Alcoholic Beverages Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)

The Global Alcoholic Beverages Market is Segmented by Product Type (Beer, Wines, Spirits, and Other Product Types), Distribution Channel (On-Trade and Off-Trade), and Geography (North America, Europe, Asia-Pacific, South America, and Middle East and Africa). The Report Offers the Market Sizes and Forecast of Alcoholic Beverages in Value (USD Million) for the Above Segments.

Alcoholic Beverages Market Size

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Alcoholic Beverages Market Summary
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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

Alcoholic Beverages Market  Major Players

*Disclaimer: Major Players sorted in no particular order

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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 Market Trends

Premiumization is Driving the Market

Consumers worldwide have a more sophisticated palate now. They are always looking for distinctive and high-quality alcoholic beverages. This has increased the demand for premium-quality alcoholic beverages in the market. According to Distilled Spirits Council of the United States, in 2021, 21.7 million 9-liter cases of premium whiskey and 21.1 million 9-liter cases of premium vodka were consumed. Also, the year-on-year growth rate for super-premium whiskey and vodka accounted for 14.1% and 13.9%, respectively. 

The increased health consciousness of consumers has boosted the demand for premium alcoholic beverages in an effort to avoid alcohol poisoning, which is caused by consuming inadequate alcohol. This rise in health awareness has resulted in the creation of functional premium alcoholic beverages. The inclusion of different natural and exotic ingredients in alcohol tends to improve its functional properties, thereby gaining attention from a larger set of customers. For instance, in March 2022, Whitley Neill, a premium gin brand in the United Kingdom, launched a new gin variant, namely, Oriental Spiced Gin. This gin consists of different botanicals and spices like coriander, ginger, chili, cumin, saffron, star anise, and grains of paradise. 

Therefore, the rising popularity of premium and super-premium alcoholic beverages is expected to drive market demand during the forecast period.

Alcoholic Beverage Market: Volume Share of Spirit (in %), By Price Category, United States, 2021

North America Holds the Significant Market Share

North America dominates the alcoholic beverage industry due to the high portion of the young adult population. The rising demand for high-quality alcoholic drinks is expected to boost the alcoholic beverages market over the forecast period. The North American alcohol market is anticipated to grow dramatically due to the increased disposable income. Developing countries are expected to drive the region's alcoholic beverage industry in the coming years. Craft beer and craft spirits are the fastest-growing segments due to the consumer perception of craft spirits as premium quality and the concept of mindful drinking in the country.

The US wine market is being catered to by more than 10,000 wineries, with California holding the highest share, i.e., more than 85%, followed by Washington, Oregon, New York, Texas, and Virginia. American consumers are becoming more attracted to wines with descriptors such as no taste additives, gluten-free, low carb, vegan-friendly, sulfite-free, low calorie, low alcohol, light, lighter, organic, paleo-friendly, etc. This popularity is attributable to the rising focus on healthy food and beverages across the country.

Alcoholic Beverage Market: Market Size (), By Geography, Global, 2021

Alcoholic Beverages Industry Overview

The market is highly competitive, and major players account for significant shares in the market. Some of the largest market players in the alcoholic beverages market are Diageo, Anheuser-Busch InBev, Heineken Holding NV, Bacardi Limited, and Constellation Brands. The players in the alcoholic beverages market use various strategies in order to increase their sales. These strategies include mergers and acquisitions, partnerships, and product innovations. For instance, in June 2021, Diageo India announced its debut in craft whisky with United's Epitome Reserve. Epitome Reserve is a small-batch, artisanal craft, 100% rice whisky. This limited edition whisky was only released in a batch of 2,000 numbered bottles.

Alcoholic Beverages Market Leaders

  1. Anheuser-Busch InBev

  2. Heineken Holding NV

  3. Diageo

  4. Bacardi Limited

  5. Constellation Brands Inc.

*Disclaimer: Major Players sorted in no particular order

Alcoholic Beverages Market  Concentration
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Alcoholic Beverages Market News

  • November 2022: Diageo acquired Balcones Distilling (often known as "Balcones"), a Texas craft distiller and one of the leading manufacturers of American Single Malt Whisky in the United States.
  • October 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.
  • March 2022: Constellation Brands Inc., a leading beverage alcohol company, entered a brand authorization agreement with The Coca-Cola Company in the United States to bring the FRESCA brand into the alcohol beverages category.

