Consumption of premium alcohol brands surges – Euromonitor
By Felicia Nwosu
Leading market research firm, Euromonitor International, has revealed that despite the prevailing economic challenges and high inflation, that premium alcohol brands have continued to grow in sales.
The global research body made the revelation on its LinkedIn handle recently.
Meanwhile, iNigeria, Uchenna Uzo, Professor of Marketing and Academic Director, Africa Retail Academy, an initiative of Lagos Business School (LBS) recently shared a similar conversation on his LinkedIn handle.
Outlining the various segments, Spiros Malandrakis, Head of Alcoholic Drinks,said this ranges from champagne to ultra-premium English gin and from Tequila to prestige Dark Rum and non-alcoholic spirits and aperitivo-embracing bitters.
He added that premiumisation remains firmly in the spotlight, stressing that despite the economic disruptions which have continued to stymie growth, premiumisation in key categories.
He further stated that champagne, gin, tequila and dark rum continues in face of steepest inflationary spiral in history
The report added:”This is premiumisation against all the odds. Aspirational momentum is overcoming the cost of living crisis. In fact, iconic segments that are now intricately associated with aspirational consumption and increasingly higher end offerings are among the top sales performers,”
The Euromonitor chief affirmed that the purchase of premium wines, spirits and non-alcoholic alternatives by consumers during the steepest inflationary spirals in modern history reflects the diverse range of consumer behaviours and motivations that exist within a population.
He averred that for many consumers indulging in premium products is seen as a way to enjoy occasional luxuries or as a form of escapism.
Malandrakis added that consumption of premium wines and spirits can also be viewed as a status symbol or a reflection of personal taste and sophistication, adding that some consumers are willing to allocate a portion of their income to maintain their desired lifestyle, impress others and demonstrate their social standing or expertise in the field of wines and spirits.
“The inexorable march towards ever more premium offerings has been a key theme and driver for the alcohol industry for decades and there is no category that remains impervious to the trend’s relevance and long-term appeal. As one of the steepest inflationary spirals in modern history places extraordinary pressure on drinkers’ discretionary incomes, the premiumisation mantra is being put to the test and the results are proof of how solidly embedded it has now become. Contrary to expectations and parallels to previous recessionary cycles, there are no significant signs of sustained or heavy trading down – at least not just yet!”
Uzo said that it has been amazing that despite the economic headwinds and the challenges in the country that the alcoholic segment of the Nigeria market is still recording unprecedented growth..
“Unbelievable! While Nigeria’s inflation rate soared from 13.25% in 2020 to a staggering 22.79% in early 2023, a shocking trend has been brewing beneath the surface. Nigerian spending on alcoholic beverages has surged from $570 million in 2020 to $1.4 billion in just the first half of 2022! What’s behind this spending spree on alcohol, even when money is tight? It’s a head-scratcher. Let’s figure it out together! Is it a way to de-stress with friends and family in challenging times? Or a sign of Nigeria’s resilience?”
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