Global spirits manufacturing market: $301.0 billion industry by 2018

Press release   •   Aug 08, 2013 16:42 BST

Rising per capita spirits consumption in emerging countries and increasing demand for premium brands are driving revenue growth for the global spirits manufacturing market. However, 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.

Although developed markets constrained demand, overall industry performance remained moderate, with industry growth estimated at an average rate of 2.2% annually during the five years to 2013. In 2013, emerging markets will again provide most of the impetus for growth as debt-laden developed economies in Europe continue to struggle. Consequently, revenue will grow about 3.3% to $241.6 billion in 2013.

During the next five years, companies are expected to continue seeking out growth opportunities in emerging economies through mergers and acquisitions. For example, major company Diageo made three acquisitions in emerging markets in 2012 including Halico, Sichuan Shuijingfang Co. and Ypioca cachaca, which are leading brands in the Vietnamese, Chinese and Brazilian markets, respectively. Consolidation is expected to enable companies to boost profitability to 9.8% in 2018, from 9.5% of 2013 revenue, and make it easier for companies to pass on rising input prices to consumers. Further, rising disposable income in emerging markets will also help drive higher volume sales and revenue during the next five years.

For more information on the Global spirits manufacturing market, please click here: Global spirits manufacturing market

Follow us on Twitter @CandMResearch issues news updates and report summaries covering all major industries and sectors. The service provides additional client monitoring and timely alerts to breaking industry and sector news leading the day's business headlines. News articles, written by our staff, contain additional analyst insight, providing value added insight for our readers. News updates and real-time alerts on newly-released market reports are also available from our Facebook page, Twitter feed @CandMResearch and RSS links. We also welcome inquiries from business journalists and the news media.