Alcoholic drinks in 2024: The big picture
Total volume sales of alcoholic drinks in Sri Lanka saw double-digit growth in 2024, while total current value sales increased dynamically.
2024 key trends
With consistent demand for both local and foreign brands, beer continued to be the top category in alcoholic drinks. Beer recorded double-digit total volume and, especially fast, total current value sales growth in 2024. Despite rising levies, beer made gains because of its accessibility and broad cultural acceptance. Craft beer is becoming more and more popular, and imported premium lager is also gaining popularity.
Competitive landscape
Lion Brewery (Ceylon) Plc, which overwhelmingly dominate total volume share in beer, and is active in RTDs, remained by far the top player in alcoholic drinks. While it gained total volume share in beer in 2024, faster growth in spirits and wine saw its overall share drop, compared with 2023. The company's portfolio, which includes well-known brands like Ceylon Beer and Carlsberg, is widely and easily accessible in both urban and rural locations. Nonetheless, pressure from new competitors offering premium and craft beer alternatives, and other types of alcoholic drinks, exerted some pressure on the leading player at the end of the review period.
Retail developments
Despite a small drop in off-trade volume share in 2024, small local grocers continued to lead the distribution of alcoholic drinks, especially due to their strength in beer and wine. Supermarkets, food/drink/tobacco specialists and hypermarkets were also popular formats. Small local grocers were the principal sellers of alcoholic drinks for consumers, especially in rural areas, where access to modern retail channels is limited. However, these traditional grocery retailers came under pressure from rival formats, inflationary pressure and stricter laws.
On-trade vs off-trade split
The on-trade channel, which includes lodging facilities, dining establishments and bars, has gradually recovered from the slump in demand caused by the restrictions on consumer movement and businesses in the wake of COVID-19. The on-trade demand for alcoholic drinks has increased amid a return to and subsequent rise in socialising and tourism in the post-pandemic period. Thus, volume sales continued to grow much faster in the on-trade channel in 2024, This trend is set to continue over the forecast period, although retail is projected to remain the dominant channel for alcoholic drinks.
What next for alcoholic drinks?
Total volume sales of alcoholic drinks are set to see strong double-digit growth in the shorter term, before slowing, but remaining fast, over the mid-to-late-forecast period. There is anticipated to be growing interest in premium options, while a rising trend towards lower-alcohol content options is also expected to fuel total volume and value sales. In addition to investigating newer distribution channels, including e-commerce and modern grocery retailers, companies are expected to concentrate on innovation, particularly with regard to non/low alcohol and craft products. The regulatory environment is predicted to be mostly unchanged, albeit continuous debates on taxes and limitations on alcohol advertising.
Delivery:
Files are delivered directly into your account soon after payment is received and any tax certification is verified (where applicable).
This report comes in PDF with additional info in Excel included.
Overview:
Understand the latest market trends and future growth opportunities for the Alcoholic Drinks industry in Sri Lanka with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
Data and analysis in this report provides further detailed coverage dedicated to the following key categories, where applicable:
- Beer
- Wine
- Spirits
- Cider and Perry
- RTDs
If you're in the Alcoholic Drinks industry in Sri Lanka, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty
The Alcoholic Drinks in Sri Lanka report includes:
- Analysis of key supply-side and demand trends
- Detailed segmentation of international and local products
- Historic volume and value sizes, company and brand market shares
- Five year forecasts of market trends and market growth
- Robust and transparent research methodology, conducted in-country
This report answers:
- What is the market size of Alcoholic Drinks in Sri Lanka?
- Where is consumer demand for Alcoholic Drinks focussed?
- Which is being consumed more; beer, wine or spirits?
- Where is demand growing? Stagnating?
- How is the operating environment for alcoholic drinks changing?
- Which are the leading brands in Sri Lanka?
- How are products distributed in Sri Lanka?
- What are the key trends in new product development?
- Do consumers want value for money or added value?
- How will macroeconomic context and shifting cultural values shape future growth?
- How will COVID-19 and recession impact the alcoholic drinks industry?
