Thriving Global Alcohol Market: Emerging Trends and Risks
OCTOBER 7, 2022
- Despite the health risks associated with alcohol consumption, the total volume of alcoholic beverages consumed worldwide grew by about 3% in 2021, after a 6% reduction in the previous year. The global alcoholic beverages market is expected to continue growing at a compound annual growth rate (CAGR) of more than 1%.
- The alcoholic beverages industry has demonstrated resilience: despite global market-related disruption, alcohol sales have accelerated. Distillers and vintners have experienced stronger sales recoveries compared to brewers.
- In many global markets, the COVID-19 pandemic enhanced the impact and growth of key industry drivers, such as the development of e-commerce, premiumisation,and a surge in sales of make-at-home cocktail ingredients, as well as no- and low-alcohol
- During Covid-19, heavy drinkers in the United Kingdom increased their alcohol consumption, while Japan observed a decline in alcohol consumption. To promote alcohol consumption, the Japanese government launched a nationwide competition that invited youngsters to come up with ideas to encourage liquor consumption.
- Alcohol companies score negatively on ISS ESG’s SDG Solutions Assessment due to their potential to prevent realization of the “Combating hunger and malnutrition” and “Ensuring health” elements relevant to the UN-backed initiative.
- The core business of alcohol companies raises a range of potential Environmental, Social, and Governance (ESG) risks for investors, in areas including reputational risks, regulatory intervention, legal action, and environmental impact.
