A new IWSR report predicts that it will take five years for the global drinks industry to rebound to market level similar to 2019 because of the ongoing coronavirus pandemic, warning of unprecedented and “long-lasting” impacts on global drinks industry.
Though worldwide beverage alcohol volume increased slightly in 2019, reversing
declines from the year prior, it will be five years before the global industry rebounds from the ongoing Covid-19 crisis, according to comprehensive new research from IWSR Drinks Market Analysis.
Total global alcohol consumption, led by increases in beer and ready-to-drink products, grew by +0.1% in volume and +3.6% in value in 2019, but losses in the months-long near complete shutdown of bars and restaurants across the world this year has not been offset by upticks in liquor retail and e-commerce.
IWSR expects this to lead to double-digit declines in 2020, which IWSR estimates will take until 2024 to reach 2019 pre-Covid-19 levels (though in the UK and US, IWSR forecasts that pre-Covid-19 beverage alcohol volume levels likely won’t return until after 2024.) Global travel retail, severely affected by widespread travel restrictions, will see a particularly harsh decline in 2020 but is expected to reach pre-crisis levels by 2024.
“While we’re still assessing the full impact of the current Covid-19 situation, it’s very clear that the pandemic is set to cause a deeper and more long-lasting after-effect to the global drinks industry than anything we’ve experienced before.”
“While we’re still assessing the full impact of the current Covid-19 situation, it’s very clear that the pandemic is set to cause a deeper and more long-lasting after-effect to the global drinks industry than anything we’ve experienced before. Even the downturn following the 2008 financial crisis was less severe than what we are seeing now,” says Mark Meek, CEO of IWSR Drinks Market Analysis, the leading authority on the global beverage alcohol market. “In many ways, 2019 was perhaps the last ‘normal’ year for the drinks industry.”
Click to the next page below to read IWSR’s additional findings on beer, spirits, win, read to drink beverages and e-commerce.
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