May 29, 2024
Alcoholic Beverages Market

Increased Disposable Income Is Anticipated To Openup The New Avanue For Alcoholic Beverages Market

Market Overview:

The alcoholic beverages market comprises products such as beer, wine, spirits, and RTD/high-strength premixes. Beer is one of the most popular alcoholic beverages consumed globally. It is produced by the fermentation of grains such as barley and wheat. Major types of beer include lager, ale, stout, and others. Wine is produced from fermented grape juice and is categorized as still, sparkling, dessert, and fortified wine. Spirits are distilled beverages with high alcohol content and include whiskey, vodka, rum, gin, and others. RTD/high-strength premixes are ready-to-drink pre-mixed alcoholic beverages available in cans or bottles.

Market Dynamics:

Increasing disposable incomes coupled with changing lifestyles and preferences are expected to drive the market growth over the forecast period. The consumption of premium and super-premium alcoholic beverages is growing with increased spending power and evolving tastes. For instance, sales of super-premium and craft beers are rising globally as consumers seek variety and uniqueness. Moreover, growing socialization in urban areas has boosted the on-trade sales of alcoholic beverages consumed at bars, restaurants, pubs, and clubs. The market is also witnessing new product launches catering to the rising demand for novel flavors and customized drinks. For example, companies are introducing beers infused with different fruits and herbs. However, stringent government regulations around alcohol advertising and promotion may hinder market growth.

Segment Analysis

The alcoholic beverages market is segmented by product type into beer, wine, spirits and others. The beer segment dominates the alcoholic beverages market, with a share of over 40%. Beer is the most popular alcoholic drink consumed globally. Factors such as new product launches with innovative flavors, regional preferences and growing social acceptability have augmented the growth of the beer segment.

PEST Analysis

Political: Regulations related to advertising, marketing, labeling and pricing of alcoholic beverages vary across countries. Favorable deregulation policies will boost the market growth.
Economic: Rising disposable incomes and changing lifestyles have increased social drinking and outdoor consumption. However, economic slowdowns can negatively impact the market.
Social: Alcohol consumption has become an integral part of celebrations and social gatherings. Changing social attitudes towards drinking have positively influenced the market.
Technological: Technology advancements have led to automation in production processes, new product development through customization and usage of digital mediums for marketing.

Key Takeaways

The global alcoholic beverages market size was valued at US$ 1,769.41 Bn in 2023 and is expected to reach US$ 2,231.76 Bn by 2030, exhibiting a CAGR of 2.5% during the forecast period. The growing social acceptability of alcohol, rising disposable incomes and changing lifestyles, especially in developing nations are driving the market.

North America dominates the global market, with the U.S. accounting for the major share. Europe accounts for a prominent share as well, with countries such as Germany, the United Kingdom and France contributing significantly. Asia Pacific is expected to witness the fastest growth, led by China, India, and Japan.

Key players operating in the alcoholic beverages market are Halewood International Limited (U.K.), Davide Campari-Milano N.V. (Netherlands), Diageo (U.K.), ASAHI GROUP HOLDINGS, LTD. (Japan), Accolade Wines (Australia), Bacardi (Bermuda), Mike’s Hard Lemonade Co. (U.S.), CASTEL FRÈRES. (France), SUNTORY HOLDINGS LIMITED (Japan), Anheuser-Busch Companies LLC (U.S.), Brown‐Forman (U.S.), Pernod Ricard (France), Miller Brewing Co. (U.S.)

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it