Structural Changes in the Consumption of Beer, Wine and Spirits in OECD Countries from 1961 to 2014

Alcohol consumption is usually measured as the simple sum of the per capita consumption of beer, wine and spirits in alcohol equivalents, i.e., assuming the specific beverages to be perfect substitutes. Alternatively, total alcohol consumption can be represented by a vector in the three-dimensional space of beer, wine and spirits, and the concept of angular separation is used to give a structural measurement of the beverage composition. Applying such a methodology, the aim of this paper is to analyse and explain structural changes in alcohol consumption among 21 OECD countries over the period from 1961 to 2014. Overall, the analyses suggest that convergence has taken place in the structural composition of alcohol consumption in the OECD countries. Income, the alcohol consumption level, trade openness and demographic factors are found to be drivers of this development during the last decades.