Brand Innovators 2024 Outlook: Spirits & Alcohol
The global beverage alcohol market will grow steadily over the next year, despite challenges in the political and economic landscape.
The global beverage alcohol market will grow steadily over the next year, despite challenges in the political and economic landscape. The category is projected to reach $21.6 bn globally by the end of 2023 and grow about 1% each year until 2027, according to IWSR, which expects global growth in markets including India, Mexico and Brazil and a softening in growth in the US and China.
Since Covid, the whiskey category has seen growth in premiumization, in which consumers are looking for higher quality products. This desire for luxury will stick around for consumers that can afford it next year and will help drive revenues for the category.
“The Single Malt Scotch category as a whole saw growth through COVID with consumers opting for more premium, high quality brands,” says Greg Levine, vice president of marketing, single malts at William Grant & Sons. “Last year, growth began to stabilize with off trade consumption slowing and a consumer shift back to the on trade. That shift was further challenged by industry-wide supply chain and stock challenges. Through this year, we’re seeing premiumization trends continue as consumers invest in luxury spirits. Glenfiddich and The Balvenie, specifically, remain in high demand around the world. The whiskey market is growing fastest at the luxury end, which is where our Scotches are well suited with range and stock.”
“Consumers will continue to seek high-quality and authentic cocktail experiences,” says Craig Sherman, vice president, marketing at Rémy Cointreau Americas. “We will continue to try and find ways to tell unique stories that entertain and educate about the quality, craftsmanship, and authenticity behind Cointreau.”
The wine category is predicted to grow 2.1% in 2024. The category has seen innovations in recent years with higher quality boxed wine, non-alcoholic options and ready-to-drink beverages on the rise. “While trends, of course, are constantly evolving, we do expect to see wine-based beverages continuing to rise in popularity, as well as ready-to-drink options similar to our Chandon Garden Spritz bringing naturality and craft expertise to the world of fine drinks,” says Cécile Artigalas, chief marketing officer at Chandon (LVMH).
The alcohol category will likely see revenues coming from non-alcoholic drinks in 2024. In recent years, the sober curious movements among Gen Z and millennials have driven the non-alcoholic beer category. Expect continued growth in this area of the alcohol business next year.
“The popularity of non-alcoholic beers continues to surge, and it’s a safe bet that trend will only accelerate in 2024,” says Joyce He, Guinness brand director. “More people than ever are searching for alternatives that still deliver the distinct flavor profile and taste of their favorite beer. Brewers – ourselves included – will continue exploring innovations that meet the needs of these consumers, without sacrificing quality. Another prediction: Guinness 0 – our NA brew with the same look and taste as Guinness Draught, just non-alcoholic – will continue to gain share as more and more adult drinkers try it.”