Alcoholic Beverages Market

Global Alcoholic Beverages Market:

The global alcoholic beverages market size reached USD 1,579.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 1,963.1 Billion by 2032, exhibiting a growth rate (CAGR) of 2.4% during 2024-2032. The changing consumer preferences for premium and craft beverages, increasing disposable incomes, stringent government regulations, significant growth in the e-commerce industry, the rising demand for low-alcohol alternatives, emerging social and cultural influences, etc., are major factors propelling the market growth. At present, Europe holds the largest market share, driven by shifting consumer preferences towards premium and craft alcoholic products.

Alcoholic Beverages Market Analysis:

• Major Market Drivers: Changing consumer preferences towards premium and craft alcoholic products along with the increasing disposable income of consumers, particularly in emerging economies, are propelling the market growth. Moreover, stringent government regulations and policies regarding alcohol production and distribution are stimulating the industry’s growth.
• Key Market Trends: The growing trend of e-commerce and online retailing coupled with the escalating health and wellness concerns have driven the demand for low-alcoholic beverages, further fueling the market growth. Moreover, continuous innovation in product offerings, packaging, and marketing strategies by manufacturers and distributors helps sustain consumer interest and drive growth.
• Competitive Landscape: Some of the prominent companies in the market include Anheuser-Busch InBev SA/NV, MillerCoors (Molson Coors Brewing Company), Heineken Holdings N.V., Carlsberg Breweries A/S, Diageo plc, Bacardi & Company Limited, Olvi Oyj, Tsingtao Brewery Company Limited, Beijing Yanjing Brewery Co. Ltd., and Kirin Holdings Company Limited, among many others.
• Geographical Trends: According to the alcoholic beverages market insights, Europe currently dominates the overall market. The region is a major tourist destination, attracting millions of visitors each year. The hospitality industry, including bars, restaurants, and hotels, plays a crucial role in driving the alcoholic beverages market demand.
• Challenges and Opportunities: The rising health and wellness concerns, regulatory restrictions across various regions and high competition among key players are some of the challenges that the market is facing. However, the increasing popularity of health-conscious lifestyles presents the alcoholic beverages market’s recent opportunities for manufacturers to develop and market low-alcohol or alcohol-free alternatives, as well as beverages with functional benefits such as probiotics or antioxidants.
   

Alcoholic Beverages Market Trends:

Changing Consumers Preferences

The global alcoholic beverages market has witnessed a significant shift in consumer preferences towards premium and craft products. Consumers are increasingly seeking unique and high-quality alcoholic beverages, driven by a desire for novel taste experiences and authenticity. This trend has led to the rise of microbreweries, artisanal distilleries, and boutique wineries, catering to a discerning consumer base. For instance, in May 2024, Goose Island Beer Co. opened its long-awaited brewpub at the Salt Shed entertainment complex, right across the river from its namesake island. The new brewpub would include both indoor and outdoor seating, a revamped menu, and an ever-changing beer list. Moreover, consumers are more open to trying new and innovative alcoholic beverages, leading to a rise in experimentation with flavors, ingredients, and brewing/distillation techniques. For instance, in December 2023, the Coca-Cola Company launched a line of ready-to-serve "flavored wine cocktails" under its CSD and Minute Maid juice brands. Minute Maid Spiked would be available in three flavors: piña colada, strawberry daiquiri, and lime margarita. Similarly, in December 2023, Doritos collaborated with beverage manufacturer Empirical to create nacho cheese-flavored booze. The beverage is prepared from malted barley and Belgian saison yeast, which is recognized for its peppery, spicy flavor. The essence of actual nacho-flavored Doritos was preserved through vacuum distillation and gives notes of corn tostada, umami, and acidity. These factors are contributing to the alcoholic beverages market share.

