Value outpacing volume – Euromonitor
Value is moving ahead of volume in the Irish drinks market as continued strong demand for premium products shows a strong appreciation of Irish-sourced according to market research provider Euromonitor International’s new Alcohol Drinks in Ireland 2018 report.
13 July 2018 | 0
Provenance remains an important attribute when purchasing alcohol and Euromonitor predicts that gin will continue to record strong volume sales as it remains fashionable amongst both male and female consumers.
Alcohol Drinks in Ireland 2018 also points out that in drinks retailing today, “There is considerable competition from discounters and internet retailing”. It points out, for example, that Lidl has reacted to the popularity of Gordon’s Pink Gin by launching two varieties of pink gin last November.
The report also predicts that value will move faster than volume with some challenge ahead.
“Total volumes of alcoholic drinks will grow marginally over the forecast period,” states Euromonitor, “There is expected to be stronger growth in value terms at constant 2017 prices, with much of this attributed to the anticipated introduction of Minimum Unit Pricing as well as the growing demand for premium and super-premium products.”
Manufacturers are already reacting to this, particularly within wine and beer where several lower ABV products are now available for consumers with the anticipated quality of lower ABV products improving.
2016 witnessed an increase in cross-border trade for alcoholic drinks due to the devaluation of Sterling following the Brexit Referendum in June 2016 according to the report which goes on to point out that, “Excise duty in Ireland is amongst the highest in Europe and an increased level of cross-border travel in Ireland saw growth in the level of private imports”.