New analysis from the IWSR, published yesterday, revealed that total beverage alcohol (TBA) volumes worldwide dipped by 1% in 2024.
This was led by a 3% decrease in the US market and a 5% drop in China, with all categories reporting declines in China and all but RTDs following a downward trend in the US.
The IWSR named political and economic uncertainty as the key driver in the US. Meanwhile, China’s real estate crisis, weakening economic growth and ageing population were named as key factors.
Nonetheless, the IWSR said that both countries do have bright areas for growth.
In the US, non-alcoholic beers, tequila and hard teas are thriving. The insights company noted that non-alcoholic beer volumes grew by 23% in 2024 and are expected to expand at a CAGR of 18% to 2029. Hard tea also saw a large volume growth of 31% in 2024.
Meanwhile, more premium tequila options are expected to grow in popularity, according to Marten Lodewijks, president of IWSR US: “In this new phase of more measured growth for tequila, focused on premium price points, Reposado has emerged as a clear winner.”
In China, the primary area of growth is found in premium beer and premium/super-premium wine, which are in growth.
Shirley Zhu, research director at IWSR China, explained: “Although consumers in China are now drinking less beer, they are looking for quality, which has led to rapid premiumisation. This has been driven by local brewers releasing premium lines and locally produced foreign brands.”
Likewise, while China’s overall wine market is expected to shrink at a CAGR of 2% until 2029, its premium and super-premium price bands are forecast to expand at CAGRs of 1% and 3%, respectively.
White spirits are also growing in China, with gin volumes hitting 20% growth during 2024.
Later in the same report, the IWSR named Canada as a country to watch. It said that the trade war with the US could “open up opportunities for domestic brand owners and non-US imports”.
Spain was also named as a market that’s primed for success thanks to its accelerating premium-plus beer growth.
“While total beer volumes in Spain were flat in 2024 – and are predicted to grow at a volume CAGR of less than 1% through to 2029 – premium beer grew by 3% last year and is expected to expand at a CAGR of 2% between 2024 and 2029,” said the IWSR.
In addition, wine in Spain experienced a 3% volume growth in 2024, with white wine specifically up 5%.
