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The alcoholic beverages market size is forecast to increase by USD 261.6 billion at a CAGR of 2.09% between 2023 and 2028. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. The market is being driven by the increasing popularity of craft drinks. Craft beers are becoming more popular and many varieties are available. Established beer companies may launch their own line of craft beer or acquire existing brands to expand their marketing techniques and distribution networks.
The craft beverage industry continues to thrive, with segments such as craft spirits, craft liquor, craft cocktails, and craft ciders experiencing significant growth. Young female consumers exhibit a particular affinity for craft ciders. The craft spirits segment encompasses handcrafted and ultra-premium drinks produced using traditional techniques. The surge in demand for craft spirits can be attributed to the quest for novel flavors and varieties, a trend predominantly driven by Gen-X and Millennial consumers. These beverages are often crafted from fresh fruits, vegetables, and an intricate blend of other ingredients, expanding the horizons of the alcoholic drinks market. Champagne, the iconic sparkling wine, also holds a distinguished position in this realm. Produced using traditional methods, Champagne embodies the essence of craftsmanship and elegance, making it a popular choice for special occasions and celebrations.
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The market offers a wide array of traditional beers, wines, and other alcoholic drinks, crafted through fermenting grains, fruits, sugars, tubers, plant saps, honey, and even milk, adhering to regulations that include warning labels indicating alcohol content percentage, while also embracing environmental responsibility with options such as organic wines and biodynamic wines packaged in eco-friendly solutions, reflecting local special circumstances and cultural and religious factors shaping the wine culture and beer market worldwide. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
The trend of this market is being influenced by the increasing consumption of alcoholic drinks, particularly in developing economies like India, China, Indonesia, and Singapore. There is a rising demand for premium alcoholic drinks, which is driving the industry forward. To meet this demand, alcoholic beverage producers are enhancing their distribution channels and expanding sales to online and convenience stores. These efforts are significantly contributing to the market.
Innovations and new product launches in alcoholic beverages are also fueling the market. For example, in January 2020, Constellation Brands Inc introduced its Unshackled luxury wine brand across the US through its Prisoner Wine Company brand. These factors are expected to continue supporting the growth of the market in the forecast period.
The prominence of counterfeit products may impede the market. This industry is under constant threat from the flourishing market for counterfeit alcoholic beverages. Such items can affect the health of consumers to a great extent and lead to heavy revenue losses for manufacturers across the world. These products are bottled and labeled, mimicking the original ones. Vodka is one of the most common counterfeit spirits.
In China, there have been several cases of illegal sales of homemade rice wines, which is slowing down the growth of the organized wine market. In addition, there have been incidents where many old, used, and empty wine bottles were being purchased and filled with spurious alcoholic beverages, which were then passed off as branded liquor. Thus, it is important to combat the growth of counterfeit alcoholic beverages, as it can hamper the the market during the forecast period.
The market share growth by the beer segment will be significant during the forecast period. This segment has had the highest sales and revenue over the past few years, and it is expected to continue to dominate the market during the forecast period. However, in terms of volume, the beer segment is expected to register a declining growth rate during the forecast period. The reason for this is that the global beer market has reached its state of maturity in North America and Western Europe. Southeast Asia is becoming a promising market for beer producers, owing to the presence of a young population, high economic growth, and lower levels of alcoholic beverage consumption than developed countries.
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The beer segment showed a gradual increase in market share of USD 892.10 billion in 2018 and continued to grow by 2022. International vendors such as Heineken and Carlsberg Breweries AS (Carlsberg) are continuously expanding their businesses in this region by acquiring various dominant local brands. In addition to this, the increasing preference for premium drinks and the rising demand for newer varieties and flavors of alcoholic beverages among consumers, especially Millennials, have also led to a declining growth rate in the beer market. Stringent government regulations related to imports and distribution also act as barriers to the growth of the global beer market during the forecast period. Furthermore, our report provides a brief analysis of the historical and forecast market share and their segments along with the reasons for growth from 2017 to 2027. Hence, such factors are fuelling the growth of this segment which in turn drives the market during the forecast period.
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Europe is estimated to contribute 28% to the growth of the global market research and growth during the forecast period. Technavio's analysts have provided an extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the forecast period. The market in the region is driven by steady growth in Eastern Europe. Breweries are one of the largest businesses in many European countries and generate huge opportunities for employment. France, Germany, Russia, the UK, Belgium, Romania, and Poland are some of the key alcoholic beverage-consuming countries in Europe. Hence, such factors are driving the market in Europe during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, which forecasts to enhance their presence in the market report.
The market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and trends strategies.
Customer Landscape
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market encompasses a wide array of products derived from various sources like ethanol obtained through fermenting grains, sugar, and other ingredients such as tubers, plant saps, honey, and even milk. With each beverage, consumers are met with varying alcohol content percentages that are often accompanied by warning labels. While traditional ingredients like malted barley and hops are commonly associated with beer production, crushed grapes dominate wine-making. Increasingly, there's a shift towards environmental responsibility with the emergence of organic wines and biodynamic wines, often presented in eco-friendly packaging solutions. Local special circumstances and cultural factors, including wine culture and religious factors, further influence consumer preferences in this dynamic market.
Alcoholic consumption involves the consumption of beverages containing ethanol, a product of the fermentation process facilitated by yeasts and sometimes bacteria. This process converts carbohydrates into ethanol and carbon dioxide. The production of various alcoholic beverages, such as whiskey and liquors, often involves distillation. However, excessive consumption can lead to alcoholism and health issues like heart disease, hypertension, stroke, cirrhosis, alcoholic hepatitis, fatty liver, and various cancers. Moreover, alcohol abuse is associated with increased risks of accidents and cardiovascular diseases. Despite these risks, the market continues to offer diverse products, including ready-to-drink cocktails and premium cocktails, catering to consumer preferences.
Market Scope |
|
Report Coverage |
Details |
Page number |
171 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 2.09% |
Market growth 2024-2028 |
USD 261.6 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
2.03 |
Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
Performing market contribution |
Europe at 28% |
Key countries |
US, China, Germany, Canada, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Bells Brewery Inc., Campari Group, Carlsberg Breweries AS, Constellation Brands Inc., Deschutes Brewery, D.G. Yuengling and Son Inc., Diageo Plc, FIFCO USA, Heineken NV, Kirin Holdings Co. Ltd., Molson Coors Beverage Co., New Belgium Brewing Co. Inc., Pernod Ricard SA, Stone Brewing Co. LLC, Suntory Holdings Ltd., Treasury Wine Estates Ltd., Victory Brewing Co., and Yanghe Distillery Co. Ltd. |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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