Market Size of Alcoholic Beverages Industry
| Study Period | 2018 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR (2024 - 2029) | 3.40 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Alcoholic Beverages Market Analysis
The Alcoholic Beverages Market is expected to register a CAGR of 3.40% during the forecast period.
The alcoholic beverages market is expected to register a CAGR of 3.4% during the forecast period.
The global alcoholic beverages market is growing due to the increasing youth population, rising middle-class income, and a strong economy. The rising consumer demand for new variants, in the case of alcohol, has created a revolution in craft beer formulation. Many breweries have chosen to develop newer product varieties with the required characteristics, thereby formulating mild-lager beer for consumers. To cater to the upsurge in market demand, the production of craft beer in different global and regional breweries has increased significantly. For instance, 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.
The market is likely to be driven by the increasing global young-adult demographic, coupled with high disposable income and consumer demand for premium/super-premium products. Globally, beer drives the market for alcoholic beverages. Regionally, North America and Asia-Pacific are expected to dominate the market during the forecast period. In the market studied, growth in online retailing has been observed. In the past few years, Drizly, an alcohol e-commerce platform, experienced revenue growth in online alcohol delivery.
During the COVID-19 outbreak, the alcoholic beverages market was severely impacted by the closure of specialty shops, bars, pubs, and restaurants. During mid-2020, the easing of lockdown measures led retailers to gain confidence. At the same time, a steep increase in prices was observed in some countries, mostly due to government regulations and taxes, thus minimally affecting the market studied. For instance, on March 24, 2020, Pernod Ricard revised its outlook for the current fiscal year and expected its profit margins to decline by nearly 20%, mainly due to the spread of COVID-19. Companies also witnessed a surge in their off-premise sales compared to on-premise sales. For instance, Constellations Brands saw a 30% rise in its beer volume in the US off-premise channel in February 2020, as the customers avoided on-premise to stem the spread of COVID-19. The demand for hard drinks, such as whiskey and gin, grew during the pandemic, while beer witnessed volume growth. In-house consumption, along with the stocking of brands, has been one of the driving factors of the market to sustain during the pandemic.
Alcoholic Beverages Industry Segmentation
Alcoholic beverages comprise a large group of beverages containing varying amounts of alcohol (ethanol).
The market for alcoholic beverages is segmented by product type, distribution channel, and geography. Based on product type, the market is segmented by beer, wines, spirits, and other product types. Beer is further segmented by ale, lager, hybrid, and spirits. Based on the distribution channel, the market is segmented by off-trade and on-trade. Under off-trade, the market is further segmented by supermarkets/hypermarkets, specialist stores, online stores, and other off-trade channels. Based on geography, the market is segmented by North America, Europe, Asia-Pacific, South America, and the Middle East and Africa. For each segment, the market sizing and forecast have been done based on value (in USD million).
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Alcoholic Beverages Market Size Summary
The alcoholic beverages market is experiencing steady growth, driven by factors such as an expanding youth demographic, increasing middle-class incomes, and a robust global economy. The demand for innovative and diverse alcohol variants has spurred a significant rise in craft beer production, with breweries worldwide, particularly in North America, ramping up their offerings to meet consumer preferences. The market is predominantly led by beer, with North America and Asia-Pacific expected to maintain their dominance. The rise of online retailing has further bolstered market expansion, as platforms like Drizly have seen substantial revenue growth in alcohol delivery services. Despite the challenges posed by the COVID-19 pandemic, which temporarily disrupted on-premise sales, the market adapted with a surge in off-premise consumption and a growing interest in premium and super-premium products.
The increasing sophistication of consumer tastes has led to a heightened demand for high-quality alcoholic beverages, with a notable shift towards premium offerings. This trend is supported by the introduction of functional premium drinks, incorporating natural and exotic ingredients to enhance their appeal. North America remains a key player in the industry, with a significant portion of its young adult population driving demand for premium drinks. The craft beer and spirits segments are rapidly growing, perceived as offering superior quality. The US wine market is also expanding, with a focus on health-conscious attributes such as being gluten-free and organic. The competitive landscape is marked by major players like Diageo, Anheuser-Busch InBev, and Bacardi, who are actively engaging in mergers, acquisitions, and product innovations to capture market share.
Alcoholic Beverages Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 By Product Type
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2.1.1 Beer
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2.1.1.1 Ale
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2.1.1.2 Lager
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2.1.1.3 Hybrid
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2.1.2 Spirits
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2.1.2.1 Rum
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2.1.2.2 Vodka
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2.1.2.3 Whiskey
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2.1.2.4 Other Spirits
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2.1.3 Wines
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2.1.4 Other Product Types
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2.2 By Distribution Channel
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2.2.1 On-trade
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2.2.2 Off -trade
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2.2.2.1 Supemarkets/Hypermarkets
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2.2.2.2 Specialist Stores
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2.2.2.3 Online Stores
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2.2.2.4 Other Off-trade Channels
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2.3 By Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 United Kingdom
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2.3.2.2 Germany
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2.3.2.3 Spain
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2.3.2.4 France
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2.3.2.5 Italy
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2.3.2.6 Russia
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle East and Africa
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2.3.5.1 United Arab Emirates
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2.3.5.2 South Africa
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2.3.5.3 Rest of Middle East and Africa
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Alcoholic Beverages Market Size FAQs
What is the current Alcoholic Beverages Market size?
The Alcoholic Beverages Market is projected to register a CAGR of 3.40% during the forecast period (2024-2029)
Who are the key players in Alcoholic Beverages Market?
Anheuser-Busch InBev, Heineken Holding NV, Diageo, Bacardi Limited and Constellation Brands Inc. are the major companies operating in the Alcoholic Beverages Market.
