February 26, 2024

Increasing Demand For Premium Drinks To Fuel Growth In The Alcoholic Beverages Market

Alcoholic beverages are consumable liquor products containing ethanol. They include beer, wine, rum, whiskey, vodka, and other spirits. The demand for such products is increasing globally due to changing lifestyles and socializing culture. People consume alcoholic drinks during festivities, parties, and other social gatherings. Countries with a significant drinking culture like the UK, Japan, and the U.S. represent major markets. Premium brands offering different flavors and varieties are gaining popularity among young consumers.

The global Alcoholic Beverages Market is estimated to be valued at US$ 1,769.41 Bn or Mn 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 key trends:
One of the key trends in the alcoholic beverages market is the rising demand for premium and super-premium brands. Young consumers nowadays prefer quality over quantity and are willing to pay more for premium offerings. They look for unique tasting experiences beyond the regular brands. This has encouraged companies to launch premium product extensions of beer, wine, and spirits. Another major trend is the growing popularity of mixed drinks and cocktails. Innovative flavors coupled with trendy recipes are attracting the younger demographic worldwide. Ready-to-drink (RTD) cocktails have emerged as a major segment due to convenience. Companies are investing in novel packaging and flavors to make lucrative RTD products.

Porter’s Analysis
Threat of new entrants: The alcoholic beverages market faces low threat from new entrants due to high set up and production costs. Established players have strong brand identity and distribution network.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and price sensitivity. They can negotiate on pricing and contracts with suppliers.
Bargaining power of suppliers: Few large suppliers and fragmented growing market gives suppliers moderate power. They can influence prices but established players can source from multiple regions to reduce reliance.
Threat of new substitutes: Non-alcoholic beverages are growing substitutes but differ significantly in taste/experience. Demand is relatively inelastic to price rise.
Competitive rivalry: Intense competition exists among major players to gain market share. Companies differentiate through branding, marketing, and expansion into new geographies/categories.

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 disposable income and changing social drinking patterns. Asia Pacific region is expected to grow at the highest CAGR during the forecast period, owing to rising young population, growing urbanization, and increasing socializing occasions.

Regional analysis: North America leads with around 25% share due to developed economies and established culture of alcohol consumption. Europe follows due to increasing experimentation with flavored spirits and new product innovations. Asia Pacific is the fastest growing region on account of growing middle class population in China, India and Southeast Asian countries which are adopting western drinking habits.

Key players: 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). Players are focused on expanding into new markets by acquiring regional brands and developing new product lines catering to local preferences.

*Note:

1.Source: Coherent Market Insights, Public sources, Desk research

2.We have leveraged AI tools to mine information and compile it