Alcoholic Beverages Market Forecasts to 2028 - Global Analysis By Product Type, Distribution Channel, Flavor, Packaging and By Geography

According to Stratistics MRC, the Global Alcoholic Beverages Market is accounted for $1,626.3 billion in 2022 and is expected to reach $3,262.0 billion by 2028 growing at a CAGR of 12.3% during the forecast period. An alcoholic beverage is a beverage made by combining ethanol with grains, fermented fruits, and sugar. Ciders and wines are manufactured from fermented fruit, whereas spirits and beers are derived from fermented rye and barley. The amount of alcohol in the beverage depends on how long it is held and the container in which it is fermented. Alcoholic beverages are widely utilised as recreational and revitalising liquids. Because of a growing youth population, rising middle-class income, and a healthy economy, the global alcoholic beverages market is expanding rapidly.

According to the US Brewers Association, in 2021, 65.7% of craft beer production in the United States took place in regional breweries. The increase in the number of microbreweries has also increased the production of craft beer in the market. In 2021, 18.4% of craft beer in the United States was crafted in local microbreweries.

Market Dynamics:

Driver:

Increasing the number of internet venues for purchasing alcoholic drinks

The rising online platform for purchasing alcoholic beverages is expected to boost market growth. There are various internet websites that provide alcoholic beverage distribution services and corporate beer and wine service. A significant distribution services facility from several manufacturers to various countries, as well as local breweries and liquor stores, is also available. All online alcohol order platforms, however, must be made, transported to, and processed by an adult or older. As a result, expanding online platforms for purchasing alcoholic beverages supports industry growth.

Restraint:

Increasing inclination of consumers towards non-alcoholic beverages0

The growing public preference for non-alcoholic beverages such as carbonated drinks, tonic water, fruit punch, and sparkling water may limit market growth. Non-alcoholic beverages serve to decrease blood pressure and sustain heart rate, lowering the market demand for alcoholic beverages.

Opportunity:

Premium products are becoming increasingly popular

The growing demand for premium products will open up numerous prospects for the expansion of the alcoholic beverages market. The fastest-growing segment of the alcohol industry in the United States is the ready-to-drink cocktail business, which has the ability to expand into new regions while simultaneously providing access to premium drinks of bar quality. Cutwater cocktails, for example, are becoming increasingly popular. As a result, the increased demand for premium items drives market growth. An expanding population generates a high demand for alcoholic beverages, which could provide abundant prospects for market expansion.

Threat:

Side effects of alcoholic beverages

Overdoes of alcoholic beverages are related with a variety of negative effects, including high blood pressure, heart disease, stroke, liver disease, and digestive issues and other cancers such as breast, mouth, throat, oesophagus, voice box, liver, colon, and rectum cancer. As a result of all of these side effects, demand for alcoholic beverages falls, hampered industry growth.

COVID-19 Impact:

The closure of specialised shops, bars, pubs and restaurants during the COVID-19 outbreak had a significant influence on the alcoholic beverages business. Retailers gained confidence as lockdown measures were eased in mid-2020. At the same time, high price increases were recorded in several nations, primarily due to government rules and taxes, which had a minor impact on the market analysed.

The wine segment is expected to be the largest during the forecast period

The wine segment is estimated to have a lucrative growth; due to Wine is the world's oldest and most popular type of alcoholic beverage. It is one of the most popular and commonly available alcoholic beverages, enjoyed as table spirits in European countries. Because of the growing association of this type with various occasions and food servings, it has become a versatile drink that can be consumed in cocktails as well as on its own. The combination of authentic taste and premium-sized attraction to consumers has led in increased sales in the global market.

The On Premises segment is expected to have the highest CAGR during the forecast period

The On Premises segment is anticipated to witness the highest CAGR growth during the forecast period, due to more product choice at lower pricing than pubs, bars, and other on-trade outlets has enhanced the appeal of retail counters around the world. Investors are concentrating their efforts on the creation of modern trades and convenient retail sites to provide quick shopping at affordable rates in the market, which is collecting significant income. On the other hand, the increasing adoption of various drinking practises has resulted in consumer dine-out trends. Rising Westernisation and cross-cultural trends around the world are projected to boost the popularity of on-trade channels in the near future.

