The spirits market - Belgium (2023)

1.2 Estimate of the Belgian spirits market

We will estimate the size of the Belgian spirits market by comparing it with the French market, for which market size data is available.

The WHO provides data on per capita consumption of liters of pure alcohol from spirits in Belgium and France in ****. These figures are multiplied by the population over ** years of age in these countries.

Belgium: ********.* liters consumed in **** France: *********.* liters consumed in ****

Eurostat compares price indices for alcohol and tobacco in Belgium and France over the last year. We will assume that the price difference between Belgium and France in **** has remained similar today.

Belgium: ***.*** index base *** in ****

France: ***.*** index base *** in ****

We can now weight alcohol consumption by price indices.

Belgium: ***.*** * ********.* = **********.****

France: ***.*** * *********.* = ***********.****

From FEVS andInsee, we know that the French spirits market in **** was worth *.* billion euros. We can thus obtain the size of the Belgian market:

**********,**** * **********/ ***********,**** = ********

We can therefore estimate the size of the Belgian spirits market at around ***.** million euros in ****.

1.3 The global spirits market

In ****, the global spirits market was estimated at ***.** billion dollars. After a year of recovery in ****, market growth is expected to accelerate to ***.** billion US dollars by ****, with a compound annual growth rate of *%.

World spirits market size World, ****-*****, in billions of US dollars Source: ****

The global market is mainly driven by the development of developing countries and the growth of their populations, but also by market premiumization, digitalization and innovation in line with new consumer expectations, particularly with regard to environmental and health concerns.

Conversely, the main challenges facing the global market are restrictions on alcohol advertising, high taxation, strict rules and regulations in certain regions, and health problems linked to excessive alcohol consumption.

Asia-Pacific dominates the global spirits market, accounting for **% of the market by ****. North America is the second largest region, accounting for **% of the global spirits market.

Vodka is the world's most consumed spirit, followed by whisky, with over **% of revenues in ****.

Leading companies in the global spirits market include Diageo, Pernod-Ricard, Brown-Forman, Constellation Brands, Remy Cointreau, Marnier Lapostolle, Belvedere and Berentzen-Gruppe. [***]

1.4 Foreign trade

Spirits are an important part of Belgium's foreign trade, accounting for *** million euros of exports and imports by ****. This is a crucial element in trade relations with European partners.

Trend in Belgian trade balance for spirits Belgium, ****-****, in millions of euros FPS Economy, SMEs, Self-employed and Energy

The coverage rate is almost balanced and has been trending upwards since ****: +** points.

Evolution of the Belgian spirits trade balance (***) Belgium, ****-****, in millions of euros and as a % FPS Economy, SMEs, Self-employed and Energy

Trend in Belgian spirits trade balance (***) Belgium, ****-****, in millions of euros and as a % of GDP FPS Economy, SMEs, Self-employed and Energy

Clearly, Belgium's foreign trade in spirits is focused on Europe. Non-European partners are mainly exporters. Foreign trade with European partners will be almost * times higher in ****.

Export partners for Belgian spirits Belgium, ****, in millions of euros FPS Economy, SMEs, Self-employed and Energy

. Trade partners for Belgian spirits imports Belgium, ****, in millions of euros FPS Economy, SMEs, Self-employed and Energy

Most Belgian exports go to the Netherlands and Luxembourg, which border Belgium. France is Belgium's main supplier of spirits.

2.1 Overconsumption of alcohol in Belgium

Prevalence of alcohol use disorders and alcohol dependence Belgium, ****, in WHO

Belgium, with an annual consumption of **.* liters of pure alcohol per capita (***), exceeds the European average, and **% of Belgians admit to excessive drinking at least once a month [***]

The **** study of drinking habits in Belgium shows that men and young people aged ** to ** are most affected by risky drinking, with young men tending to consume large quantities of alcohol at every opportunity, putting their health at risk. Hyper-alcoholism and binge drinking are common among **-** year olds, with **% indulging in hyper-alcoholism at least once a month and **.*% practicing binge drinking monthly or weekly . despite this,older adults consume as much alcohol as young people on average, generally due to daily consumption increasing with age. What's more, the average age of onset of alcohol consumption is decreasing, falling below **. Finally, it's important to note that alcohol consumption varies by region and culture. [***]

**% of the Belgian population drank alcohol in excess in ****, i.e. more than ** units of alcohol per week. **% of young Belgian consumers (***) began drinking alcohol before the age of **.it is noted that early consumption can lead to irreversible brain damage and increase the risk of fatal accidents. ...

