GLOBAL: Premium Champagne, spirits defy financial downturn - research

By Andy Morton | 5 October 2012

Premium Champagne and spirits have increased volumes since 2001

The global financial crisis has failed to dent the rise of the premium-and-above Champagne and spirits market as it almost tripled in value over the past decade.

The global sector grew from US$26bn in value in 2001 to $72bn last year, or by 52m nine-litre cases, according to the IWSR Global Premium Report 2012 released yesterday (4 October). Growth was driven by the US, which accounted for 37.7% of volumes, the report said.

But aspirational consumers in emerging markets such as Brazil, South Africa and India also added to the category as economies strengthened and product availability rose, it said.

The premium market, which includes products priced between $20 and $30, grew by 12% last year to $35.9bn in value. Meanwhile, premium volumes rose by 5.6% last year, while volumes in the super-premium category ($30 to $50) increased by 11.1% and in the ultra-premium ($50 to $100) category by 13.6%, the report said.

“This shows that not only are consumers trading up, but they are searching out ever-more prestigious products,” IWSR said.

It added that many multinational companies have responded to this demand by amplifying their range of premium-and-above offerings, while smaller niche and craft brands have also emerged on the market.

An ISWR report in August said global Travel Retail sales increased by 7% last year driven by Asia-Pacific.

Expert analysis

The IWSR Global Premium Report 2012

The IWSR’s first analysis of the global market of Champagne and spirits retailing at over $US20 broken down by region, premium price qualities, category, major international company and brand.

Sectors: Emerging markets – BRIC, Spirits, Wine