The industry grew strongly despite lows during the global economic downturn
Los Angeles, CA (PRWEB) May 13, 2012
The Global Spirits Manufacturing industry enjoyed a period of exceptional growth leading up to the recession of 2009. Growth was driven by rising per capita spirit consumption in developing countries and increasing demand for premium brands. The industry was hit hard by the economic downturn during 2009, with recession in many key markets constraining demand, and a collapse in air travel weighing on business and duty-free sales. Growth picked up in 2010 and 2011, helped by strong sales of Scotch whisky and cognac in emerging markets. Overall, industry performance remained moderate, as developed markets contained demand.
The industry should record moderate growth of 2.7% during 2012, with emerging markets again providing most of the impetus for growth as debt-laden developed economies continue to struggle. Across the globe, consumers will move along the quality spectrum from basic to premium spirits brands and products, helping producers increase profitability. Scotch, vodka and bourbon are expected to be the best performing spirits over the year, while the ongoing emergence of cocktail culture in developed markets should support demand for liqueurs. IBISWorld estimates industry revenue increased at an average annualized rate of 4.1% over the five years through 2012 to a total of $98.3 billion.
The Global Spirits Manufacturing industry will exhibit another solid period of growth over the five years through 2017, albeit at a slower rate than during the previous five years. Industry performance will continue to be driven by brand premiumization and volume growth in developing markets. Asia will become increasingly important to the industry as a burgeoning population, rising disposable income and aspirational consumption drive demand for regional spirits as well as international Scotch, vodka and cognac brands. Firms will increasingly compete across a range of spirit products and will typically produce each type of both white and dark spirits. IBISWorld forecasts that Global Spirits Manufacturing industry revenue will grow over the five years through2017.
The level of concentration in the Global Spirits manufacturing industry is medium, with the top four players accounting for over 40.0% of industry revenue. In volume terms, the concentration is even lower. Although the overall industry is fragmented, the global premium brands are owned by a smaller group of major players. Of the premium spirits producers, concentration has been increasing with major acquisitions such as Pernod Ricard and Fortune Brands' acquisition of Allied Domecq. The major players have also acquired many smaller distilleries. For more information, visit IBISWorld’s Global Spirits Manufacturing industry report page.
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IBISWorld industry Report Key Topics
The Global Spirits Manufacturing industry acquires a range of ingredients such as grains that are distilled into alcoholic spirit beverages and packaged before being sold to liquor wholesalers, bars, casinos, restaurants, hotels and retail stores. This industry comprises establishments primarily engaged in one or more of the following: distilling potable liquors (except brandies); distilling and blending liquors; and blending and mixing liquors and other ingredients.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
About IBISWorld Inc.
Recognized as the nation’s most trusted independent source of industry and market research, IBISWorld offers a comprehensive database of unique information and analysis on every US industry. With an extensive online portfolio, valued for its depth and scope, the company equips clients with the insight necessary to make better business decisions. Headquartered in Los Angeles, IBISWorld serves a range of business, professional service and government organizations through more than 10 locations worldwide. For more information, visit http://www.ibisworld.com or call 1-800-330-3772.