A blend of fermented fruits, sugar, & grains, with an ethanol content of more than 1.2%, is called an alcoholic beverage, i.e., stored & fermented in several ways to bring out the best flavors for consumption. Such beverages are consumed widely by people across different regions worldwide as rejuvenating & recreational drinks.In addition, due to the vast popularity of alcoholic drinks, commercial places like cafes, restaurants, bars, and hotels, among others, also serve & experiment with these beverages to offer an attractive menu for the consumers.
The Global Alcoholic Beverages Market is projected to grow at around 3.2% CAGR during the forecast period, i.e., 2022-27. The growth of the market is driven principally by the growing number of alcohol consumers worldwide and their surging inclination toward premium drinks. It, in turn, is generating growth opportunities for the leading players to increase their production & distribution capacities and introduce new flavors & variants, i.e.,
Besides, the growing focus of many countries on enriching their cultural integrity is also portraying increasing consumption of alcoholic beverages, which, in turn, is augmenting the market growth. In addition, the active efforts of alcohol beverage manufacturers to strengthen their distribution channels worldwide is another aspect anticipated to play a crucial role in propelling the market expansion.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: US, Canada, Mexico|
|Europe: The UK, France, Germany, Italy, Spain, Rest of Europe|
|Asia-Pacific: China, India, Japan, South Korea, Singapore, Rest of Asia Pacific|
|South America: Brazil, Argentina, Rest of South America|
|Middle East & Africa: UAE, Saudi Arabia, South Africa, Turkey Rest of Middle East and Africa|
|Key Companies Profiled||
Anheuser-Busch InBev, Asahi Group Holdings Ltd., Bacardi Limited, Boston Beer Company Inc., Carlsberg Group, Constellation Brands Inc., Diageo PLC., Heineken Holding NV, Molson Coors Brewing Company, Suntory Beverage & Food Limited
|Unit Denominations||USD Million/Billion|
Moreover, swift development in the commercial sector, with the increasing establishment of cafes, bars & restaurants, hotels, etc., are also infusing the demand for alcoholic beverages for cocktail crafting & flavor experiments. Furthermore, the growing influx of tourists & migrants shall remain a prevalent factor in promoting the overall growth of the Global Alcoholic Beverages Market through 2027.
Key Trend in the Global Alcoholic Beverages Market
With the rapidly surging alcohol consumers & their growing sophistication, the demand for high-quality alcohol with a greater focus on flavor, ingredients, & aesthetic packaging is a key trend in the Global Alcoholic Beverages Market, i.e., encouraging the leading manufacturers to come up with premium alcohol.
Besides, growing health concerns among consumers are further instigating the leading market players to introduce products with natural & functional ingredients, which, in turn, would further boost the global market in the years to come.
Impact of Covid-19 on the Global Alcoholic Beverages Market
The advent of Covid-19 in 2020 had a decelerating impact on most industries worldwide, and the Global Alcoholic Beverages Market is no exception. The imposition of lockdown & stringent movement restrictions, which led to the suspension of business operations, bans on public gatherings, closure of bars, hotels, liquor shops, etc., and a substantial decline in product sales, caused significant revenue losses for the leading market players.
Besides, disruptions in the supply chains caused delays in the deliveries of raw materials, pre-produced goods, etc. However, post the first wave of the pandemic, the governments partially uplifted the restrictions, which brought back some fluidity in the market. With this, manufacturers witnessed a temporary upsurge in sales as people began to panic shop & stockpile products, owing to the uncertainty of the crisis.
Moreover, with regulations for alcohol distribution through online channels across some countries, the market witnessed considerable growth amidst the crisis. The leading players made a paradigm shift to digital platforms and offered services like door-step deliveries and an extensive range of alcoholic beverages of different budgets & brands for the customers. It, in turn, led to the dramatic upswing in the global market and generated growth opportunities for the players to increase their production capacities and meet the burgeoning consumer requirements.
Based on the Distribution Channel:
Amongst both, Off-trade channels are projected to dominate the Global Alcoholic Beverages Market with the largest share through 2027. It owes principally to the swift expansion of the commercial sector, i.e., leading to a growing establishment of cafes, bars & restaurants, & hotels, among others, offering an extensive range of alcoholic beverages at low costs and, in turn, portraying a massive influx of customers.