Region with highest share:

North America is projected to hold the highest market share during the forecast period owing to its large young adult population; North America leads the alcoholic beverage business. Over the projected period, the alcoholic beverages market is likely to benefit from increased demand for high-quality alcoholic beverages. Because of rising disposable money, the North American alcohol market is expected to develop considerably. In the coming years, developing countries are likely to fuel the region's alcoholic beverage sector.

Region with highest CAGR:

Asia Pacific is projected to have the highest CAGR over the forecast period, owing to rising disposable income. Furthermore, rising demand for agave-based spirits from emerging economies such as India and China would fuel market expansion in this region. Furthermore, increased consumption of high-quality alcoholic beverages will drive market expansion in this region even further.

Key players in the market:

Some of the key players profiled in the Alcoholic Beverages Market include: Bacardi Limited, Diageo PLC, Anheuser-Busch InBev, Heineken Holding NV, Boston Beer Company Inc., Molson Coors Brewing Company, Carlsberg Group, Suntory Beverage & Food Limited, Constellation Brands Inc., Asahi Group Holdings Ltd, Pernod Ricard, Tsingtao Brewery Co., Ltd., Suntory Holdings Limited, Budweiser Brewing Company APAC Limited, Anheuser-Busch InBev SA/NV, Beijing Yanjing Brewery Co, Wuliangye Yibin Co., Ltd, CASTEL FRERES., Halewood International Limited and Davide Campari-Milano N.V.

Key Developments:

In March 2023, Diageo completes acquisition of Don Papa Rum, This acquisition is in line with Diageo's strategy to acquire high growth brands with attractive margins that support premiumisation.

In Nov 2022, Diageo acquires leading Texas super premium whisky distiller, Balcones Distilling, The team also leverages distinctive high quality, and often locally sourced, original ingredients, including Texas-grown malted barley and roasted blue corn, to produce a range of highly decorated whiskies.

In Oct 2022 Bacardi launched an Indian-made whiskey named Legacy. Bacardi intends to create a discount pricing category for its customers through Legacy in order to further strengthen its expansion plan in India.

Product Types Covered:

• Beer
• Wine
• Distilled Spirits
• Other Product Types

Distribution Channels Covered:

• On Premises
• Liquor Stores
• Convenience Stores
• Internet Retailing
• Supermarkets
• Grocery Shops

Flavors Covered:

• Unflavored
• Flavored

Packagings Covered:

• Plastic Bottles
• Tins
• Glass Bottles

Regions Covered:

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • Italy
  • France
  • Spain
  • Rest of Europe
• Asia Pacific
  • Japan
  • China
  • India
  • Australia
  • New Zealand
  • South Korea
  • Rest of Asia Pacific
• South America
  • Argentina
  • Brazil
  • Chile
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Qatar
  • South Africa
  • Rest of Middle East & Africa

What our report offers:

• Market share assessments for the regional and country-level segments
• Strategic recommendations for the new entrants
• Covers Market data for the years 2020, 2021, 2022, 2025, and 2028
• Market Trends (Drivers, Constraints, Opportunities, Threats, Challenges, Investment Opportunities, and recommendations)
• Strategic recommendations in key business segments based on the market estimations
• Competitive landscaping mapping the key common trends
• Company profiling with detailed strategies, financials, and recent developments
• Supply chain trends mapping the latest technological advancements

Free Customization Offerings:

All the customers of this report will be entitled to receive one of the following free customization options:

• Company Profiling
  • Comprehensive profiling of additional market players (up to 3)
  • SWOT Analysis of key players (up to 3)
• Regional Segmentation
  • Market estimations, Forecasts and CAGR of any prominent country as per the client's interest (Note: Depends on feasibility check)
• Competitive Benchmarking
  • Benchmarking of key players based on product portfolio, geographical presence, and strategic alliances