Cider/perry volume growth now hovers just above stagnation; a considerable fall from the dynamic performance of just a few years ago. Declines in key markets, notably the US and South Africa, have led to a significant deterioration at the global level.
However, this topline trend masks a range of underlying opportunities – the geographic expansion of cider’s popularity, rising interest in artisanal ciders and wine-inspired innovation, to name just a few. These themes are among those explored in a recent Euromonitor International global report, which looks at the current state and future potential of cider/perry.
Outlook for Cider/Perry by Market, 2016-2021: Wide Geographic Spread of Future Hotspots
Source: Euromonitor International
This report looks at a range of cider topics and trends, including the following:
High Hopes for Value in Challenging Core Markets
In mature markets, cider brands are beginning to diverge in terms of positioning and consumer appeal. At one end of the spectrum are affordably-positioned, mass-produced ciders and at the other, premium, traditional-style versions.
Between these two extremes lie products which look to tap into the popularity of premium cider, often through innovations such as flavour sophistication. These brands work to maintain a high-quality image, but with a wide commercial reach and appeal.
With volumes stagnating, or worse, in a number of core cider markets, companies are increasingly looking to utilise a premium positioning to generate value growth. This is creating clear challenges in brand differentiation.
New Regions on the Rise
Awareness and interest in cider remains negligible across much of the world, presenting a major opportunity for producers, many of which are working to widen their international presence and raise the category’s profile across markets.
Eastern Europe holds considerable promise due to the rapid rise in popularity cider is experiencing in a range of markets across the region. However, as highlighted by the changing fortunes of the US, the cyclical nature of the category means a note of caution should be added to the medium- to long-term fortunes of the region.
Within the Middle East and Africa, Israel is expected to see the highest absolute growth over 2016-2021, ahead of markets that may at first glance appear to hold more growth potential.
Future Outlook: Innovation and Evolution
Cider/perry remains a highly cyclical and seasonal category. Cider has evolved through fashions such as the over-ice trend, flavour-led launches, spirit-ciders (“spiders”) and wine-inspired formats. While some of these examples have proved more durable than others, innovation remains crucial in maintaining consumer appeal
Ice cider is an example of niche, but successful innovation. Originating in Quebec, the original recipe utilises the distinct local conditions which allow apple trees to grow, but also to freeze in winter, to create a high-quality speciality product. Pioneered in one small area, commercial ice cider is now available in a number of international markets.