Alcoholic Beverages Market Anticipates Steady 2.3% CAGR Through 2030

Alcoholic Beverages Market Snapshot

“The Alcoholic Beverages Market is estimated to increase at a CAGR of 2.3% from $ 1575.78 Billion in 2023 to $ 1875.89 Billion by 2030.”

An alcoholic beverage, made from fermented sugars like grains or fruits, is a narcotic substance made from ethanol, a form of alcohol, and is commonly referred to as an adult beverage, strong drink, or simply a drink.

Drinking is a significant social function in many cultures, with regulations governing its manufacture, sale, and consumption in most nations.

The World Health Organisation states that alcohol is the highest risk carcinogen and no amount of consumption is safe. The Centres for Disease Control and Prevention advise against starting to drink, and evidence suggests that moderate drinking has no overall beneficial effects on health.

Alcoholic drinks are made by fermenting sugars from fruits, berries, grains, plant saps, tubers, honey, and milk. The malt family, including ale, stout, porter, and malt liquor, is best known for beer, made with hops, malt, maize, and rice. Beers have an alcohol concentration ranging from 2 to 8 percent.

Wine is made from grape juice, apples, cherries, berries, or plums, fermented under strict temperature control in large vats from harvest. The juice is filtered, matured, and bottled after fermentation is complete.

Distilled spirits are produced through mashes of grain, fruit, or other ingredients. The fermented liquid is heated to evaporate alcohol and flavorings, then cooled and recondensed.

Distilled beverages, including whisky, gin, vodka, rum, brandy, liqueurs, or cordials, are concentrated liquids with alcohol content ranging from 40% to 50%. Water is left behind and discarded.

A meta-analysis of 107 cohort studies found that low daily alcohol consumption is neither harmful nor beneficial, but even at relatively low levels, it increases health and mortality risks.

Growth Drivers:

The number of online platforms for purchasing alcoholic beverages is on the rise.

The market growth is expected to be driven by the growing online marketplace for alcoholic drinks, with numerous websites offering delivery services and beer and wine services. Distribution services from manufacturers to international markets and nearby breweries and liquor stores are also significant. However, all online platforms require orders to be placed, delivered, and processed by adults 21 or older, promoting market expansion.

The preference for hybrid beverages is increasing among consumers.

Alcoholic beverage manufacturers are introducing ready-to-mix hybrid drinks to cater to changing consumer tastes. These beverages, such as Kahlua midnight, ultimate tune, and Malibu red, combine flavors from different drinks, resulting in popular libations like rum and Kahlua, vodka and sparkling wine, and tequila.

Restraint

The market is not growing since non-alcoholic beverages are becoming more popular. Vendors also need to put a sizeable sum of money and resources into their new ventures in the alcoholic beverage sector as well as get the necessary government licences. As a result, each of the aforementioned elements may take a long time to process, which would further restrict the market's expansion for alcoholic beverages. Furthermore, throughout the projection period, market expansion would be constrained by consumers' growing health concern.

Alcoholic Beverages Market Segment Analysis

In 2020, the beer category held the largest global market share for alcoholic drinks due to the increasing demand for low- and no-alcohol beers. The craft beer movement has significantly impacted the global alcoholic beverage sector. Distilled spirits generated over one-third of all alcoholic beverage income, driven by the rise in super-premium and premium whisky consumption and consumer preference shifting from beer to distilled spirits like vodka and rum. This category is expected to deliver consistent demand and return on investments, contributing significantly to market expansion. 

The market is being influenced by premiumization.         

Consumers today have more sophisticated tastes and are seeking unique, top-notch alcoholic drinks. In 2021, 21.7 million 9-liter cases of premium whisky and 21.1 million 9-liter cases of premium vodka were drank, with growth rates of 14.1% and 13.9%, respectively. The demand for premium alcoholic drinks is rising due to rising health concerns and the development of functional beverages made from organic components and foreign substances. The growth of these beverages is a result of the growing health consciousness among consumers.

Competitive Landscape of the Alcoholic Beverages Market Analysis

• Anheuser-Busch InBev
• Heineken Holding NV
• Diageo
• Bacardi Limited
• Constellation Brands Inc.

