Global alcohol drink trends: developing markets and premium products drive growth.

Global volume sales of alcohol drinks reached almost 200 billion liters in 2004, up by 11.4 percent between 1999 and 2004. Overall alcohol drinks growth was driven largely by demand for beer in the two key emerging regions of Asia-Pacific and Eastern Europe, each of which registered double-digit volume growth during the past few years. In the second segment of a two-part global beverage review, Euromonitor International looks at the key regional trends affecting demand in 2004 and glimpses at 2005 and beyond.

Beer in Asia-Pacific

The impact of rising demand for beer in emerging markets has been a decline in sales of local spirits, particularly in the key growth market of China. This move toward drinks with a lower alcohol content has been aided by initiatives from the government as well as a growing consumer interest and ability to purchase non-traditional types of alcohol. Elsewhere in the AsiaPacific region, however, Japan and South Korea saw economic difficulty--aging populations and health concerns exerted a negative impact on beer sales--while in Indonesia, beer struggled to recover from the effect of the Bali bombings on the country's tourist industry.

Vietnam, by contrast, has been a star performer, having grown by almost 50 percent between 1999 and 2004. Its meteoric rise in the past few years, due in part to a strong economy, has prompted a number of brewers to seek a presence in this market. Carlsberg recently signed a strategic agreement with Hanoi brewer while Anheuser-Busch signed a cooperation agreement with Sabeco. The outlook for beer in this market looks very promising with Euromonitor projecting a compound annual growth rate (CAGR) of more than 6 percent for the next five years.

Other developments in the region

According to Euromonitor, China was also the most …