2.2 Alcohol and spirits consumption

Alcohol consumption by gender Belgium (***), ****, in % of pure alcohol consumed per capita WHO

Men consume significantly more alcohol than women in Belgium.

Spirits consumption trends Belgium (***), ****-****, in liters of pure alcohol consumed per capita WHO

Spirits consumption has tended to decline in recent years, particularly since ****.

Spirits consumption in Belgium and Europe European Union, ****, in liters of pure alcohol consumed per capita WHO

Belgians consume relatively few spirits compared with their European neighbors. The French consume twice as much per capita, and the same is true for the European Union.

Breakdown of alcohol consumption per capita by type of spirit Belgium, ****, in percent (***) WHO

Beer and wine are by far the most consumed alcohols in Belgium. Spirits come in *ᵉ position with **% of alcohol consumption.

2.3 Demand trends: upmarket, no/low and experiences

Belgium's favorite spirits are liqueurs, whiskies and white spirits (***). [***]

whisky and vodka are the main spirits sales categories at Carrefour, accounting for **% and **% of sales respectively, with a stable total of *** references. Molasses rums, with brands such as Diplomatico, Don Papa, Mathusalem, Barcelo, Angostura, Mount Gay, are the most popular in the category. Agricultural rums are gaining in popularity, but mainly in the French-speaking regions of the country, and particularly for aged rums. [***]

The most popular spirits in Belgium at the moment seem to be rum, whisky, gin and vodka. Here are a few key points that indicate their popularity:

Rum : Rum is experiencing strong growth and gaining market share, even challenging whisky's traditional position. Molasses rums, including brands such as Diplomatico, Don Papa, Methuselah, Barcelo, Angostura, and Mount Gay, dominate the category. Whisky : Although whisky remains popular and holds a leading position, it seems that rum is gaining ground and seriously competing with whisky in the market. Single malt whisky is mentioned as still occupying second place in sales. Gin : Gin also remains a popular category, accounting for **-**% of sales depending on the season. However, sales of high-end gin appear to be declining. Vodka : Vodka is also mentioned as ...

3.1 Value chain

The Belgian spirits industry brings together several types of players involved in one or more stages of the value chain. The value chain comprises * main phases:

The first is the extraction of agricultural raw materials, such as wormwood, sugarcane, potatoes, cereals and beet. These raw materials are then processed to obtain the desired alcohol, notably by fermentation and distillation. Packaging refers to thebottling and packaging of spirit drinks. Finally, the finished products are distributed through a variety of channels (***).

Source: ****

3.2 Belgian spirits production

Distillation is a process that produces spirits from liquid mixtures. Here's a summary of the key stages in distillation:

Definition of distillation : Distillation is a process for separating liquid substances with different boiling temperatures. It involves boiling the mixture followed by condensation of the vapor in another vessel.

Distillation tool: The alembic is the central tool in distillation. It heats the liquid, causes it to evaporate, and allows the vapors to condense to obtain the distillate.

Distillation process :

A homogeneous mixture of water and alcohol is heated to over **.*°C, staying below ***°C to prevent the water from boiling. The aroma-saturated alcohol vapors rise in the alembic hood. The vapors pass through a coil into a cooling liquid, causing condensation and the creation of an alcohol-rich liquid, the distillate.

History of distillation: The distillation of spirits in the West has its origins with Arab alchemists and Christian monks. The alchemists invented it for therapeutic purposes, while the monks developed practices linked to Christian worship.

Difference between fermented and distilled alcohol: Fermentation, the first stage, converts sugars into energy. Distillation takes place after fermentation, producing "strong alcohols" such as whisky, rum, cognac, tequila, etc.

Variations of stills:

Pot still alembic: Used for ...

3.3 Distribution

4.1 The main types of spirits

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In terms of Belgian spirits, here's an overview of what's on offer:

4.2 Focus on whisky and gin

Whiskies vary according to :

the ingredients used production processes territorial origins

There is a wide variety of different whiskies, including :

Single malt: produced by a single distillery, this is the flagship product of Scottish distilleries. It is one of the most expensive whiskies. Aberlour and Glenfiddich are major brands in this segment.

