The declining alcohol consumption trend will reverse over the next five years according to IWSR, with gin leading the revival.
While worldwide alcohol consumption declined 1.6% in 2018, IWSR expects the market to grow by 3% by 2023.
In terms of retail value, the global market for beverage alcohol in 2018 was just over $1trillion, a number which the IWSR expects to grow 7% by 2023 as consumers continue to trade up to higher-quality products.
The news follows Roy Morgan releasing data earlier this week that showed alcohol consumption has gradually declined in Australia over the past five years.
According to Roy Morgan's ‘Alcohol Consumption Currency Report March 2019’, 67.5% of Australians aged 18 and over consumed at least one type of alcoholic drink in an average four-week period.
This represents a gradual decline over the last five years from 70.1% recorded in 2014.
Pink gin leads spirits growth
The 2018 IWSR Drinks Market Analysis Global Database also shows gin was the leading global growth category in 2018, up 8.3% versus 2017, and is forecasted to reach 88million cases by 2023.
Pink gin was a key growth driver, helping the category sell more than 72million nine-litre cases globally last year. In the UK alone, gin was up 32.5% in 2018 according to IWSR, while WSTA says gin sales in the last quarter of 2018 grew 53% by volume and 59% by value, compared to 2017 - the largest growth by quarter on record for gin.
Diageo-owned Gordon’s Pink gin broke the million-case barrier less than two years since its launch, selling 1.21million nine-litre cases in 2018, according to IWSR figures.
Sales are also skyrocketing in the Philippines (the world’s largest gin market), which posted growth of 8%, fueled by a booming cocktail scene and premiumisation of the market.
By 2023, the gin category is expected to reach 88.4million cases globally, with particular strong growth in key markets such as the UK, Philippines, South Africa, Brazil, Uganda, Germany, Australia, Italy, Canada and France.
Gin consumption was up 33% last year in Australia
Even beer companies are jumping on the bandwagon - Lion recently bought a 50% stake in Four Pillars Gin.
Whisky and agave-based spirits boom
Spurred by innovation in whisky cocktails and highballs, the global whisky category increased by 7% last year, driven in large part by a strong Indian economy (whisky grew by 10.5% in India, as consumers continue to trade up in the category).
The US and Japan posted 5% and 8% growth, respectively. The IWSR forecasts whisky to grow by 5.7% CAGR from 2018 to 2023, to almost 581m nine-litre cases.
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