- Where is future growth expected to be most dynamic?
Alcoholic Drinks in Sri Lanka
Alcoholic drinks in 2024: The big picture
2024 key trends
Competitive landscape
Retail developments
On-trade vs off-trade split
What next for alcoholic drinks?
Legislation
Legal purchasing age and legal drinking age
Drink driving
Advertising
Smoking ban
Opening hours
On-trade establishments
Taxation and Duty Levies
Operating Environment
Contraband/parallel trade
Duty free
Cross-border/private imports
Key New Product Launches
Outlook
DISCLAIMER
Key Data Findings
2024 Developments
Beer benefits from economic concerns, but premiumisation is also visible
Lion Brewery dominates but shoots of competition appear
Foodservice demand continues to rebound
Prospects and Opportunities
The offer of beer is expected to develop along higher-quality lines
Health, sustainable and ethical considerations to gain weight in consumer purchasing decisions
Strong company activity is expected to increase consumer engagement
Category Data
Key Data Findings
2024 Developments
Sparkling wine benefits from the search for special occasion beverages
Players invest in expanding access and affordability for consumers
Wider distribution as the government issues more retail licenses
Prospects and Opportunities
Robust key trends to continue to shape wine in Sri Lanka
Flavoured and lower-alcohol wines to gain popularity
Packaging developments and digital platforms to add dynamism to wine
Category Data
Key Data Findings
2024 Developments
Affordability favours arrack
Smaller players make gains through affordability positioning
Shift to at-home consumption favours retail but the on-trade channel remains important
Prospects and Opportunities
Strong but slowing total volume growth as spirits stabilises
Growing popularity of locally made foreign liquors in a price-sensitive market
Tourism may offer some respite to premium spirits
Category Data
2024 Developments
Cider/perry retains potential as a lower-strength, refreshing option
International brands are present with no domestic production
Limited but growing distribution
Prospects and Opportunities
Cider/perry to benefit from a demand for flavoursome and non/low alcoholic drinks
Players to push for wider distribution although high prices remain an obstacle
Cider/perry to see a level of premiumisation
Category Data
2024 Developments
Low awareness and availability continue to limit RTDs’ promise
Some company activity in a shallow category
Limited retail and foodservice distribution hampers category development
Prospects and Opportunities
RTDs could develop along non alcoholic lines in an increasingly health-conscious climate
Distinctive flavours and ingredients would add dynamism to the offer
Packaging may play a role in piquing interest in RTDs
Category Data
The following categories and subcategories are included:
Alcoholic Drinks
-
-
- Ale
- Sorghum
- Weissbier/Weizen/Wheat Beer
-
- Flavoured/Mixed Lager
-
-
- Domestic Premium Lager
- Imported Premium Lager
-
- Domestic Mid-Priced Lager
- Imported Mid-Priced Lager
-
- Domestic Economy Lager
- Imported Economy Lager
-
-
-
- Domestic Premium Lager
- Domestic Mid-Priced Lager
- Domestic Economy Lager
-
- Imported Premium Lager
- Imported Mid-Priced Lager
- Imported Economy Lager
-
-
- Low Alcohol Beer
- Non Alcoholic Beer
- Stout
-
-
- Regular Cider/Perry
- Non Alcoholic Cider/Perry
-
- Malt-based RTDs
- Spirit-based RTDs
- Wine-based RTDs
- Other RTDs
- Non Alcoholic RTDs
-
-
