A look at the UK spirits sector
Research and Markets has added the Spirits & Liqueurs Market Report 2015 to its offering.
The report examines the UK market for spirits and liqueurs, covering a range of white spirits, dark spirits and liqueurs, including whisky/whiskey, vodka, gin, brandy, rum and similar spirit drinks. The market is dominated by a relatively small number of major multinational companies; the majority of which own a range of well-established, popular regional and/or global brands across the various spirit and liqueur categories.
In 2014, the market is estimated to have grown in value by 1.5%, a relatively subdued level of growth in comparison to recent years. This drop in value growth in 2014 is a direct result of the freeze on alcohol duty on all spirits for the financial year 2014/2015; a measure announced by the government in its Budget 2014.
While the freeze on spirit duties is expected to result in falling value growth in the market, this move to halt the ever increasing level of taxation on spirits and other alcohol categories – under the annual 2% plus inflation increase enforced upon the industry between 2008 and 2014 through the alcohol duty escalator – is a positive move for the industry. With taxation on alcohol products rising significantly in recent years, coupled with the recent squeeze on consumer expenditure in the recessionary and post-recession period, the consumption of spirits in the UK – and virtually all other alcohol categories – has declined in volume terms.
With the alcohol duty abolished for spirits a year earlier than planned, in 2014/2015, value growth in the market is likely to remain comparatively constrained. However, the freeze on spirit duty is not permanent and inflation-linked duty increases will return, which – coupled with ongoing improvements in consumer expenditure, economic growth and rising demand for cocktails and mixtures – should provide healthy annual growth in the spirits and liqueurs market over the next five years, according to the company.
