Premium alcohol brands have continued to grow and sell in the face of the global cost of living crisis, according to market research company Euromonitor International.
The firm’s head of alcoholic drinks, Spiros Malandrakis said premiumisation remains “firmly in the spotlight” across Champagne, spirits and alcohol-free alternatives.
“This is premiumisation against all the odds,” he said. “Aspirational momentum is overcoming the cost of living crisis. In fact, iconic segments that are now intricately associated with aspirational consumption and increasingly higher end offerings are among the top sales performers.”
According to Euromonitor, the purchase of premium wines, spirits and non-alcoholic alternatives by consumers during the “steepest inflationary spirals in modern history” reflects the diverse range of consumer behaviours and motivations that exist within a population.
“The inexorable march towards ever more premium offerings has been a key theme and driver for the alcohol industry for decades and there is no category that remains impervious to the trend’s relevance and long-term appeal,” Malandrakis said. “As one of the steepest inflationary spirals in modern history places extraordinary pressure on drinkers’ discretionary incomes, the premiumisation mantra is being put to the test and the results are proof of how solidly embedded it has now become.
“Contrary to expectations and parallels to previous recessionary cycles, there are no significant signs of sustained or heavy trading down – at least not just yet.”