Product Innovation Represents a Major Growth Driver in the Alcohol Beverage Industry, According to a New Report by Global Industry Analysts, Inc.

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GIA announces the release of a comprehensive global outlook on the Alcoholic Beverage Industry. Manufacturers, suppliers and companies globally, streamlined product ranges and strategies in order to deal with the aftermath of the global economic crisis. New product launches such as flavored alcoholic beverages, ready-to-drink options and low alcoholic beverages are increasingly being accepted by consumers and are anticipated to serve as an impetus for the long term growth in the alcohol beverage market.

Alcoholic Beverages: A Global Outlook

Follow us on LinkedIn – Alcoholic beverages have long been an integral part of different customs worldwide. Demand for alcoholic beverages is primarily driven by factors such as above-average economic growth, increasing disposable incomes, and rising middle-class in various developing countries. In the near future, developing countries are expected to propel volume growth, while mature markets are expected to provide higher profit margins. Transformations in the global alcohol market with evolving consumption patterns resulting from demographic changes are redefining the product development and marketing strategies adopted by manufacturers. Premiumization, which emerged as a key trend influencing the alcoholic beverages industry, is expected to continue in both the emerging and mature markets. Among all regional markets, the emerging markets of Eastern Europe and Asia-Pacific are expected to register strongest growth during the next five years in line with better economic conditions. Growing affluence and disposable income levels are expected to expand the consumer base for spirits and increase the trend towards trading up to premium brands in national markets such as India. Growth in the more developed markets across North America and Western Europe would be driven by the trend towards premium products and active participation of the on-trade sector, as the economies in these markets gradually recover.

Surge of the cocktail trend, rising number of women drinkers and consequent need for low or mild alcoholic beverages and growing need to socialize are certain factors that have contributed to the growing need for newer and innovative products. Premium beverages, which represented the prime growth drivers during the pre-recession period, recorded worst decline in sales in recent years as cash strapped consumers shifted to better priced drinks such as beer. Beer and wine products tagged as ‘upscale’, recyclable packing, products focusing on health benefits and organics witnessed a considerable surge in popularity especially among women and young adults. Flavored beer, innovative packaging and premium creations were all strategies to attract young consumers. While beer was a favorite among the young adults, the older and aging population preferred wine.

Excellent vintages and record wine consumption all across the world, made 2010 a prosperous year for the wineries. The year 2012 is expected to be a much better year in terms of sales and innovations, as wine consumers open up to exploration. The strategic introduction of smaller bottles of wines is expected to increase number of drinking occasions and attract young consumers. The smaller packages also provide consumers with an opportunity to try newer and different varieties of wine. Rose wines are regaining popularity among the female consumers due to low alcohol content.

The spirits industry, an expensive and premium beverage sector compared to beer and wine, witnessed significant drop in sales during the economic crisis. In an attempt to reduce the consumption of cheap variants, manufacturers launched newer high-quality products in Africa, Asia, Europe and Latin America. However, manufacturers had to deal with challenges such as promoting responsible drinking, high prices of raw material and ingredients and requirement for high-quality products at low-costs. In developing countries imported spirits are promoted as lifestyle products and consumers have been receptive to such marketing efforts. Growth in the spirits sector across the emerging markets has been influenced by several cultural factors, including increasing urbanization. This, in turn, has been offering consumers with greater access to spirit brands by the development of on-trade and off-trade establishments, apart from improving employment opportunities and increasing disposable income levels.

The research report titled “Alcoholic Beverages: A Global Outlook” announced by Global Industry Analysts, provides a collection of statistical anecdotes, market briefs, and concise summaries of research findings. The report offers a bird’s eye view of the industry, highlights latest data processing trends, and demand drivers as well as the impact of recent economic recession on the industry. Discussions on the industry’s most noteworthy regional markets, the US, Canada, Japan, Europe, Asia Pacific, Latin America, Middle East and Africa are amply detailed with unbiased research commentary and punctuated with a number of information rich market data tables designed to provide the reader a rudimentary understanding of the prevailing market climate. Also included is an indexed, easy-to-refer, fact-finder directory listing the addresses, and contact details of companies worldwide.

For more details about this comprehensive industry report, please visit –
http://www.strategyr.com/Alcoholic_Beverages_Industry_Market_Report.asp

About Global Industry Analysts, Inc.
Global Industry Analysts, Inc., (GIA) is a leading publisher of off-the-shelf market research. Founded in 1987, the company currently employs over 800 people worldwide. Annually, GIA publishes more than 1300 full-scale research reports and analyzes 40,000+ market and technology trends while monitoring more than 126,000 Companies worldwide. Serving over 9500 clients in 27 countries, GIA is recognized today, as one of the world's largest and reputed market research firms.

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Global Industry Analysts, Inc.
Telephone: 408-528-9966
Fax: 408-528-9977
Email: press(at)StrategyR(dot)com
Web Site: http://www.StrategyR.com/

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