Main Regional Features And Latest Updates•Asia places the second highest out of the six regions inBMI's Alcoholic Drinks RRI. Its Q318 score of 56.1 is an improvementfrom the Q218 score of 55.9. The region maintains its position in our global RRI behind North America and Western Europe(NAWE), but ahead of Central & Eastern Europe (CEE).•South Korea maintains its position as the top-ranked market with a score of 71.6, ahead of second ranked Vietnam, which scores65.5. South Korea places second in a global ranking, with the country scoring well due to its high per capita consumption andIndia Food & Drink Report | Q3 2018bmiresearch.com25
total spending levels.•Asia has one market in the global top 10 (South Korea), with Vietnam (14th), Australia (15th) and China (16th) and Taiwan (20th)in the top 20. Japan (22nd) and India (24th) follow closely behind the top markets, as both score above 60 out of 100 in ourAlcohol RRI.•At the sub-region level,developed Asiaoutperformsemerging Asia, due to higher income levels and urban consumersspending more on a per capita basis. However, these developed markets are increasingly becoming more about value thanvolume. The emerging Asia markets will therefore provide strong growth potential for mass market offerings.•While the bottom five markets of Thailand, Laos, Cambodia, Myanmar and Sri Lanka score poorly in the risk categories, we expectstrong growth over the next five years in alcohol consumption, with these states among the 80th and 90th percentile worldwide.Clear Divide Between Developed And Emerging AsiaAsia - Alcoholic Drinks Risk/Reward IndexNote: Scores out of 100; higher score = more attractive market. Source: BMISoju Innovation Puts South Korea In Prime Position, With Vietnam SecondSouth Korea scores 71.6 in our Alcoholic Drinks RRI for the latest Q318 period, placing it in first place in the Asia region and secondglobally. South Korea scores particularly well in the per capita consumption of alcohol, in volume terms, as well as the size of thetotal alcohol market. This high per capita consumption is predicated on the popularity of soju in the country, a distilled rice beveragesimilar to Japanese sake. Soju is actually the best-selling liquor in the world, ahead of more recognised products such as vodka andwhiskey. South Korea's rise to the top of our Asia Alcoholic Drinks RRI reflects a view we have held since October 2016, whichargued that innovation in the soju space through fruit and other flavours would lead to greater consumption in South Korea andacross the world, especially due it its attractiveness within the youth demographic (see'Fruit-Flavoured Soju Will Broaden GlobalAppeal', October 6 2016). Although South Korea is the second most attractive market in the world on our index, it must behighlighted that opportunities for new products are limited, given that soju holds such a dominant position in the market.
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- Summer '18
- Sagar Arora
- ........., Alcoholic beverage, Food processing