Alcoholic Beverages Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Alcoholic Beverages Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The alcoholic beverages market is projected to register a CAGR of 3.4% during the forecast period, 2021 - 2026.

With the onset of COVID-19, the alcoholic beverages market was severely impacted, mostly due to the closure of specialty shops, bars, pubs, and restaurants. During the mid-2020, the ease in lockdown measures had led retailers to gain confidence, while a steep increase in prices was observed in some countries mostly due to government regulations and taxes, thus minimally affecting the market studied.

Also, the demand for hard drinks such as whiskey and gin had soared up during the pandemic, while products such as beer witnessed growth in terms of volume. In-house consumption, along with the stocking of brands, has been one of the propelling factors for the market to sustain during the pandemic.

Over the medium term, the market is likely to be driven by the increase in the global young-adult demographic, coupled with high disposable income and consumer demand for premium/super-premium products.

On a global level, beer drives the market for alcoholic beverages, while on the regional level, Asia-Pacific is expected to dominate the global market during the forecast period. In the market studied, growth in online retailing has been observed. For instance, Drizly, an alcohol e-commerce platform, experienced growth in online alcohol delivery revenue.

Key Market TrendsPremiumization is Driving the Alcoholic Beverages Market

Consumers around the world today have more sophisticated palates compared to a decade ago. They are constantly looking to explore unique, high-quality alcoholic beverages. The inclusion of natural ingredients in alcoholic beverages improves their functionality, and such products are gathering a lot of attention from consumers.​

The increase in health awareness among people, promoting the inclusion of functional and natural ingredients, provides greater opportunity for the premium alcohol market. There have been humongous sales coming in from the foodservice industry over the recent past, with considerable sales coming from premium alcoholic beverages, especially premium wine and whiskey. ​

According to the Distilled Spirits Council, American rye in the spirits market recorded an increase of 15.9% to 1.1 million 9-liter cases in 2018 in the United States. This has led to the growth in demand for premium and super-premium whiskey in 9-liter cases.​

The United States Dominates the Alcoholic Beverages Market

There is increasing popularity of low-alcohol beers and ciders, which is attributed to a growing awareness of alcohol unit consumption and the customers' willingness to try new variants in the United States. This shift in trend is witnessed in the demand for low-alcohol drinks by volume in the country, where the sales of off-licenses and supermarkets have soared to a high record.​

Craft beer, craft spirits, and Japanese spirits are the fastest-growing segments owing to the consumer perception of craft spirits as premium quality and the concept of mindful drinking in the country.​

The US wine market is being catered by more than 10,000 wineries across the country, where California held the highest share, i.e., more than 85%, followed by Washington, Oregon, New York, Texas, and Virginia.​ The American consumers are becoming more attracted to wines with descriptors, no taste additives, gluten-free, low carb, vegan-friendly, sulfite-free, low calorie, low alcohol, light, lighter, organic, paleo-friendly, etc. This is attributable to the rising focus on healthy food and beverages that is sweeping across the nation.​

Competitive Landscape

The market studied is highly competitive. Major players account for significant shares in the market. Some of the largest market players in the alcoholic beverages market are Diageo, Anheuser-Busch InBev, Bacardi Limited, and Constellation Brands. ​The alcoholic beverages market is expected to witness significant growth over the forecast period, owing to the development of several marketing strategies that greatly rely on product innovation, product differentiation policies in terms of ingredients added, and packaging and branding of the products via social media to attract the target group of consumers.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

Diageo PLC
Bacardi Limited
Constellation Brands Inc.
Anheuser
Busch InBev
Heineken Holding NV
Molson Coors Brewing Company
Boston Beer Company Inc.
Asahi Group Holdings Ltd ​
Carlsberg Group
Suntory Beverage & Food Limited​

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