Besides, the increasing footfall of tourists & migrants across different countries are also driving the sales of alcoholic drinks through off-trade channels and propelling the market growth. Moreover, the easy availability of multiple brands of alcoholic beverages across supermarkets, hypermarkets, specialized stores, etc., which are a primary source of shopping among people, is also positively influencing the market growth.
On the other hand, On-Trade channels are expected to demonstrate the fastest growth in the global market, principally due to the growing inclination of manufacturers and massive support & encouragement from governments of different countries worldwide toward digital transformation, i.e., enabling the market leaders to sell their products through online platforms and provide easy purchase, discounts, and door-step deliveries to customers.
Moreover, the Covid-19 pandemic has also played a critical role in augmenting the demand for alcoholic beverages across these platforms, and the same trend is likely in the coming years, which, in turn, would create lucrative growth prospects for the global market.
Based on the Product Type:
Here, beer shall dominate the global market with the largest share during 2022-27. Beer is considered a social drink. Its growing popularity, especially among the young generation, whose lives revolve around pubs, cafes, hotels, restaurants, & other social locations, is driving its demand globally.
Besides, the formulation, taste, & flavors of beer, coupled with the emergence of several new brewing technologies, are other crucial aspects influencing its consumption patterns and, in turn, encouraging the leading players to introduce new varieties & crafts and expand their brand visibility across different regions in the world, thereby fueling the overall market growth.
Geographically, the Global Alcoholic Beverages Market expands across:
Amongst all regions globally, Europe is more likely to dominate the Alcoholic Beverages Market with the largest share during 2022-27. It owes principally to the rapidly increasing production & sales of beer due to cultural heritage in cuisines, coupled with an increasing influx of tourists & migrants, i.e., escalating the demand for cocktail crafting & beverage experimentation. Since Europe is one of the largest producers of alcoholic drinks like beer, the extensive presence of several microbreweries & breweries across different countries of the region is playing a prominent role in driving the regional market.
On the other hand, North America is anticipated to demonstrate the fastest market growth over the forecast years, owing prominently to young adults & their increasing inclination toward high-quality alcoholic beverages. Besides, the rapidly expanding restaurants, cafes, hotels, & bars is also contributing to the burgeoning demand for alcoholic beverages across the region and fueling the overall market growth.
Nonetheless, Asia-Pacific is anticipated to acquire a substantial market share through 2027, mainly due to the large number of alcohol consumers, which projects a myriad of growth prospects for the manufacturers to expand their business across the region. Besides, countries like China, India, and Australia, are the leading regional markets portraying a rapid production & distribution of alcoholic beverages.
Key Driver: Growing Beer Consumption due to Westernization & Increasing Disposable Income
The gradually improving purchase power of people, especially across regions like Asia-Pacific & South America, is leading to the burgeoning popularity & sales of alcoholic beverages like beer, which, in turn, is driving the Global Alcoholic Beverages Market. Besides, the rising influence of western culture on people across different countries in these regions is another prominent factor augmenting the demand for alcoholic beverages and stimulating the overall market growth.
Possible Restraint: Easy Availability of Non-Alcoholic & Energy Drinks
With the surging awareness about the ill effects of alcohol consumption, there's a shift in consumer preference toward non-alcoholic & energy drinks owing to their easy availability & no reported health risks, i.e., the prime growth restraint for the Global Alcoholic Beverages Market during w022-27.
Moreover, with restrictions on advertising alcoholic beverages on national television across different countries, the leading market players are facing severe difficulties in expanding their brand. However, the allowance to use surrogate products under the brand name for marketing is a relief for manufacturers.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Alcoholic Beverages Market is projected to grow at a CAGR of around 3.2% during 2022-27.
A. The growing popularity & sales of alcohol and the mounting prevalence of westernization are the prominent factors driving the Global Alcohol Beverages Market through 2027. On the other hand, spreading awareness about the ill effects of alcohol consumption, coupled with the easy availability of non-alcoholic & energy beverages, might hinder the growth of the global market in the years to come.
A. The escalating demand for high-quality alcohol with immense flavors, ingredients, & aesthetic packaging, i.e., instigating manufacturers to introduce more and more premium products, is the key trend in the Global Alcohol Beverages Market.
A. On-Trade distribution channels are anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Alcoholic Beverages Market over the forecast years.