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Global Gin Insights: 2018 Edition
Global Gin Insights: 2018 Edition
Insights
2018 Edition
IWSR 2013-2017 data, 2018-2021 forecasts from 2017;
report was produced prior to release of IWSR 2018-2022 forecasts.
About this report
We’ve taken a fresh look at how to deliver spirits category
insight. This reports series is focused on providing data
with meaning, backed up with actionable insights.
Humphrey Serjeanston
In his six years at the IWSR Humphrey has covered major markets in Europe, South America and the
Middle East/North Africa, and currently looks after Italy, Greece, Turkey, Malta and Egypt. Prior to
joining the IWSR Humphrey gained extensive experience in marketing and corporate communications in
publishing and investment banking following a degree in French and Italian at Cambridge and a stage at
the European Commission in Brussels. He is fluent in French, Italian and Spanish and in 2012 qualified for
the Advanced WSET Level 3 award in wine and spirits.
Alexander Smith
Alex has been with the IWSR for 15 years and has reported from all corners of the globe. He has a wide
contact base and deep understanding of the global markets having written about the alcohol industry for
24 years.
Before joining the IWSR, Alex worked for Shanken International in London and New York and UPI on
Capitol Hill.
Global Gin Insights 4
Table of contents
01 Insights
Asia-Pacific 91
India 92
Other markets 98
World view dashboard 1 Africa & Middle East 108
Market conditions 2 South Africa 109
Market key views 3 Other markets 115
Future category prospects 6 Travel Retail 117
Consumer drivers 11
03
Consumer key views 13
Product innovation 14
Product key views 16 Terms & Conditions
Industry structure 17
Around the directors’ table 24 Usage & copyright statements 123
02 Markets
The Americas 27
United States 28
Canada 35
Other markets 41
Europe 43
Spain 44
United Kingdom 51
Germany 57
Italy 64
France 70
Other markets 76
Global Gin Insights 5
Diageo: 40.7%
Africa & Middle East 9.2% CAGR ‘13-’17 Distell: 14.5% Gordon’s Gin: 34.5%
Bacardi: 4.2%
Diageo: 23.9%
Europe 8.0% CAGR ‘13-’17 Pernod Ricard: 13.6% Gordon’s Gin: 18.9%
Bacardi: 10.1%
Diageo: 46.0%
Asia Pacific -7.9% CAGR ‘13-’17 Bacardi: 8.2% Bombay Gin: 29.8%
Pernod Ricard: 7.1%
Diageo: 38.3%
Travel retail 8.1% CAGR ‘13-’17 Bacardi: 24.3% Tanqueray Gin: 66.2%
Pernod Ricard: 11.5%
Global Gin Insights 2
Market conditions
Growth trajectory: The 2017 IWSR data release the explosion of the flavoured segment kept it firmly in Signs of life: There are some signs of life at the
confirms gin’s impressive growth trajectory in many the ascendancy. premium-plus and super-premium ends of the market,
markets, with total sales rising at a double-digit clip. although they remain relatively small. However, it is
The Philippines remains the largest single market at not difficult to envisage premium gin replicating its UK
Further to run: The fundamental trends that led to the
over 18m cases, led by the dominant San Miguel brand; success in other key gin markets such as the US.
recent explosion in premium gin are very much in place,
most of it is low-priced, however, and for the purposes
suggesting that growth has further to run, at least in the
of this report not covered.
short term. Craft desire: Given the desire among consumers for
small, crafted, high-quality, differentiated products,
Widespread gains: Total gin sales (excluding low- combined with vodka fatigue, premium gin in the US
Premium share: Looking further ahead, it is worth
priced) rose by 7.4% between 2016 and 2017 to just seems likely to represent the next major leg of growth.
highlighting that premium gin sales by volume now
under 35m cases. Gin posted gains in 39 of its top 50
have a higher share than any other spirits category in
largest markets, with 19 of those markets growing at
the UK (except whisky). India in freefall: Gin’s performance in India was the
double digits.
other main disappointment in 2017. There the category
is in freefall and has a poor image.
Spot the difference: Ultimately, there can only be so
Europe at the heart: Europe remains the epicentre of
many consumers prepared to pay a price premium
the so-called “ginaissance”, led by Spain and the UK.
for one gin over another when the liquid has very little
Several other markets – such as Germany, Italy and
recognised product differentiation in the way that aged
France – are coming on strongly from lower bases.