- Brandy
- Cognac
-
- Bitters
- Cream-based Liqueurs
- Other Liqueurs
- Non Alcoholic Spirits
-
-
- Prestige Dark Rum
- Ultra Premium Dark Rum
- Super Premium Dark Rum
- Premium Dark Rum
- Standard Dark Rum
- Economy Dark Rum
-
- Prestige White Rum
- Ultra Premium White Rum
- Super Premium White Rum
- Premium White Rum
- Standard White Rum
- Economy White Rum
-
- Tequila (and Mezcal)
-
- Bourbon/Other US Whiskey
- Canadian Whisky
- Irish Whiskey
- Japanese Whisky
-
-
- Blended Malt Scotch Whisky
-
- Prestige Other Blended Scotch Whisky
- Ultra Premium Other Blended Scotch Whisky
- Super Premium Other Blended Scotch Whisky
- Premium Other Blended Scotch Whisky
- Standard Other Blended Scotch Whisky
- Economy Other Blended Scotch Whisky
- Single Grain Scotch Whisky
- Single Malt Scotch Whisky
-
- Other Whiskies
-
-
-
- Prestige English Gin
- Ultra Premium English Gin
- Super Premium English Gin
- Premium English Gin
- Standard English Gin
- Economy English Gin
- Dutch Gin
-
-
- Prestige Vodka
- Ultra Premium Vodka
- Super Premium Vodka
- Premium Vodka
- Standard Vodka
- Economy Vodka
-
-
- Absinthe
- Ad-Mix Brandy
- Ad-Mix Gin
- Ad-Mix Rum
- Ad-Mix Vodka
- Ad-Mix Whisky
- Aguardente/Aguardiente
- Aguardiente De Caña
- Akvavit/Aquavit
- Aniseed-Flavoured Spirits
- Borovicka
- Boukha
- Brandy Type Distilled Spirits
- Cachaça
- Calvados
- Cane
- Chacha
- Charanda
- Chinese Herbal Spirits
- Chinese Spirits
- Cut Brandy
- Destilados De Agave
- Distilled Fruit Spirits
- Domestic Brandy
- Domestic Rum
- Doppelkorn
- Economy Chinese Spirits
- Flavoured Spirits
- Flavoured Vodka-based Drinks
- Fynbos gin/Local Gin
- Gin-flavoured spirits
- Goldbrand/Goldkrone
- Grappa
- Grappamiel
- Guaro
- Kirsch
- Komovica
- Korn
- Lambanog
- Limoncello
- Local White Spirits
- Lower Mid-Range Chinese Spirits
- Lozovaca
- Maesilju
- Mahia Rabi Amrane
- Mead
- Mixed Spirits
- Nalivka/Nalewka
- Nastoyka
- National Specialities
- Obstbrände
- Ouzo
- Pacharán
- Palinca/Pálinka
- Pear and Apple Distillates
- Pisco
- Premium Chinese Spirits
- Prune
- Punsch
- Rachiu/Rakija
- Rum-Flavoured Spirits
- Samane
- Sambuca
- Samsu
- Schnapps
- Shochu/Soju
- Singani
- Sljivovica/Slivovice
- Steinhäeger
- Strong African Spirits
- Super Premium Chinese Spirits
- Sura Khao
- Tequila Flavoured Spirits
- Travarica
- Tsipouro
- Upper Mid-Range Chinese Spirits
- Vieux
- Viina
- Vodka Type Distilled Spirits
- Other Distilled Beverages
-
-
-
- Port
- Sherry
- Vermouth
- Other Fortified Wine
-
- Apple Wine
- Bokbunjaju
- Cheongju
- Chinese Wine
- Economy Rice Wine
- Fortified Fruit Wine
- Fruit and Berry Wine
- Fruit and Herbal Wine
- Fruit and Honey based Wine
- Fruit Wine
- Lower Mid-Range Rice Wine
- Non-Grape Dessert Wine
- Premium Rice Wine
- Sake
- Takju
- Upper Mid-Range Rice Wine
- Yakju
- Yellow Wine
- Other Non-Grape Wine
-
- Champagne
- Other Sparkling Wine
-
- Still Red Wine
- Still Rosé Wine
- Still White Wine
- Non Alcoholic Wine
-
Alcoholic Drinks
Alcoholic drinks is the aggregation of beer, wine, spirits, cider/perry and RTDs.
See all of our definitionsWhy buy this report?
- Gain competitive intelligence about market leaders.
- Track key industry trends, opportunities and threats.
- Inform your marketing, brand, strategy and market development, sales and supply functions.
This report originates from Passport, our Alcoholic Drinks research and analysis database.
NEW REPORT GUARANTEE
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extraction Free!