IWSR review, population growth and rising disposable income levels in many emerging markets will aid growth in spirits consumption, but also mature markets such as the US and the UK are set to draw back some of the attention from less-developed regions with attractive opportunities for volume and value development.
The whisky boom is predicted to continue, with total annual consumption rising to 467.4m cases by 2020. This would see whisky overtake vodka to become the second-largest spirits category behind national spirits.
Whisky and tequila are forecasted to be the fastest-growing spirits categories, with a CAGR from 2014-2020 of 3.8 per cent and 2.9 per cent respectively.