BRIC alcoholic drinks market driven by growth in China

Press Release   •   Jun 05, 2013 16:18 BST

Brazil, Russian, India and China (BRIC) are the emerging and fastest growing countries within the alcoholic drinks industry and had a total market value of $264,531.8 million in 2011.

Limited volume growth in traditional markets means many alcoholic beverage marketers are looking to the BRIC region for growth.

China represented the leading country among the BRIC nations in 2011 with market revenues of $99,202.9 million. This was followed by Russia, Brazil and India with a value of $93,339.9, $41,597.0, and $30,392 million, respectively.

Rising income levels in the BRIC nations should boost demand for premium brands. By focusing on emerging markets, alcoholic drinks makers will be able to offset the expected weakness in Western Europe, where consumption is likely to wane given the weak economic environment.

When considering the importance of the 'better value-for-money' trend, it's generally the case that the cheapest beverages available in developing countries are local specialty spirits. However, it's also important to bear in mind that not all specialty spirits are cheap: drinks companies are beginning to produce premium specialty spirits designed for both consumption in local markets and for export.

Growth in whiskey, brandy and rum is being driven by the rising consumption of these categories in the Indian market including both domestic brands (at all price points) and high-end foreign imports.

As well as being an overwhelmingly western drink, wine is also overwhelmingly an older person's drink. It's increasingly socially acceptable for men to drink wine even without a meal while spirits and mixers are also gaining share.

Sales of luxury alcohol are growing in the BRICs, as both disposable incomes and alcohol consumption increase. But while developed countries have similar consumption drivers, this is not the case in the BRICs. Acknowledging cultural diversities and accumulating local knowledge will be crucial for the successful navigation through these markets.

For more information on the BRIC alcoholic drinks market, see the latest research: BRIC Alcoholic Drinks Market

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