Increasing Disposable Incomes

The growth of the global alcoholic beverages market is closely linked to the rising disposable income of consumers, particularly in emerging economies. As individuals and households experience greater economic prosperity, they tend to allocate a portion of their income to discretionary spending, including indulging in alcoholic beverages. For instance, global disposable incomes and household expenditures were predicted to increase by 2.6% in 2022. Also, in 2021, EU households spent more than €1.035 Billion (equal to 7.1% of total EU GDP) on 'Food and non-alcoholic drinks' accounting for nearly 14.3% of total household expenditure. Besides this, with higher disposable incomes, consumers may be more willing to pay for the convenience of purchasing alcoholic beverages online or through delivery services. E-commerce platforms offer a wide selection of products, including premium and specialty items, catering to the preferences of affluent consumers. For instance, in October 2023, SNDL Inc. launched a new e-commerce platform for Wine and Beyond, its destination liquor retail brand. The platform intended to increase accessibility and reach for the banner's extensive product line, which includes rare spirits, local and international breweries, and unique wines. These factors are further positively influencing the alcoholic beverages market forecast.

Rapid Product Premiumization

As disposable incomes rise globally, consumers are willing to spend more on products that are perceived as higher quality, unique, or exclusive. Premium alcoholic beverages fulfill these aspirations by offering superior taste, craftsmanship, and brand prestige. For instance, the Distilled Spirits Council of the United States reported that in 2021, 21.7 Million 9-liter cases of premium whiskey and 21.1 Million 9-liter cases of premium vodka were consumed. Furthermore, super-premium whiskey and vodka experienced year-on-year growth rates of 14.1% and 13.9%, respectively. Besides this, exotic flavors appeal to adventurous consumers who are eager to explore new taste sensations and culinary experiences. By offering exotic flavors, alcoholic beverage companies can tap into this adventurous spirit and capture the attention of consumers seeking premium drinking experiences. For instance, in March 2022, Whitley Neill, a premium gin brand in the United Kingdom, introduced a new gin variety called Oriental Spiced Gin. This gin contains a variety of botanicals and spices, including coriander, ginger, pepper, cumin, saffron, star anise, and grains of paradise. Similarly, in April 2024, D'YAVOL, a global luxury collective, launched D'YAVOL VORTEX, a premium blended Scotch whisky. VORTEX has a broad and complex palate that strikes the ideal balance between rich malt flavors, sherried sweetness, and faint peat. Crafted by combining carefully chosen single malt and single grain whiskies from Scotland. These factors are bolstering the alcoholic beverages market revenue.

Global Alcoholic Beverages Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global and regional levels from 2024-2032. Our report has categorized the market based on category, alcoholic content, flavor, packaging type, and distribution channel.

Breakup by Category:

• Beer
• Wine
  • Still Light Wine
  • Sparkling Wine
• Spirits
  • Baijiu
  • Vodka
  • Whiskey
  • Rum
  • Liqueurs
  • Gin
  • Tequila
  • Others
     

Beer dominates the market

A detailed breakup and analysis of the market based on the category has also been provided in the report. This includes beer, wine (still light wine and sparkling wine), and spirits (baijiu, vodka, whiskey, rum, liqueurs, gin, tequila, and others). According to the report, beer represented the largest segment.

According to the alcoholic beverage market outlook, the increasing demand for beer owing to several key factors, including changing consumer preferences and a rising demand for diverse and unique flavor profiles. Besides this, the emerging inclination towards artisanal and small-batch beers, seeking authenticity and quality over mass-produced options, is propelling the market growth. Additionally, the surging popularity of locally brewed and specialty beers is providing a boost to the market growth. Moreover, the globalization of beer brands has expanded consumer choices, with international beers becoming more accessible, thereby broadening the market scope. For instance, in December 2023, Medusa Beverages Pvt Ltd., an Indian beer business, unveiled its latest variation, Medusa Air. The new product is a compelling blend of imported two-row malted barley and carefully chosen hops, yielding a delectable brew with a 4.5% alcohol content.

Breakup by Alcoholic Content:

• High
• Medium
• Low
   

The report has provided a detailed breakup and analysis of the market based on the alcoholic content. This includes high, medium, and low.

