Spirits set to overtake wine globally

London — More cases of spirits such as vodka and whisky than of wine are set to be sold globally, a report from the World Spirits Alliance predicted on Wednesday, as drinking preferences have shifted.

The report, whose predictions came from Oxford Economics and alcohol market research firm IWSR, said 2.67-billion cases of spirits were sold in 2022, almost as many as the 2.8-billion cases of wine sold that year.

“Should current trends in both categories continue, spirits volumes will soon surpass those of wine,” it said.

Why it matters

Trends, including a shift towards drinking fewer, more expensive drinks, notably a growing range of cocktails, have seen spirits displace wine.

The wine industry has faced a global supply glut, difficult weather and falling demand, which has hit a 27-year low. Beer companies are also grappling with a shift to spirits in some markets.

By the numbers

• Beer accounted for 75.2% of total beverage alcohol volumes in 2022, followed by wine at 10.4% and spirits at 9.9%

• In terms of the value of sales in 2022, spirits accounted for 40% of total beverage alcohol sales, followed by beer at 38.1% and wine at 17.6%

• Indian whisky is set to be the fastest growing spirits category between 2022 and 2027, growing by 50-million cases, with tequila, rum and gin all expected to rise between 10-million and 20-million cases. Cognac and armagnac are set to grow the least in the spirits market.

• The production and sale of spirits contributed some $730bn to the global economy in 2022, when activity ranging from farming and manufacturing to shipping and sales in shops, bars and restaurants is included.

Reuters