Luxury Goods Diversification Creating Packaging Opportunities Worldwide

After the downturn in 2008, the global luxury goods industry has begun to recover. Whilst Western consumers are taking small steps back into luxury, the BRIC nations are generating new enthusiastic buyers of luxury brands. The global economic recovery also makes for a positive outlook for packaging; as the luxury market becomes increasingly diversified, the boundaries between luxury and mass are becoming increasingly blurred. This poses challenges but is also creating opportunities for packaging companies. 

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Hear Euromonitor Speak at the London International Wine Fair Conference 2012

Date: May 21, 2012
Location: London, UK

Event Description: Running the day before LIWF opens, the Conference: ‘The Future - Global Trends offer new opportunities’ has been designed to offer delegates a mixture of practical advice, blue-sky thinking, hard facts and an insight into the future. 

Flavours and Textures: How Local Consumer Taste Palates Are Defining Global Soft Drinks

Analyst Insight by Jonas Feliciano, Beverage Analyst at Euromonitor International

As global soft drinks companies compete with local manufacturers for share in developing nations, textures and flavours that cater to domestic consumer tastes take centre stage.

For generations, “a Coke and a smile” (and an unparalleled international distribution arm featuring local bottlers, licensed manufacturers, and a deep retail presence) was enough to capture significant market share in developing nations. The idea was simple. Much like blue jeans and rock and roll, Western beverages represented a lifestyle for which consumers in these markets would pay a premium. As of 2012, however, things have changed—growing consumer sophistication has put the focus squarely on developing products specifically tailored to consumer taste, to develop products with flavours and textures that local consumers find both familiar and satisfying. And, more often than not, these preferences are outside of the carbonate category.

Hear Euromonitor Speak at the London International Wine Fair 2012 Industry Briefing

Date: May 23, 2012
Location: London, UK

Building on the success of the last two LIWF Conferences, 2012 sees a stellar line-up of speakers tackle some of the major issues affecting the wine industry today and tomorrow.

Katharina Oldenkotte, Country Research Analyst, will be doing a presentation on ‘Wine in Western Europe: Serving the austerity and maturity blend maturity’. In this presentation, Katharina Oldenkotte will be looking at the market performance in Western Europe. She will also be giving some insights on the trends and drivers of the market. Finally, the presentation will look at what the future holds for wine in Western Europe.

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Beam Continues Narrow Geographic Thinking with Pinnacle Vodka Acquisition

Analyst Insight by Jeremy Cunnington, Senior Alcoholic Drinks Analyst at Euromonitor International

Beam’s US$605 million acquisition of Pinnacle Vodka and Calico Rum brand is a continuation of its strategy to focus on developing itself in a small number of core markets, primarily the US. All of Beam's most recent acquisitions - Effen, Skinnygirl and Cooley Distillery – have the US  in mind. The Cooley acquisition does give it a decent presence in Germany as well.   

The acquisition, narrow in geographic terms, has at least broadened the company’s category presence, as it has lacked a major vodka brand, especially since it announced in mid-April 2012 that its large volume Kamchatka and Wolfschmidt brands were being reformulated as liqueur style drinks.

South Africa: Spotlight on Key Market Trends in Luxury Goods

With value sales of R5.6 billion (US$684 million) in 2010, the South African luxury goods market ranked 23rd out of the 26 countries covered by Euromonitor International's luxury goods research and accounted for 0.4% of the global market. Click to tweet! In terms of real growth over the 2005-2010 period, South Africa ranked 10th, just behind Hong Kong and ahead of Singapore.

Over 2005-2010, four of the 10 categories researched recorded positive real value growth. Luxury electronic gadgets led the way with constant retail value growth of 68%, followed by fine wines/champagne and spirits (21%), super-premium beauty and personal care (14%) and luxury travel goods (7%). Luxury jewellery and timepieces (-4%), writing instruments and stationery (-7%), accessories (-14%), fine china and crystal ware (-16%), tobacco (-35%) and designer clothing and footwear (-9%) all registered negative growth. Click to tweet!

Spirits and Beer - Packaging for Shelf Impact

 

Beer and spirits can have the most shelf impact in terms of packaging. Rosemarie Downey, packaging research manager at Euromonitor International, states that while about 98% of all beer was sold in either a glass bottle or metal beverage can in 2011, aluminum bottles are starting to drive value sales, especially in developed markets. Growth in these markets is relatively slow, so unconventional types of packaging are a way to gain sales. Spirits are using the same method to attract consumers, whether it's different bottle designs or bright colours.

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Related Posts

• Packaging Grows Despite Economic Downturn (Video)
• Trends and Opportunities in Global FMCG Packaging (Webinar Recording)
• Drivers in the Packaging Industry (Video)

 

 

Alcoholic Drinks 2011, Part 1: Regional Performance and Prospects

The global alcoholic drinks industry once again demonstrated its relative resilience to wider economic concerns in 2011. This has come on the back of seemingly improving socioeconomic fundamentals that have fortified top line sales against the post-recessionary tide still engulfing other FMCG industries. Nevertheless, the increasingly divergent fortunes separating developed and emerging markets are fast transforming the latter into the main protagonists in the industry.

Discover more >> Download Alcoholic Drinks 2011 Part 1 Regional Performance and Prospects

Asia Pacific Markets Drive Pernod Ricard’s Growth

With net sales up by 11%, Pernod Ricard has unsurprisingly outperformed its major rival Diageo (7% growth) with its fiscal 2012 half-year results (July-December 2011). The company also achieved stronger volume growth. Although not reporting an overall volume growth figure, volume growth was in the high single digits, with the company's 14 strategic brands and 18 local brands, which accounted for 77% of net sales, both registering a 9% volume gain.

Alcoholic Drinks Continue to Make Gains in Emerging Markets

Analyst Insight By Jeremy Cunnington, Senior Alcoholic Drinks Analyst

As in 2011, emerging markets will continue to drive alcoholic drinks volume growth in 2012. Tweet this! All four emerging market regions - Asia Pacific, Latin America, Eastern Europe and the Middle East and Africa - will see volumes increase. In the case of Asia Pacific and the Middle East and Africa, gains will exceed 5%. Beer will be the key growth category but spirits and wine will also contribute.