Industry Analysis & Industry Trends
The Spirit Production industry has performed well during the past five years. Challenging economic conditions and the long-term decline in spirit consumption have constrained domestic consumption of spirits for most of the period. However, this has been more than offset by a boom in demand for exports, particularly of Scotch whisky. Demand for whisky has soared in emerging markets across Asia, Latin America and Africa due to aspirational spending by young affluent consumers. Robust export demand and product innovation are estimated to underpin growth of 6.4% in 2014-15. During the five years through 2014-15, revenue is estimated to grow at a compound annual rate of 4.9% to £5.6 billion.
Industry profitability is estimated to grow moderately over the period... purchase to read more
Industry Report - Industry SWOT Analysis Chapter
The Spirit Production industry is in the mature phase of its life cycle. Spirit consumption has been in steady decline since 2004-05 as the ageing population, changing health and social attitudes towards alcohol, rising taxation and regulation, and increasing competition from other alcoholic beverages has weighed on demand for spirits.
During the decade through 2019-20, industry value added is forecast to grow at a compound annual rate of 6.2%, compared with GDP growth of 2.1% over the same period. Robust export growth has helped to offset flat domestic consumption.
The industry displays many characteristics typical of a mature industry. A number of new entrants have entered the industry. Increasing retail consolidation and the prevalence of own brands has exacerbated this... purchase to read more