Global Alcoholic Beverages Market size was estimated at USD 1.71 trillion in 2022 and is projected to reach USD 2.34 trillion by 2030, growing at a CAGR of 4.01% for the forecast period between 2023 to 2030. One of the main drivers of the market's expansion is the increased demand for alcoholic beverages to ease the tension and anxiety brought on by busy lives and stressful job schedules coupled with growing consumption trends among women. Additionally, a positive market outlook is being provided by the rising consumption of alcoholic beverages as a result of the expansion of cafes, pubs, clubs, bars, hotels, and restaurants around the world. Additionally, there is a growing demand among the general public worldwide for premium, low ABV (alcohol by volume) ready-to-drink (RTD) alcoholic beverages. This is accelerating the market's growth, along with the rising trend of socializing and weekend gatherings among people.
In addition, the widespread accessibility of alcoholic beverages through a variety of distribution channels, including hypermarkets, supermarkets, specialty, convenience, and online stores, is providing industry operators with lucrative expansion potential. The market is being positively impacted by the younger generation's rising demand for flavored alcoholic beverages. Apart from this, the market is expanding because of the growing popularity of beer, which helps people keep a healthy digestive tract.
Furthermore, the alcoholic beverages market is anticipated to grow due to the surging demand for artisanal spirits in emerging economies like China and India. Additionally, there is an opportunity for the market to capitalize on the increasing demand for value-added hard seltzer products at competitive prices. However, the industry expansion is hindered by the rising preference for non-alcoholic beverages. To cater to health-conscious consumers, major players are now focusing on introducing cordials and alcoholic beverages with lower alcohol content. In August 2021, Hola Beer with Lime (0.5% ABV), one of the healthiest low-alcohol beers, was introduced to the low and no-alcohol category by Loah Beer Co. Aiming, especially at a 0.5% ABV, the new Hola Beer with Lime is brewed with all the same yeast, hops, and malts as alcoholic beer. It also has one of the lowest calorie and sugar contents of any low-alcohol beer currently available in the UK market.
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Growing Popularity of Premium and Super-Premium Alcoholic Beverages
Global consumers today have more refined tastes and are constantly searching for unique and excellent alcoholic beverages resulting in greater market demand for alcoholic beverages of the highest caliber. In 2021, 21.7 million 9-liter cases of premium whisky and 21.1 million 9-liter cases of premium vodka were consumed, as per the data by the Distilled Spirits Council of the United States. Additionally, Super-premium whisky and vodka both experienced year-over-year growth rates of 14.1% and 13.9%, respectively.
Functional premium alcoholic beverages have been developed as a result of the increase in health consciousness. Alcohol tends to have better functional qualities when various natural and exotic components are included, which attracts a wider range of consumers. For instance, the premium gin brand Whitley Neill in the United Kingdom introduced Oriental Spiced Gin as a new gin variety in March 2022. This gin contains a variety of botanicals and spices, including grains of paradise, coriander, ginger, chilli, cumin, saffron, and chilli. As a result, market demand is anticipated to be driven by the growing popularity of premium and super-premium alcoholic beverages throughout the forecast period.
Changing Lifestyles
People in emerging economies are experimenting with new forms of entertainment like nightclubs and pub hopping due to the growing urban population and increased disposable incomes. Additionally, sales of alcoholic beverages are driven by young individuals with wealthy families, substantial social media influence, and simple access to alcohol. Urban areas have more alcoholic beverage usage because of stressful employment and the idea that alcohol calms the mind, drives the demand for these beverages. Manufacturers of alcoholic beverages are often adding new flavours to their products. Customers are intrigued to test these products, which are appropriate for the alcoholic beverage business, especially millennials. To take benefit from the growing millennial population, in October 2022, three limited-edition unique experimental brews were created by Carlsberg Breweries A/S to mark the company’s 175th anniversary.
