Alcoholic Beverages Market to Witness Growth on the Back of Increasing Consumption of Premium Alcoholic Beverages

 

The global alcoholic beverages market is estimated to be valued at US$ 1,769.41 billion in 2023 and is expected to exhibit a CAGR of 2.5% over the forecast period 2023-2030.

Alcoholic beverages contain ethyl alcohol and are consumed for pleasure or socializing. Common types of alcoholic beverages include beer, wine, and spirits. Beer is one of the most popular and widely consumed alcoholic beverages globally. The alcohol by volume content in beer ranges between 3%-9%. Wine is produced by fermenting grapes or other fruits and is classified as still, sparkling, fortified or dessert wines based on alcohol content and production method. Spirits contain a high concentration of ethyl alcohol and are produced by distilling fermented substances like grains, fruits or vegetables.

Key Takeaways

Key players operating in the alcoholic beverages market are Anheuser-Busch Inbev (BUD) (Belgium), Asahi Group (Japan), Bacardi (Bermuda), Brown Forman (U.S.), Carlsberg (Denmark), Constellation Brands (U.S.), Diageo (U.K.), Heineken (Netherlands), Pernod Ricard (France), Suntory (Japan). The alcoholic beverages industry is dominated by few major players who account for a significant share of the global market. Key players are focusing on expanding their production capabilities and global footprint through mergers and acquisitions to leverage new market opportunities.

Increasing disposable incomes across developing economies are allowing consumers to spend more on premium and super-premium beverages. This is driving the sales of high-end wines, craft beers and specialty spirits globally. The number of legal drinking age population is also on the rise worldwide, offering new customers to alcoholic beverage companies. Major players are targeting developing Asian countries and Latin American markets which are expected to outpace global market growth over the forecast period.

The global alcoholic beverages market is set to witness substantial growth in the upcoming decade driven by rising disposable incomes and changing social attitudes towards alcohol consumption in developing countries. Urbanization is also playing a role in popularizing cocktails, craft drinks and late-evening socializing in cities globally. However, increasing health awareness, peer pressure from relatives and friends may restrain individuals from excessive drinking in the long run. Stricter regulations on marketing and packaging are another growth challenges for players looking increase market share.

Market Drivers

Rising disposable incomes: Developing economies across Asia Pacific and Latin America are experiencing substantial growth in middle-class population along with rising disposable incomes. This allows consumers to spend more on premium alcoholic beverages boosting category sales.

Changing social attitudes: Attitudes towards casual drinking are changing in developing world. Social acceptance of drinking at social events, parties is rising in countries like China, India offering growth opportunities for companies.

Market Restraints

Increasing health awareness: With increasing non-communicable disease burden, governments and health advocacy groups are discouraging excessive or underage drinking. This may slowdown category growth over long term.

Stringent regulations: Regulators worldwide are imposing stricter rules on marketing, advertising and labelling of alcoholic drinks. Taxes are also being hiked in many nations to curb irresponsible drinking limiting opportunities.

Segment Analysis

The alcoholic beverages market is dominated by beer owing to its widespread acceptance and consumption globally. Beer accounted for over 30% share of the overall market in 2023 owing to factors like innovative flavors and targeted marketing by key players. The spirits segment also holds a sizable share and is expected to witness steady growth going forward led by demand for premium and super premium products especially whiskey and vodka. The wine segment has diversified into new varieties in recent years and popularity of flavored wines among millennials is driving new opportunities.

Global Analysis

In terms of regions, North America holds the largest share in the alcoholic beverages market attributable to high per capita consumption in countries such as United States. However, Asia Pacific region is poised to witness the fastest growth during the forecast period led by changing social attitude and inflating disposable incomes in developing nations like China and India. Additionally, advancement in production and distribution networks along with growing international presence of key players is strengthening the market in regions like Latin America and Middle East & Africa.