The global alcoholic beverages market size was worth USD 1,729.50 million in 2021 and is expected to increase to USD 2005.69 million by 2028, with a CAGR of 2.50 percent.
Alcoholic Beverages Market
The global alcoholic beverages market size was worth around USD 1,729.50 million in 2021 and is estimated to grow to about USD 2005.69 million by 2028, with a compound annual growth rate (CAGR) of approximately 2.50 percent over the forecast period. The report analyzes the alcoholic beverages market’s drivers, restraints, and challenges and the effect they have on the demand during the projection period. In addition, the report explores emerging opportunities in the alcoholic beverages market.
An alcoholic beverage is a beverage made by combining ethanol with fermented fruits, grains, and sugar. Wines and ciders are made from fermented fruit, whereas beers and spirits are made from fermented barley and rye, respectively. The alcoholic content and flavor of the beverage are influenced by the amount of time it is aged and the container in which it is fermented. Alcoholic beverages are widely consumed as energizing and entertaining beverages. Innovations and advancements in the manufacturing of vodka, flavored wine, beer, and cocktails, combined with changing consumer lifestyles, beverage preferences, and an increase in the number of breweries and wineries worldwide, are assisting the market's growth.
Furthermore, demand for premium and super-premium alcoholic beverages is increasing rapidly in both developed and emerging economies. The growing trend of socializing and mid-week/weekend parties among young and working professionals has also influenced the market positively. With increased urbanization, premium beverages are now associated with class and sophistication, leading consumers to seek out unique and innovative drinking experiences. This has resulted in a growing interest in experimenting with various flavors of flavored alcohols and mixed beverages. Furthermore, factors such as the expansion of the food and beverage industry, the increasing rate of social media and internet penetration, and improved distribution and retail channels are all contributing to market growth.
The alcoholic beverages market was severely impacted by the implementation of COVID-19, owing primarily to the closure of specialty shops, bars, pubs, and restaurants. During the mid-2020 period, the relaxation of lockdown measures led retailers to gain confidence, while a sharp increase in prices was observed in some countries, primarily due to government regulations and taxes, affecting the market studied only minimally. Also, during the pandemic, demand for hard drinks such as whiskey and gin increased, while beer volume increased. In-house consumption, along with brand stocking, has been one of the driving factors in the market's ability to survive the pandemic.
The demand for alcoholic beverages is increasing. The increased demand for premium alcoholic beverages is one of the key drivers of this industry. Manufacturers' efforts to strengthen distribution channels and expand purchase channels, such as online stores and convenience stores, are also significantly contributing to the growth of the Alcoholic Beverages Market. New product introductions and advancements in alcoholic beverages contribute to the industry's growth.
The high cost of premium/super-premium products, as well as the escalation of the nonalcoholic beverages market due to increased health concerns, are expected to limit market growth in the near future.
People's growing health consciousness, which encourages the use of functional and natural ingredients, opens up new opportunities for the premium alcohol market. Huge sales have recently come from the foodservice industry, with significant sales coming from premium alcoholic beverages, particularly premium wine and whiskey.
The outline of healthy breweries and spirits will provide additional potential opportunities for the alcoholic beverages market to grow in the coming years. However, the rise in the alcohol market as a result of increased health concerns may pose additional challenges to the growth of the alcoholic beverages market in the near future.
The global Alcoholic Beverages market is segregated based on Category, Alcoholic Content, Flavour, Packaging Type, and Distribution Channel.
Based on Category, the market is segmented into Beer, Wine, and Spirits. Beer is the most popular alcoholic beverage worldwide, containing between 4 and 7 percent alcohol by volume. Wine is the second-largest segment after beer and contains 6-20% alcohol, while spirits contain 40-80 percent alcohol. Beer sales are also being driven by an increase in demand for craft beer. Distilled Spirits are the most profitable investment sector in the alcoholic beverages industry, owing to a surge in premium/super-premium whiskey consumption and a shift away from beer.
Based on Distribution Channel, the market is segmented into Supermarkets and Hypermarkets, On-Trade, Specialist Retailers, Online, Convenience Stores, and Others. With rapid urbanization in various emerging economies, the number of supermarkets is increasing in almost all major cities. Furthermore, the availability of low-cost products and the availability of wide variety of alcoholic beverages in supermarkets fuel the growth of this segment. Furthermore, the high visibility and appealing assortment of alcoholic beverages, an increase in consumer disposable income, and changes in consumer preferences toward premium products all contribute to the growth of this distribution segment.
North America dominates the alcoholic beverage industry due to a surge in the young adult population. Furthermore, rising demand for high-quality alcoholic beverages would propel the area's alcoholic beverages market forward throughout the forecast period. The alcoholic drinks industry is expected to grow significantly as disposable income in Asia-Pacific rises. Furthermore, the region's alcoholic beverage industry is expected to grow in the coming years as a result of the progressing countries. Craft beer, craft spirits, and Japanese spirits are the fastest-growing segments, owing to consumer perceptions of premium quality in craft spirits and the country's concept of mindful drinking.
Some of the main competitors dominating the global Alcoholic Beverages market include- Anheuser Busch-InBev, Miller Coors, Heineken Holdings N.V., Carlsberg A/S, Diageo PLC, Bacardi Limited PLC, Olvi PLC, Tsingtao Brewery Company Limited, Beijing Yanjing Brewery Company Limited and Kirin Holdings Company Limited.
By Alcoholic Content
By Packaging Type
By Distribution Channel
The demand for premium and super-premium alcoholic beverages is increasing rapidly in both developed and emerging economies. The growing trend of socializing and mid-week/weekend parties among young and working professionals has also influenced the market positively.
According to the Zion Market Research report, the global market size was around USD 1,729.50 million in 2021 and is estimated to grow to about USD 2005.69 million by 2028, with a compound annual growth rate (CAGR) of approximately 2.50 percent over the forecast period.
North America dominates the alcoholic beverage industry due to a surge in the young adult population. Furthermore, rising demand for high-quality alcoholic beverages would propel the area's alcoholic beverages market forward throughout the forecast period.
Some of the main competitors dominating the global Alcoholic Beverages market include- Anheuser Busch-inBev, Miller Coors, Heineken Holdings N.V., Carlsberg A/S, Diageo PLC, Bacardi Limited PLC, Olvi PLC, Tsingtao Brewery Company Limited, Beijing Yanjing Brewery Company Limited and Kirin Holdings Company Limited.