Which alcohol markets are the growth drivers of tomorrow?
Developing rather than mature markets are set to be the major growth engines for drinks brands over the next five years, according to a new report by IWSR. The post Which alcohol markets are the growth drivers of tomorrow? appeared first on The Drinks Business.
Developing rather than mature markets are set to be the major growth engines for drinks brands and alcohol over the next five years, according to a new report by IWSR.
Gains in value terms will be largely driven by high-population countries – India, China and the US – followed by the likes of Brazil, Mexico, South Africa, Vietnam and Nigeria.
However, developing markets are set to offer the biggest opportunities, according to Emily Neill, IWSR's chief operating officer research and operations.
She explained: "Gains from mature markets will prove more elusive – the US being a notable exception – with many seeing marginal growth or even contracting."
Countries with younger populations, rising disposable incomes and expanding middle classes are likely to see the biggest gains.
India's potential as a market for growth in alcohol is predicted to rise dramatically.
“While the Indian beverage alcohol market is less developed than those of mature nations, the regulatory landscape is becoming less bureaucratic in certain key states, with state governments taking a more pragmatic view on an industry that is often a significant contributor to tax revenues,” said IWSR’s India expert Jason Holway. “Combine population growth with less regulation, and the result is significant value growth.”
Indeed, total beverage alcohol volumes rose 4% in the first half of 2024 in India, buoyed by strong demand for premium-plus spirits, RTDs and Indian single malts.
Elsewhere, Southeast Asia is also set for growth. Vietnam and the Philippines recorded strong growth in premium beer and spirits.
In Africa, South Africa’s beer, cider and RTD categories saw robust volume gains in the first half of 2024.
In Latin America, a surge in RTD and premium beer consumption in Mexico and Brazil was driven by evolving social norms and younger LDA+ consumers.
Gains in value terms will be largely driven by high-population countries – India, China and the US – followed by the likes of Brazil, Mexico, South Africa, Vietnam and Nigeria.
However, developing markets are set to offer the biggest opportunities, according to Emily Neill, IWSR's chief operating officer research and operations.
She explained: "Gains from mature markets will prove more elusive – the US being a notable exception – with many seeing marginal growth or even contracting."
Countries with younger populations, rising disposable incomes and expanding middle classes are likely to see the biggest gains.
India's potential as a market for growth in alcohol is predicted to rise dramatically.
“While the Indian beverage alcohol market is less developed than those of mature nations, the regulatory landscape is becoming less bureaucratic in certain key states, with state governments taking a more pragmatic view on an industry that is often a significant contributor to tax revenues,” said IWSR’s India expert Jason Holway. “Combine population growth with less regulation, and the result is significant value growth.”
Indeed, total beverage alcohol volumes rose 4% in the first half of 2024 in India, buoyed by strong demand for premium-plus spirits, RTDs and Indian single malts.
Elsewhere, Southeast Asia is also set for growth. Vietnam and the Philippines recorded strong growth in premium beer and spirits.
In Africa, South Africa’s beer, cider and RTD categories saw robust volume gains in the first half of 2024.
In Latin America, a surge in RTD and premium beer consumption in Mexico and Brazil was driven by evolving social norms and younger LDA+ consumers. 