According to the alcoholic beverages market overview, the high alcoholic content segment is driven by consumer preferences for strong spirits and liquors, often associated with premium quality and sophisticated drinking experiences. These beverages are favored for special occasions and luxury consumption, with factors like craftsmanship, brand reputation, and exclusivity playing a significant role in their popularity. Moreover, the medium alcoholic content segment appeals to a broad range of consumers, offering a balanced choice between high-proof liquors and lighter options like wines and craft beers. Factors driving this segment include versatility in pairing with food, affordability, and suitability for various social settings. The low alcoholic content segment is primarily driven by health-conscious consumers seeking alternatives to traditional alcoholic beverages. Factors such as lower calorie counts, reduced alcohol content, and innovative flavors contribute to the growth of this segment, aligning with shifting consumer preferences towards wellness and moderation.

Breakup by Flavor:

• Unflavored
• Flavored
   

A detailed breakup and analysis of the market based on the flavor has also been provided in the report. This includes unflavored and flavored.

The unflavored segment in the alcoholic beverages market is primarily driven by a desire for purity and traditional taste experiences. Consumers seeking the authentic essence of the base spirit, whether it's whiskey, vodka, or others, are drawn to unflavored options. These products often appeal to connoisseurs who appreciate the subtleties of the original spirit. Additionally, unflavored alcoholic beverages are versatile and serve as a base for cocktails, making them a staple in the mixology world. Their enduring popularity hinges on their timeless appeal and mixability. The flavored segment is driven by a growing demand for innovation and diverse taste profiles. Consumers are increasingly seeking unique and exciting flavor combinations that go beyond traditional options. Flavored alcoholic beverages offer a wide range of tastes, from fruity and sweet to spicy and exotic, attracting a broader consumer base, including those who may not typically consume alcohol. These products cater to changing consumer palates, aligning with the trend towards experimentation and the discovery of new sensory experiences, thus driving growth in this segment.

Breakup by Packaging Type:

• Glass Bottles
• Tins
• Plastic Bottles
• Others
   

A detailed breakup and analysis of the market based on the packaging type has also been provided in the report. This includes glass bottles, tins, plastic bottles, and others.

The glass bottles segment is driven by its premium image, which appeals to consumers seeking quality and authenticity. Glass is also impermeable and preserves taste, maintaining the integrity of the beverage. Moreover, the widespread adoption of glass bottles due to growing environmental concerns is acting as a growth-inducing factor contributing to sustainability. Tins are widely used for on-the-go consumption, owing to their portability and durability. The lightweight nature of tins reduces transportation costs, making them cost-effective for manufacturers, which is favoring the market growth. Plastic bottles offer convenience due to their lightweight and shatter-resistant nature, making them suitable for outdoor and event settings. They are often chosen for lower-priced or ready-to-drink (RTD) beverages. Advances in plastic recycling technologies address environmental concerns, supporting this segment. The others segment includes alternative packaging types like cartons and pouches. Factors driving this segment involve innovation and differentiation.

Breakup by Distribution Channel:

• Supermarkets and Hypermarkets
• On-Trade
• Specialist Retailers
• Online
• Convenience Stores
• Others
   

Supermarkets and hypermarkets dominate the market

A detailed breakup and analysis of the market based on the distribution channel has also been provided in the report. This includes supermarkets and hypermarkets, on-trade, specialist retailers, online, convenience stores, and others. According to the alcoholic beverages market report, supermarkets and hypermarkets represented the largest segment.