Scotch whisky does.
Forecast
Where premium gin has an especially large market share – in countries like the UK,
for example – questions remain over the long-term continuation of this trend. Is
there enough differentiation between products?
“
Strategy
While growth looks set to continue in most global markets, the US remains the
glaring exception. Brand owners will be keen to turn positive signs at the upper end
of the market into more widespread and solid growth.
Gin is very much acting like craft beer –
“
consumers want local and they want premium.
Anna-Kai Tõrs, export manager, AS Liviko (Crafter’s)
Global Gin Insights 6
Still moving up: Globally, gin volumes (excluding low- New heights: In the UK, gin’s mixability outside the Small-batch: Rising interest in imported small-
price) will increase at a CAGR of 2.2% between 2018 gin-and-tonic, including a wide range of cocktails, will batch brands is fuelling the growth, as is the growing
and 2021, adding almost 1.5m nine-litre cases to 2017’s propel volumes to new heights. appreciation of classic gin cocktails and innovative
volumes by the end of the forecast period. brand releases, with an emphasis on distinct botanicals
and production methods coming from Europe.
Crucial variety: An ever-increasing number of brands,
Ubiquitous growth: Nineteen of gin’s top 20 markets especially at the premium-and-above end, are
are expected to grow volumes to 2021, with India the available, and this variety is crucial to the category’s Volume driver: In gin’s largest market including all
exception. The moribund gin category here is expected ongoing success as it ties in with consumers’ demand value segments, the Philippines, the category suffers
to dip below 1m cases (excluding low-priced) by the end for making their own individual choices, rather than from a tired image following years of strong growth as
of the period. following a mainstream trend. consumers increasingly opt for new, trendier categories.
Nevertheless, the Philippines will still be by far the
biggest market by 2021.
Leading the charge: The biggest growth market for gin Slowing growth: Gin’s growth in Spain is expected to
over the next five years will be the UK, followed by the slow, but ongoing investment, a recovering on-trade
US, Spain, South Africa and travel retail. environment and a robust demographic and economic
outlook will provide the category with room to grow,
further consolidating its position across several
consumption occasions. Flavoured gin will continue to
benefit from the strawberry trend.
Global Gin Insights 8
01.
Market overview
02.
Top gin brands in Canada, 2013-2017
1.02% CAGR ‘11-’15
03.
Top five gin owners in Canada, 2013-2017
04.
Gin in Canada by quality, 2013-2017
Global Gin Insights 36
Canada
A strong Canadian economy in 2017 led to sustained
growth in most wine and spirits categories. This further
supported the development of premium price segments
within several categories, most notably still, sparkling
and rosé wine and US whiskey.
Gin brands in Canada, % share 2013 Gin brands in Canada, % share 2017
Source: IWSR Source: IWSR
Top five gin owners in Canada, 2013-2017, retail value (000’s US$, ‘13 and ‘17 % share)
Source: IWSR
Owner 2013 2014 2015 2016 2017 % share ‘13 % share ‘17
Total $204,456.0 $216,026.7 $229,982.6 $244,653.5 $263,603.0 100.0% 100.0%
Diageo $78,551.9 $82,685.1 $86,838.0 $86,328.1 $95,027.6 38.4% 36.0%
Bacardi $55,951.7 $59,536.1 $64,157.3 $70,750.1 $73,933.9 27.4% 28.0%
Pernod Ricard $41,452.7 $43,674.8 $45,655.0 $47,565.3 $51,666.7 20.3% 19.6%
Wm Grants $6,393.3 $8,169.3 $9,874.1 $11,117.0 $12,580.0 3.1% 4.8%
De Kuyper $10,769.6 $10,422.2 $9,959.0 $9,380.0 $9,148.4 5.3% 3.5%
Others $11,336.7 $11,539.2 $13,499.2 $19,512.9 $21,246.5 5.5% 8.1%
Top five gin owners in Canada, 2013-2017, retail value (000’s US$)
Source: IWSR
$100,000.0
$80,000.0
$60,000.0
$40,000.0
$20,000.0
$0.0
2013 2014 2015 2016 2017