GLOBAL: Premium spirits outpace cheaper brands on back of health worries - IWSR
The IWSR points to new growth in the spirits market
A recovering global economy and health concerns over excessive drinking helped push premium spirits growth above non-premium in 2011 compared to the year before, a new report has revealed.
The value of the premium spirits market grew by 21% in 2011 year-on-year, according to a report from the International Wine & Spirit Research (IWSR), released today (2 July). The non-premium market increased by 11.9% over the same period, while gin, tequila, flavoured spirits and cane in standard and low-priced segments declined, the report said.
“The premiumisation trend can be attributed to consumers’ desire to drink less but of better quality, while also thinking about the health implications of excessive drinking and also following the fashion trends of premium brands,” the IWSR said.
The group pointed to global GDP growth of 3.9% in 2011 year-on-year as a sign of recovering consumer markets. Strongest premiumisation growth came from Asia-Pacific where 2011 GDP growth was highest, at 7.8%.
The report also said premium spirits outpaced non-premium in volume terms, posting a 7.7% increase year-on-year for 2011 compared to 6% over the same period for lower-priced brands.
“In many markets, tax increases are reducing the price gap between standard and premium brands, encouraging up-trading as well as squeezing out the low-priced segments,” the IWSR said.
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