Alcoholic Beverages Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

The 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 all the above segments.

Market Snapshot

alcoholic beverage market
Study Period: 2016 - 2026
Base Year: 2020
Fastest Growing Market: Asia Pacific
Largest Market: Europe
CAGR: 3.4 %

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Market Overview

The alcoholic beverages market is projected to register a CAGR of 3.4% during the forecast period, 2021 - 2026.

With the onset of COVID-19, the alcoholic beverages market was severely impacted, mostly due to the closure of specialty shops, bars, pubs, and restaurants. During the mid-2020, the ease in lockdown measures had led retailers to gain confidence, while a steep increase in prices was observed in some countries mostly due to government regulations and taxes, thus minimally affecting the market studied.

Also, the demand for hard drinks such as whiskey and gin had soared up during the pandemic, while products such as beer witnessed growth in terms of volume. In-house consumption, along with the stocking of brands, has been one of the propelling factors for the market to sustain during the pandemic.

Over the medium term, the market is likely to be driven by the increase in the global young-adult demographic, coupled with high disposable income and consumer demand for premium/super-premium products.

On a global level, beer drives the market for alcoholic beverages, while on the regional level, Asia-Pacific is expected to dominate the global market during the forecast period. In the market studied, growth in online retailing has been observed. For instance, Drizly, an alcohol e-commerce platform, experienced growth in online alcohol delivery revenue.

Scope of the Report

​Alcoholic beverages comprise a large group of beverages that contain varying amounts of alcohol (ethanol). The global market for alcoholic beverages is segmented by product type into beer, wines, spirits, and other product types. By distribution channel, the market is segmented into off-trade and on-trade. Under off-trade, the market is further segmented into supermarkets/hypermarkets, specialist stores, online stores, and other off-trade channels. By geography, the market is segmented into North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).

By Product Type
Beer
Wines
Spirits
Other Product Types
By Distribution Channel
On-trade
Off -trade
Supemarkets/Hypermarkets
Specialist Stores
Online Stores
Other Off-trade Channels
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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Key Market Trends

Premiumization is Driving the Alcoholic Beverages Market

Consumers around the world today have more sophisticated palates compared to a decade ago. They are constantly looking to explore unique, high-quality alcoholic beverages. The inclusion of natural ingredients in alcoholic beverages improves their functionality, and such products are gathering a lot of attention from consumers.​

The increase in health awareness among people, promoting the inclusion of functional and natural ingredients, provides greater opportunity for the premium alcohol market. There have been humongous sales coming in from the foodservice industry over the recent past, with considerable sales coming from premium alcoholic beverages, especially premium wine and whiskey. ​

According to the Distilled Spirits Council, American rye in the spirits market recorded an increase of 15.9% to 1.1 million 9-liter cases in 2018 in the United States. This has led to the growth in demand for premium and super-premium whiskey in 9-liter cases.​

Alcoholic Beverage Market 1

The United States Dominates the Alcoholic Beverages Market

There is increasing popularity of low-alcohol beers and ciders, which is attributed to a growing awareness of alcohol unit consumption and the customers' willingness to try new variants in the United States. This shift in trend is witnessed in the demand for low-alcohol drinks by volume in the country, where the sales of off-licenses and supermarkets have soared to a high record.​

Craft beer, craft spirits, and Japanese spirits are the fastest-growing segments owing 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 by more than 10,000 wineries across the country, where California held the highest share, i.e., more than 85%, followed by Washington, Oregon, New York, Texas, and Virginia.​ The American consumers are becoming more attracted to wines with descriptors, no taste additives, gluten-free, low carb, vegan-friendly, sulfite-free, low calorie, low alcohol, light, lighter, organic, paleo-friendly, etc. This is attributable to the rising focus on healthy food and beverages that is sweeping across the nation.​

Alcoholic Beverage Market2

Competitive Landscape

The market studied is highly competitive. 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, Bacardi Limited, and Constellation Brands. ​The alcoholic beverages market is expected to witness significant growth over the forecast period, owing to the development of several marketing strategies that greatly rely on product innovation, product differentiation policies in terms of ingredients added, and packaging and branding of the products via social media to attract the target group of consumers.

Recent Developments

  • In 2019, The English Whiskey Co. Liqueurs launched two new varieties, Norfolk Quince Whiskey and Norfolk Redcurrent Whiskey, which are a blend of hand distilled English single malt and traditional British Fruits.
  • In 2018, AB InBev’s venture capital division, ZX Ventures, opened a new brewery in Wuhan, China, to tap into the rising demand for craft beer.
  • In 2018, Diageo PLC acquired Pierde Almas, a Mexican mezcal brand, to strengthen its presence in Mexico. ​

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

      2. 5.1.2 Wines

      3. 5.1.3 Spirits

      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 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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Frequently Asked Questions

The Global Alcoholic Beverages Market market is studied from 2016 - 2026.

The Global Alcoholic Beverages Market is growing at a CAGR of 3.4% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Europe holds highest share in 2020.

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

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