The global spirits market has been forecast to experience compound annual growth of 0.6 per cent by 2020, with whisky and tequila predicted to be at the top.
The latest forecast data, from the IWSR, predicts the growth will increase by almost 122m nine-litre cases by 2020, which will take it past 3.2 billion cases in total.
Whisky and tequila are forecasted to be the fastest-growing spirits categories, with a CAGR from 2014-2020 of 3.8 per cent and 2.9 per cent respectively.
The whisky boom is predicted to continue, with total annual consumption rising to 467.4m cases by 2020. This would see whisky overtake vodka to become the second-largest spirits category behind national spirits.
The IWSR’s global trends and innovation consultant, Sophia Holliday, says that despite the high numbers, growth is expected to be more conservative than previously expected.
“The lion’s share of the growth will stem from Asia, with China and India outperforming all other markets,” she says. “However, growth in North America, Africa and the Middle East and the duty-free markets will all contribute to the category’s overall expansion.”
According to the IWSR review, population growth and rising disposable income levels in many emerging markets will aid growth in spirits consumption.
However mature markets such as the US and the UK are set to draw back some of the attention from less-developed regions with attractive opportunities for volume and value development.