Industry Analysis & Industry Trends
Despite declining demand from developed markets, rising incomes and aspirational consumption in emerging markets have kept the industry growing over the past five years. During the next five years, companies will continue seeking growth opportunities in emerging markets, particularly in Asia. Major distilleries will continue aggressive acquisition activities, and large companies will increase market share through premiumization. As a result, revenue is expected to maintain its upward trend... read more
Industry SWOT Analysis
The industry has been growing at different rates in different regions, with high growth in North and Central Asia, moderate growth in the United States and stagnation in Europe. However, this state reflects differing rates of GDP growth. Industry value added (IVA), which measures the contribution of distilleries to GDP, is expected to rise at a 2.2% annualized 10-year rate from 2008 to 2018. Meanwhile, global GDP is expected to outpace IVA growth at a 5.4% annualized rate during the same 10 years. In mature markets with stagnant consumption levels, spirits prices have been rising and facilitating industry revenue growth. However, profitability is relatively stable because producers are mainly passing on increasing input prices... read more