Sparkling wine, spirits and beer drive UK market growth

The UK alcohol market has returned to growth following years of continuous decline, according to the latest WSTA market report. 

Sparkling wine and champagne led the growth in volume at 27% and 2% respectively. Beer and spirits volumes also increased by 3%.
Modest growth in off trade volumes (2%) and a slowing decline in the on trade (2% volume and value) resulted in an overall volume growth for the first time in five years, the WSTA Q2 2015 report says.

Miles Beale, chief executive of the Wine and Spirit Trade Association said: “It is welcome news that consumers are benefitting from lower taxes and the impact of lower inflation. It is clear that the retailers and producers are passing these on and that consumers are finally getting the break they deserve after years of inflation-busting tax rises."

However, while the overall picture is positive, the report warns that the market remains fragile with many categories continuing to face tough trading conditions. Still wine (-2%), fortified wine (-5%) and cider (-1%) volumes were all in decline.

The wine market remains in overall decline with volumes falling by over 2% over the year. Wine volumes have not shown overall growth since 2010 and in that time the market has declined by nearly 15%.

Beale added: “The wine market in particular continues to fare less well with further volume decline for wine in both on and off trade. This highlights the concern over the Government’s decision not to include wine in the 2% alcohol duty cut for all other products.
“Although the freeze on wine duty was an improvement the WSTA will continue to make the case to government to for equal support for the wine industry and the 270,000 jobs in the UK that it already supports.”