Alcoholic Beverages Market Report - Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Product Type

      1. 5.1.1 Beer

        1. 5.1.1.1 Ale

        2. 5.1.1.2 Lager

        3. 5.1.1.3 Hybrid

      2. 5.1.2 Spirits

        1. 5.1.2.1 Rum

        2. 5.1.2.2 Vodka

        3. 5.1.2.3 Whiskey

        4. 5.1.2.4 Other Spirits

      3. 5.1.3 Wines

      4. 5.1.4 Other Product Types

    2. 5.2 By Distribution Channel

      1. 5.2.1 On-trade

      2. 5.2.2 Off -trade

        1. 5.2.2.1 Supemarkets/Hypermarkets

        2. 5.2.2.2 Specialist Stores

        3. 5.2.2.3 Online Stores

        4. 5.2.2.4 Other Off-trade Channels

    3. 5.3 By Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

        4. 5.3.1.4 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 United Kingdom

        2. 5.3.2.2 Germany

        3. 5.3.2.3 Spain

        4. 5.3.2.4 France

        5. 5.3.2.5 Italy

        6. 5.3.2.6 Russia

        7. 5.3.2.7 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 Australia

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle East and Africa

        1. 5.3.5.1 United Arab Emirates

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Most Adopted Strategies

    3. 6.3 Market Share Analysis

    4. 6.4 Company Profiles

      1. 6.4.1 Diageo PLC

      2. 6.4.2 Bacardi Limited

      3. 6.4.3 Constellation Brands Inc.

      4. 6.4.4 Anheuser-Busch InBev

      5. 6.4.5 Heineken Holding NV

      6. 6.4.6 Molson Coors Brewing Company

      7. 6.4.7 Boston Beer Company Inc.

      8. 6.4.8 Asahi Group Holdings Ltd

      9. 6.4.9 Carlsberg Group

      10. 6.4.10 Suntory Beverage & Food Limited

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability
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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).

By Product Type
Beer
Ale
Lager
Hybrid
Spirits
Rum
Vodka
Whiskey
Other Spirits
Wines
Other Product Types
By Distribution Channel
On-trade
Off -trade
Supemarkets/Hypermarkets
Specialist Stores
Online Stores
Other Off-trade Channels
By Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
United Kingdom
Germany
Spain
France
Italy
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
United Arab Emirates
South Africa
Rest of Middle East and Africa
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Alcoholic Beverages Market Research FAQs

The Alcoholic Beverages Market is projected to register a CAGR of 3.40% during the forecast period (2024-2029)

Anheuser-Busch InBev, Heineken Holding NV, Diageo, Bacardi Limited and Constellation Brands Inc. are the major companies operating in the Alcoholic Beverages Market.

Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).

In 2024, the North America accounts for the largest market share in Alcoholic Beverages Market.

The report covers the Alcoholic Beverages Market historical market size for years: 2018, 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Alcoholic Beverages Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.

The major factors driving the demand for the Alcoholic Beverages Market are a) Availability of various alcoholic beverages through online platforms and grocery stores b) Innovation of new flavors, ingredients, and brewing techniques

Alcoholic Beverages Industry Report

The global alcoholic beverages market is witnessing significant growth, driven by factors such as a burgeoning youth population, rising middle-class income, and a robust economy. This growth is further fueled by the increasing demand for new variants in alcoholic beverages, leading to a revolution in craft beer formulation. Both regional and global breweries are ramping up production to meet this demand. The market is also experiencing a surge in demand for high and primary alcoholic beverages as consumers become more conscious of the negative effects of low alcohol consumption. The market segmentation includes product type, alcoholic content, flavor, category, packaging, and distribution channel. The growing consumer preference for hybrid beverages, which blend unique flavor combinations and production methods from various drinks, is also propelling market growth. However, the market faces hurdles such as the side effects associated with alcoholic beverages and a rising consumer inclination towards non-alcoholic beverages. Mordor Intelligence™ Industry Reports provide statistics for the 2024 Alcoholic Beverages market share, size, and revenue growth rate, along with an analysis that includes a market forecast outlook to 2029 and a historical overview. A sample of this industry analysis is available as PDF download.

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Alcoholic Beverages Market Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)