Anaemic and subdued top line performance, a perfect storm of cyclical yet sustained macroeconomic pressures and a backdrop of structural lifestyle shifts – there is little doubt that the industry’s proverbial glass currently feels half -empty. However, opportunities still remain even as resilience is put to the test .
This report comes in PPT.
A toxic cocktail of sustained macroeconomic pressures, lifestyle shifts and geopolitical upheaval undermining consumer confidence is taking a toll on performances across the board. As black swan events and ongoing disruption can further derail recovery, the industry remains on the defensive.
As a strong bounce-back consistently fails to materialise, acknowledging both short-term, tactical challenges and underlying, longer term strategic pain points will be key in navigating an increasingly dark and stormy outlook. Nevertheless, the industry’s evolutionary adaptability and role as a node of socialising will continue securing its relevance in a time of permacrisis.
While aspirational consumption has been one of the main engines for growth over the past couple of decades, it will inevitably suffer in the face of unpresented pressures. Premiumisation will retain its relevance as an eclectic symbol of sophistication and status, but polarisation, and trading down and across will also gain traction as price point and positioning diversification become key.
Inherently volatile and capturing the zeitgeist of every decade – primarily through capturing the imagination of younger demographics – RTDs are once again at the forefront of growth, providing respite to an otherwise bleak operating environment. As hard seltzers fade, spirit-based and non-alcoholic RTDs will increasingly gain share of throat and mind.
The much vaunted rise of adult non-alcoholic beverages retains its enviable booming trajectory. A genuine and fundamental paradigm shift, and perhaps the greatest disruptor within the alcohol industry, the trend should not be seen as antagonistic to it but rather as symbiotic, and should continue to be embraced, with functionality cues at the forefront of innovation and brand activity.
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
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