Single grain: Whisky made from one or more cereals (***).

Blended: blended refers to a blend of various malt whiskies and grain whiskies; blended malt refers to a blend of various malts; blended grain refers to a blend of various grains. This is an inexpensive whisky, not least because it costs less to produce.

In Scotland, there are * designations according to the Scotch Whisky Association:

Single Malt Scotch Whisky Blended Malt Scotch Whisky Single Grain Scotch Whisky Blended Grain Scotch Whisky Blended Scotch Whisky

Blended Scotch Whisky must be made exclusively from peat-dried malted barley, aged for * years in Scottish casks, and have an alcohol content of over **%.

Single Pot Still: Traditionally Irish, it is made from malted and unmalted barley, distilled in pot stills

Bourbon: mainly produced in Kentucky, it must contain at least **% corn and be aged for at least * years in oak casks. If it's not a ...

4.3 Belgian supply trend: no/low

In Belgium, the emerging no-low trend is gaining in popularity in response to a general decline in alcohol consumption and a growing demand for healthier drinks. this trend is characterized by the emergence of alcohol-free bars where customers can enjoy the convivial atmosphere usually associated with bars, without the presence of alcohol. In ****, alcohol consumption fell by *%, with a corresponding increase in demand for low-alcohol and alcohol-free drinks. This trend began in the USA with establishments such as the Ocean Beach Café in San Francisco, before crossing the Atlantic to Europe, with bars such as Virgin Mary Bar in Dublin and Zeroliq in Berlin. In Belgium, the concept of alcohol-free bars has recently made its appearance with the opening of places like Losmoz in Liège. These establishments offer a diverse range of non-alcoholic beverages, including mocktails, alcohol-free craft beers and alcohol-free wines, replicating the experience of a traditional bar. The benefits of this trend include creating inclusive spaces where everyone can feel comfortable, reducing the social stigma often associated with not drinking alcohol, and promoting healthier consumption choices. Alcohol-free bars meet a growing demand from people seeking alternatives to alcohol consumption, while still wishing to maintain an active social ...

5.1 Alcohol regulations

In Belgium, the sale of alcohol is subject to legal restrictions designed to protect young people from alcohol abuse. The main rules include :

minimum age: It is forbidden to sell, serve or offer alcohol to young people under the age of sixteen. In addition, the sale of spirituous beverages is prohibited to young people under the age of eighteen. Age control: Horeca operators and store personnel are authorized to ask for proof of age, such as an identity card or other valid document. In case of doubt, the vendor is advised to refuse the sale of alcohol. Vending machines: Alcohol vending machines must be equipped with an ID card reader to verify the age of the potential buyer, and it is forbidden to disconnect this system.

Failure to comply with these rules may result in penalties, monitored by the Tobacco and Alcohol Control Department of the Federal Public Health Service. Administrative fines vary from *** to *,*** euros, depending on the seriousness of the offence. In the event of non-payment, the case may be referred to the public prosecutor's office, and legal proceedings may be initiated.

Alcohol advertising is also regulated by a convention signed by various stakeholders, aimed at protecting young people ...

6.1 Segmentation

6.2 Excise duty

Packaging levy in Belgium : *.** €/hl on individual beverage containers. Possible reduction to €*.**/hl with a "reusable container" certificate Storage with Minimum Stock: Minimum stock required on an annual basis : Beer: **** hl Wine: *** hl Intermediate products: ** hl Spirits: ** hl DETT bond (***) : Bond: ***% of the excise duty due on the consignment. DE bond (***): Holding bond: **% of excise duty due on average monthly stock. Shipment bond: ***% of excise duties for * weeks of normal shipment activity (***). Entrepositaire Agréé (***) authorization: Authorization with an excise number starting with BE*...... EA bond: **% of excise duty due on average monthly stock. Registered Consignee (***) authorization: Authorization with an excise number starting with BE*...... No limit on the number of authorized receipts. Temporary Registered Consignee (***) authorization: Authorization with an excise number starting with BE*...... Valid for one shipment and limited to a certain period.

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• Diageo
• La Martiniquaise Bardinet
• Bacardi
• Pernod Ricard Groupe
• Campari France Distribution
• Moët Hennessy (MHCS LVMH)
• Maison du Whisky
• Campari