Spirits, liqueurs, wine and more. Premium products will be the darlings of 2021.
Not only is the ever-current Covid-19 pandemic influencing our everyday and professional lives, but also the global markets including that of the alcoholic drinks sector. Over the last few years, the trend had already tended towards premiumization with increasing research into raw materials and the creation of innovative blends. But with Covid-19 now have an impact on developments in various sectors, these trends have become even more pronounced in the spirits, liqueurs and wine sectors.
Recent market analysis in a global report by IWSR examines the change agents and drivers that are moulding the entire alcohol industry. This research has identified a number of key macro trends to watch. So, let’s take a look at them.
Sophistication and premiumization
The search for authenticity has been made possible through consumers’ improved awareness and their spending power. These days the trend is to drink less but better. And the following data points have emerged from the report:
- Premium and super-premium alcoholic drinks will increase their market share to 13% by 2024, as consumers continue to favour quality over quantity.
- In value terms, China is shown to be the biggest world market for premium wines and liqueurs – and the United States is close behind.
- Both countries are expected to see premium alcoholic drink brands grow their market share in terms of volume by about one percentage point between 2019 and 2024.
All of these data points tell us that premiumization is far from a declining trend. Quite the contrary, it will take centre stage in 2021 and the near future.
Tradition has increasingly gone hand-in-hand with innovation until now. But in recent years we have seen a generational change in buyer behaviour. Today, millennials are leading the market – a consumer category born into the era of globalisation, that’s committed to ethics and values.
The IWSR report highlights several factors that show how the pandemic is altering purchasing behaviours.
Adaptation to restrictions and the closure of bars and restaurants has held consumers back, especially younger generations, in forming new consumer habits. These trends will linger in the near term with takeaway drinks that are in conveniently sized packaging.
We find tequila among the alcoholic drink categories that should continue to benefit from the premiumisation trend, which has grown by 15% per annum between 2015 and 2019. And there are other spirits such as rum and gin that are already popular as well as aperitifs, ready-to-drink products and wine.
Health and ethical consumerism
Lastly, premiumisation is an easy fit with health and ethical consumerism. Covid-19 has led consumers to pay greater attention to their personal health, but it has brought an awareness of the environmental impact of every choice made.
Consequently, the consumer is becoming more moderate, reducing the volume and frequency but also favouring superior quality drinks with the idea that they are healthier. With the ever-growing low or zero alcohol drink offering, buyers have more opportunity to pay attention to their health these days.
Talking of these types of drink, non-alcoholic beer will increase its market share to 4.45% by 2024, just from the consumer’s desire to experiment.
Organic wine is worth a mention as it will gain even more ground in the territories of France, Germany, the United Kingdom, Japan and the United States.
The bottom line
Premiumisation in the alcoholic beverage world is a trend that has been around for a number of years. And Covid-19 has only served to highlight the demand for better quality from the end consumer.
It’s clear that spirits and premium wines merit unique packaging to set themselves apart from the rest. This is why, at Tapì, we are constantly looking for new closure solutions dedicated to the people who work in this sector. Starting with our Signature collection, made up of closures produced in the finest quality materials, typically wood and ceramics, that can be customised with artisan finishes. Through to our Collection range where design, innovation and technology come to life in exclusive closures offering the perfect seal for any type of product packaging. Then we come to Revò, Tapì’s creative lab, that designed Mekano – the cutting-edge mechanical closure. And right up to LEI, Tapì’s sustainable core that encompasses our eco-friendly products, technology and business best practices.
Get in touch to find out more about our closure solutions!