Despite the rising popularity of spirits like vodka and whisky, beer continues to hold its ground as the most consumed alcoholic beverage worldwide, Reuters reported. A recent report by the World Spirits Alliance, drawing on data from Oxford Economics and alcohol market research firm IWSR, highlights significant shifts in global drinking preferences but confirms beer's dominant position.
The report reveals that in 2022, 2.67 billion cases of spirits were sold globally, approaching the 2.8 billion cases of wine sold the same year. The growth in spirits is attributed to a trend towards premiumization and the increasing popularity of cocktails, which has seen spirits gradually displace wine in many markets. Predictions suggest that if current trends continue, spirits volumes could soon surpass those of wine.
However, beer remains by far the most popular alcoholic beverage. In 2022, beer accounted for a staggering 75.2% of total beverage alcohol volumes, dwarfing both wine at 10.4% and spirits at 9.9%. This statistic underscores beer’s broad appeal and entrenched cultural significance across the globe.
While spirits are gaining ground, particularly in terms of value, beer's share of total beverage alcohol sales remains robust. Spirits accounted for 40% of total sales value in 2022, followed closely by beer at 38.1%, with wine trailing at 17.6%.
The report highlights that certain spirits categories are set to see significant growth. Indian whisky, for instance, is projected to grow by 50 million cases between 2022 and 2027, making it the fastest-growing spirits category. Tequila, rum, and gin are also expected to see substantial increases, with growth ranging from 10 to 20 million cases. In contrast, cognac and armagnac are predicted to grow the least within the spirits sector.
The spirits industry made a substantial economic contribution in 2022, adding approximately USD 730 billion to the global economy. This figure encompasses the entire value chain from farming and manufacturing to shipping and retail sales in shops, bars, and restaurants.
The wine industry, in particular, faces significant challenges, including a global supply glut, adverse weather conditions, and declining demand, which has reached a 27-year low. Beer companies are also navigating the shift towards spirits in some markets, but their vast consumer base and cultural relevance provide a strong buffer against these trends.
While spirits are indeed on the rise, beer remains the undisputed leader in the global alcohol market by volume. Its continued popularity ensures that it will remain a staple in social and cultural settings worldwide, even as the market evolves and consumer preferences shift.