The growth of the supermarkets and hypermarkets segment in the alcoholic beverages market is underpinned by the convenience offered by the segment. Retail formats offer consumers a one-stop shopping experience, making it convenient for them to purchase alcoholic beverages alongside other household items. In line with this, supermarkets and hypermarkets often provide a wide variety of alcoholic beverage choices, including both well-known brands and niche products, catering to diverse consumer preferences. This extensive selection encourages customers to explore different options. Moreover, these retail formats often leverage their size and purchasing power to negotiate favorable deals with suppliers, which can lead to competitive pricing for alcoholic beverages, attracting price-sensitive consumers. Additionally, the ability to run promotions and discounts in these stores can further stimulate sales. For instance, in May 2024, Ontario announced to expand its alcohol sales in grocery stores and convenience stores.

Breakup by Region:

• North America
• Europe
• Asia Pacific
• Middle East and Africa
• Latin America
   

Europe exhibits a clear dominance, accounting for the largest alcoholic beverages market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America, Europe, Asia Pacific, Middle East and Africa, and Latin America. According to the report, Europe represented the largest segment.

According to the alcoholic beverages market statistics, the growth of the alcoholic beverages market in Europe is underpinned by the shifting consumer preferences towards premium and craft alcoholic products. European consumers are increasingly seeking unique and high-quality beverages, leading to the proliferation of local breweries, distilleries, and wineries catering to these preferences. Moreover, the region's economic stability and rising disposable incomes have boosted spending on alcoholic beverages, particularly premium and imported brands. Furthermore, stringent but well-defined government regulations regarding alcohol production, distribution, and labeling have fostered consumer trust and product quality. Additionally, Europe's rich cultural heritage and diverse drinking traditions contribute to a vibrant and expanding market, with consumers eager to explore a wide range of traditional and innovative alcoholic beverages. The European alcoholic beverages market is also influenced by sustainability concerns, with an increasing demand for eco-friendly and locally sourced options. In line with this, technological advancements in production processes and distribution channels have enhanced the efficiency of the industry, further driving growth in the European alcoholic beverages market. For instance, in February 2024, the Coca-Cola Company and Pernod Ricard collaborated to create a new ready-to-drink cocktail: Absolut Vodka and Sprite in Europe. These factors are further positively influencing the alcoholic beverages market’s recent price.

Competitive Landscape:

Several major companies have expanded their portfolios to include low-alcohol and non-alcoholic alternatives. Moreover, many large beer companies have been acquiring craft breweries and investing in smaller, independent breweries to tap into the growing craft beer segment. These acquisitions allow them to offer a wider range of unique and artisanal beer options. Furthermore, key players in the alcoholic beverage industry have made significant strides in sustainability by focusing on reducing carbon emissions, water usage, and waste in their production processes, which also includes initiatives like using renewable energy sources and reducing packaging waste. Besides this, manufacturers have embraced technology by using augmented reality (AR) and digital marketing to engage consumers through interactive experiences and promotions, which is providing an impetus to the market growth.

The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Anheuser-Busch InBev SA/NV
• MillerCoors (Molson Coors Brewing Company)
• Heineken Holdings N.V.
• Carlsberg Breweries A/S
• Diageo plc
• Bacardi & Company Limited
• Olvi Oyj
• Tsingtao Brewery Company Limited
• Beijing Yanjing Brewery Co. Ltd.
• Kirin Holdings Company, Limited
   

(Please note that this is only a partial list of the key players, and the complete list is provided in the report.)

Alcoholic Beverages Market Recent Developments

• June 2024: Hulk Hogan collaborated with Real American Beer to launch in America. Real American Beer would be offered in 17 states through various distribution channels, working with merchants, such as ABC Fine Wine & Spirits, Albertsons, and much more.
• June 2024: Treasure Wine Estates' 19 Crimes brand collaborated with American rapper Snoop Dogg to produce a ready-to-drink cocktail line in the United States. The new collection is inspired by Snoop Dogg's relaxed Californian lifestyle.
• May 2024: Goose Island Beer Co. opened its brewpub at the Salt Shed entertainment complex, right across the river from its namesake island for beers.

Alcoholic Beverages Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the alcoholic beverages market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global alcoholic beverages market.
• The study maps the leading, as well as the fastest-growing, regional markets.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the alcoholic beverages industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.