Market Overview:
The alcoholic beverages market includes beer, wine, spirits, and other alcoholic drinks. Beer is the most consumed alcoholic beverage globally with increasing demand especially across developing regions. Beer production requires raw materials like malted cereal grains, water, and yeast. Wine is produced by fermentation of grapes and other fruits. Spirits include distilled beverages like whiskey, rum, vodka etc. made by fermenting and distilling starch/sugar-containing materials. Alcoholic beverages are enjoyed for social and cultural rituals worldwide.
The alcoholic beverages market is estimated to be valued at US$ 1,769.41 Bn in 2023 and is expected to exhibit a CAGR of 2.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
One of the major drivers fueling growth of the alcoholic beverages market is rising consumption among millennials. Millennials represent a large part of the global population and drinking age group. Their exposure to global cultures and preferences for unique experiences is driving experimentation with different alcoholic beverages. Moreover, rising disposable incomes allow millennials to spend more on premium and craft alcoholic drinks. Another driver is the increasing social acceptability of alcohol. Earlier alcohol consumption was considered a taboo in many regions and communities but growing western influence and liberalization has made alcohol a mainstream part of socializing and celebrations globally. However, stringent government regulations around alcohol advertising and health risks related to excessive drinking act as a challenge for the industry.
SWOT Analysis
Strength: The alcoholic beverages market has strong brand recognition with many established players. Products from leading brands like Budweiser, Heineken and Bacardi are known globally. There is a wide variety of alcoholic beverages available to suit different tastes and preferences. Innovation in product flavors and packaging keeps consumers interested.
Weakness: Overconsumption of alcohol can lead to health issues like liver damage and cancers. Strict government regulations and increasing taxes on alcoholic beverages in many countries can impact sales. The growing health-conscious consumer base prefers low-calorie or healthy drink options. Underage drinking is a social issue.
Opportunity: Emerging markets in Asia Pacific and Latin America provide new opportunities for growth due to rising disposable incomes and changing social trends. Premium and craft beer segments are growing rapidly as consumers seek variety. Innovation in cocktail mixes and ready-to-drink products is expanding the market.
Threats: Growing popularity of no-and-low alcohol beverages is a threat as they are perceived as healthier options. Changing social attitudes towards excessive drinking can reduce consumption in regions. Economic downturns may impact discretionary spending on alcohol. Rising input costs like agricultural commodities could squeeze profits.
Key Takeaways
The global alcoholic beverages market is expected to witness high growth, exhibiting CAGR of 2.5% over the forecast period, due to increasing social acceptance of drinking and emergence of premium product segments. The market size for 2023 is US$ 1,769.41 billion.
Regional analysis: Asia Pacific region dominates the global alcoholic beverages market currently with over 40% value share due to large consumer bases in China and India. The region is forecast to be the fastest growing market, driven by rising incomes, changing social attitudes and popularity of Western drinks in developing nations. North America is the second largest region whereas Europe has the most mature and innovative craft brewing industry.
Key players operating in the alcoholic beverages market are Anheuser-Busch Inbev (BUD) (Belgium), Asahi Group (Japan), Bacardi (Bermuda), Brown Forman (U.S.), Carlsberg (Denmark), Constellation Brands (U.S.), Diageo (U.K.), Heineken (Netherlands), Pernod Ricard (France), Suntory (Japan). These companies hold majority market share and are focusing on innovations, expansions and mergers acquisitions to strengthen their positioning.
