Global market review of functional soft drinks ... - Just-Drinks

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Chapter 1 Market overview
Chapter 1 Market overview
While the broad perception today is that the global spirits market is rapidly
approaching hegemony under the leadership of a number of multinational
companies, the reality is somewhat different. It may surprise some, but the top
ten m ultinationals in volum e term s only have around a xxxx% m ark et share of
the global spirits industry between them . In As ia, it is even lower, at just xxx%.
In Eastern Europe it is similarly low. In North America, by comparison, the
share is xxxx% and in Northwest Europe it is xx%. The share accounted for is
much higher if viewed in value terms.
National and local producers continue to meet most of the demand in these
large Asian and Eastern European markets. Many of these products,
particularly in Asia and Latin America, fall outside of the mainstream
categories that Western producers specialise in.
The five largest spirits categories are: Chinese spirits (xxxm cases, xx%
global share), vodk a (xxxm cases, xxxx% share), shochu/soju (xxxxm cases,
xxxx% share), non-Cognac brand y (xxxxm cases, xxx% share) and Brazilian
cachaça (xxxxm cases, xxx% share). The m ultinationals are scarcely
represented in such vast categories.
There are numerous other smaller local categories – not all in Asia – where the
multinationals are also scarcely represented. These include fruit eaux de vie,
bitters, aguardiente, arrack, bitters and pisco, to name just a handful.
Many view the market for these local products as largely divorced from the
market for international products. This is a contentious point. The IWSR
believes that the fortunes of these two sectors are very much interlinked for a
variety of reasons.
Much of this vast non-Western-style consumption remains in cheap unbranded
product. So there is a corresponding opportunity for the big national producers
to trade consumers up – initially from unbranded products into local or national
brands. For instance, in India, the move from cheap unbranded so-called
country spirits into the local branded sector has driven the dramatic growth of
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