New Developments

August 24, 2023 AB InBev eyes growth and expansion in categories beyond beer

Belgium-based spirits company Anheuser-Busch InBev, popularly known for its beer brands Budweiser and Corona, plans to expand the market presence of its gin, rum, whiskey, and non-alcoholic product categories, while it continues to have a strong hold on in the beer market, according to Kartikeya Sharma, President - India, AB InBev.

The company with popular beer brands such as Budweiser, Hoegaarden, and Corona has outperformed industry growth. “While the beer industry grew 20 per cent in H1 23, our growth outpaced the industry by around 50 percent, thus hitting around 30 per cent growth(sic),” said Sharma.

In January 2022, Constellation Brands, Inc., a significant manufacturer of alcoholic beverages, inked a brand permission agreement with The Coca-Cola Company to introduce the FRESCA® brand into beverage alcohol in the United States.

December 6, 2021 The Bacardi Cocktail Trends Report, produced by Bacardi Limited, reveals major trends affecting the cocktail industry in 2022. The report, in partnership with The Future Laboratory, uses data from Bacardi-led and external studies to reveal underlying trends affecting drink preferences, flavor expectations, cocktail-making techniques, and ethical behavior.

Regional Analysis

North America dominates the world alcoholic drink market with over 32.2% revenue share in 2021 due to increased demand for polished malt scotch whisky in the US and Canada. Market expansion is expected due to American preference for traditional brands like Burgasko, Bergen bier, and Arnold Palmer Spiked Half & Half, and private sector investment in Canada.

The Asia Pacific Alcoholic Beverages market is expected to experience a double-digit CAGR due to growing demand from China and India for agave-based spirits. India's increasing usage of regional alcoholic drinks, such as black label and VAT69, is boosting market growth. China, with its growing popularity of beer, gin, and tequila, is expected to witness the fastest growth.

Europe's alcoholic drink market is expected to grow at the second-fastest CAGR, with key players like Anheuser-Busch InBev, Diageo Plc, and Carlsberg employing various marketing strategies to stay competitive.

Key Market Segments

• Product Type
  • Beer, Distilled Spirits, Wine, others
  • Packaging
  • Plastic Bottles, Glass Bottles, Tins
• Distribution Channel
  • Modern Trade, Convenience Stores, Specialty Stores, Online Retailers, Hotels/Restaurants/Bars, Commercial Stores, On Premises, Liquor Stores, Grocery Shops, Internet Retailing, Supermarkets

The above information has been provided for the following regions and countries:

North America

• U.S.
• Canada

Europe

• UK
• Germany
• France
• Italy
• Russia

Asia Pacific

• China
• India
• Japan
• South Korea

Latin America

• Brazil
• Mexico

MEA

• UAE
• Saudi Arabia
• South Africa

Frequently Asked Questions

What is the expected growth rate of the Alcoholic Beverages market over the next 7 years?

Alcoholic Beverages Market is estimated to increase at a CAGR of 2.3% from $ 1575.78 Billion in 2023 to $ 1875.89 Billion by 2030 | Report 2023 by published by Market Report Service.

Who are the major players in the Alcoholic Beverages market and what is their market share?

Anheuser-Busch InBev,Diageo plc, Heineken Holding N.V., Molson Coors Beverage Company, Pernod Ricard SA,Carlsberg A/S, Asahi Group Holdings, Ltd., Constellation Brands, Inc., Bacardi Limited, Brown-Forman Corporation, Beam Suntory Inc., SABMiller plc (part of Anheuser-Busch InBev),Kirin Holdings Company, Limited, Accolade Wines, Treasury Wine Estates, The Wine Group,Grupo Modelo S.A. de C.V. (part of Anheuser-Busch InBev), Molson Coors Brewing Company (formerly MillerCoors LLC),Rémy Cointreau SA,William Grant & Sons Ltd., are prominent players operating and dominating in the market.

Who are the top 3 Alcoholic Beverages Market Key Vendors?

Anheuser-Busch InBev,Diageo plc, Heineken Holding N.V., Molson Coors Beverage Company, are key players in the Alcoholic Beverages market.

Which geographical areas dominate the worldwide market for Alcoholic Beverages?

North America region are emerging as the top regional markets for Alcoholic Beverages solutions.