Government Regulations/Initiatives
Governments typically require alcoholic beverage producers, distributors, and retailers to obtain licenses and permits to operate legally. These licenses may be specific to different types of alcoholic beverages, such as beer, wine, or spirits. The application process and requirements for obtaining licenses vary, including factors such as age restrictions, background checks, and adherence to specific regulations. Governments set standards for the production, quality, and safety of alcoholic beverages. The labelling requirements often include details such as alcohol content, ingredients, allergen information, health warnings, and origin. Age restrictions are enforced for the purchase and consumption of alcoholic beverages. The legal drinking age varies globally, aiming to protect public health and prevent underage drinking. Alcoholic beverages are subject to taxation and excise duties imposed by governments. The rates and structures of these taxes vary across countries and can significantly impact pricing, profitability, and consumer demand. Governments use taxation as a means to generate revenue and regulate alcohol consumption.
North America Expected to be the Fastest-Growing Market
This region leads the alcoholic beverage sector because a large majority of the population in North America is under the age of 25. Over the course of the forecast period, the market for alcoholic beverages is anticipated to grow due to the increased demand for premium alcoholic beverages. Due to rising disposable income, it is projected that the North American alcohol market will expand significantly. In the upcoming years, developing nations are anticipated to dominate the region's alcoholic beverage market. Due to customer perceptions of craft spirits as premium quality and the national notion of mindful drinking, craft beer and craft spirits are the segments with the strongest growth rates.
Wine consumption in North America has also been steadily increasing. The region has seen a rise in wine appreciation and wine culture, with consumers exploring a wide variety of wines from different regions and grape varieties. This trend has been supported by wine tourism, wine clubs, and a growing interest in wine education. According to the Wine Institute, a total of 822 million gallons of wine were consumed in the United States in 2022.
Trends Driving Growth:
- Premiumization: Consumers are increasingly willing to splurge on high-quality, premium alcoholic beverages, seeking superior taste, craftsmanship, and exclusivity. This trend has fueled the rise of craft breweries, artisanal distilleries, and boutique wineries catering to discerning palates.
- Health and Wellness: While indulgence remains a key driver in the alcoholic beverages market, health-conscious consumers are seeking lighter options such as low-calorie beers, organic wines, and botanical-infused spirits. The demand for healthier alternatives underscores a shift towards moderation and mindful drinking habits.
- Innovation and Experimentation: Innovation is at the heart of the alcoholic beverages market, with manufacturers constantly pushing the boundaries to create novel flavors, ingredients, and packaging formats. From fruit-infused beers to canned cocktails and alcohol-free alternatives, consumers are spoilt for choice in today's dynamic market.
- E-commerce and Direct-to-Consumer Sales: The proliferation of e-commerce platforms and direct-to-consumer sales channels has democratized access to alcoholic beverages, allowing consumers to explore a vast array of products from the comfort of their homes. This shift towards online shopping has presented new opportunities for both established brands and emerging players to reach wider audiences and drive sales.
Impact of COVID-19
People's drinking patterns have substantially changed since the COVID-19 pandemic, shifting from pubs and restaurants to their homes. Alcohol is a common component of people's social lives, which COVID-19 has drastically affected. Overall, a few people did not change their drinking habits, but among those who did, their consumption increased by a larger percentage. According to early figures on government tax receipts, alcohol sales in Germany, the United Kingdom, and the United States rose by 3% to 5% in 2020 compared to 2019. This industry was badly impacted by the sharp decline in alcohol sales in bars and restaurants, while off-premises sales, such as those made in retail and online businesses, saw tremendous growth. For instance, online sales rose up to 234% in the United States.
Global Alcoholic Beverages Market: Report Scope
"Global Alcoholic Beverages Market Assessment, Opportunities and Forecast, 2016-2030F,” is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative & quantitative assessment of the current state of the alcoholic beverages market globally, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, COVID-19 and Russia-Ukraine war impact, opportunities and forecast between 2023 and 2030. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
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