Enjoy complimentary customisation on priority with our Enterprise License!
The alcoholic beverages market size is estimated to grow at a CAGR of 3.5% between 2022 and 2027 and the size of the market is forecast to increase by USD 440.18 billion.
This report extensively covers market segmentation by product (beer, spirits, and wine), distribution channel (off-trade and on-trade), and geography (APAC, North America, Europe, Middle East, and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges.
The growth of the alcoholic beverages 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 spirits, craft liquor, craft cocktails, and craft cider segments are also growing. Young female consumers prefer craft ciders. The craft spirits segment includes handcrafted and ultra-premium drinks made with traditional techniques. Demand for craft spirits is increasing due to a desire for new flavors and varieties, particularly among Gen-X and Millennial consumers. These drinks are often made with fresh fruits and vegetables and a blend of other ingredients, contributing to the growth of the alcoholic drinks market.
To get additional information about the market, Request for Free Sample
Our researchers analyzed the data with 2022 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.
Trend
The trend of the alcoholic drink market is being influenced by the increasing consumption of these drinks, particularly in developing economies like India, China, Indonesia, and Singapore. There is a rising demand for premium alcoholic drink , 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 growth of the alcoholic beverages market.
Innovations and new product launches in alcoholic beverages are also fueling market growth. 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 alcoholic beverages market in the forecast period.
Challenge
The prominence of counterfeit products may impede the alcoholic beverages market growth. The alcoholic beverages 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 labelled, 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 growth of the alcoholic beverages market during the forecast period.
Customer Landscape
The report includes the adoption lifecycle of the alcoholic drinks 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 growth strategies.
Global Alcoholic Beverages Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the alcoholic drinks market.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market segmentation by distribution includes Off-trade and On-trade. Off-trade refers to the sale of alcohol for consumption away from the premises, including supermarkets, off-licenses, shops, and online stores. Around 80% of alcohol sales come from off-premise retail establishments. Despite an increase in off-premise sales and a decrease in on-premise sales during the pandemic, overall annual alcohol revenue declined because off-premise establishments were unable to compensate for the revenue loss from on-premise sales. In the last three years, off-trade alcoholic beverage sales have been on the rise, and the pandemic has only accelerated this trend. This growth is driven by increased alcohol consumption, changes in customer buying behaviour, and the expansion of the global alcoholic drinks market.
On-trade consumption takes place at various offline locations such as bars, restaurants, hotels, and nightclubs. Although on-premise sales channels struggled to maintain growth during the pandemic, the industry is now recovering. Yearly on-premise sales have been steadily increasing since the pandemic, and there is a positive outlook for both major and small distributors and producers. On-premise establishments are meeting rising consumer demand by expanding the selection of alcoholic drink on their menus.Furthermore, as innovation has increased, many on-trade venues have modified their recipes to include additional options, which has increased alcoholic beverage consumption and is likely to continue to do so in the future.
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.
To know about the market segments of Alcoholic Beverage Market Request for Free Sample
The beer segment showed a gradual increase in market share of USD 891.11 billion in 2017 and continued to grow by 2021. 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 alcoholic drinks market share and their segments along with the reasons for growth from 2017 to 2027.
The growth of this segment is primarily attributed to the increasing adoption of alcoholic drink by residential consumers, which is driven by an increase in the global demand for alcoholic drink.
For further insights about regional markets,Request PDF Sample now!
Europe is projected to contribute 32% of the market's growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the alcoholic drinks market during the forecast period.
The alcoholic beverages 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.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. In 2020, the COVID-19 pandemic led to a decline in demand for alcoholic beverages in Europe. The pandemic affected the workforce, raw material supply, intermediate products, and trade and logistics, leading to demand-supply volatility and uncertain consumer demand. as several production facilities were closed to curb the spread of the disease. However, in 2021, with the introduction of COVID-19 vaccines and large-scale vaccination drives carried out by governments of various countries, business and industrial activities related to the alcoholic beverages market resumed. Therefore, the alcoholic drinks market in focus is expected to grow during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
|
Alcoholic Beverages Market Scope |
|
|
Report Coverage |
Details |
|
Page number |
162 |
|
Base year |
2022 |
|
Historic period |
2017-2021 |
|
Forecast period |
2023-2027 |
|
Growth momentum & CAGR |
Accelerate at a CAGR of 3.5% |
|
Market growth 2023-2027 |
USD 440.18 billion |
|
Market structure |
USD Fragmented |
|
YoY growth 2022-2023(%) |
2.5 |
|
Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
|
Performing market contribution |
Europe at 32% |
|
Key countries |
US, Canada, China, France, and Germany |
|
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
|
Key companies profiled |
Anheuser Busch InBev SA, Asahi Group Holdings Ltd., Bells Brewery Inc., Carlsberg AS, Constellation Brands Inc., D.G. Yuengling and Son Inc., Davide Campari Milano NV, Deschutes Brewery, 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 Beverage and Food 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 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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
Certified ISO 9001 : 2015
We are ISO 9001:2015 recognized that ensures quality services and product delivery to our clients.
We are GDPR and CCPA compliant! Your transaction & personal information is protected from unauthorized use.
Get lifetime access to our
Technavio Insights
Get the report (PDF) sent to your email within minutes.
