by The Growing Alcoholic Beverages Market is Powered by the Trend of Premiumization
The alcoholic beverages industry comprises distilled spirits, wine, and beer products that offer a relaxing and social experience. These beverages are produced through fermentation of grains, fruits, or vegetables and contain alcohol content between 0.5% to 60%. The global alcoholic beverages market provides immense health and social benefits but also poses health risks if consumed irresponsibly.
The Global alcoholic beverages Market is estimated to be valued at US$ 1,769.41 Bn in 2024 and is expected to exhibit a CAGR of 2.5% over the forecast period 2023 to 2030.
Innovation in tastes and premiumization have expanded the market beyond conventional beer and wine. Craft spirits featuring unique flavors like coffee, chocolate are gaining popularity. Demand for premix alcoholic beverages is also on the rise particularly among millennials and Gen Z who prefer products with low alcohol content and novel flavors.
Key Takeaways
Key players operating in the alcoholic beverages 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 players are strengthening their market presence through continuous innovation and premiumization of their brands.
The demand for alcoholic beverages is growing steadily owing to rising disposable incomes, urbanization, and socialization in developing economies. Premiumization trends where consumers opt for quality over quantity is driving the sales of high-end beverages.
The global alcoholic beverages market is also becoming more consolidated as major players expand their geographic footprint through mergers and acquisitions. Companies are eyeing high-growth emerging markets in Asia Pacific and Latin America to meet rising international demand.
Market key trends
One of the major trends shaping the alcoholic beverages industry is premiumization. Consumers today are willing to pay more for superior quality, innovative flavors, organic and sustainable ingredients. Craft beer and spirits featuring unique recipes crafted by smaller producers are gaining mainstream popularity. Products featuring premium natural ingredients with fewer additives and lower sugar content also see strong demand. Companies are differentiating their brands through superior tasting experience to attract consumers who prefer quality over quantity. This premiumization trend is expected to further propel the growth of the global alcoholic beverages market during the forecast period.
Porter’s Analysis
Threat of new entrants: new players face high costs of capital and marketing expenditures to enter this industry.
Bargaining power of buyers: buyers have moderate bargaining power due to the availability of substitutes.
Bargaining power of suppliers: suppliers of raw materials have moderate bargaining power as buyers can switch between suppliers.
Threat of new substitutes: substitute beverages pose a threat but brand loyalty provides resilience.
Competitive rivalry: intense competition exists between major players.
Geographical regions where market in terms of value is concentrated: North America and Europe currently hold the majority share of the global alcoholic beverages market in terms of value, with the U.S. and Germany accounting for the largest markets respectively. Changing lifestyles and rising disposable incomes in developing regions are driving heavy consumption of alcohol.
The fastest growing region for the market is Asia Pacific due to rising incomes, urbanization, and cultural acceptance of alcohol. Countries like China, India and Japan are witnessing high growth rates as lifestyles become more westernized. Local spirits are increasingly being replaced by imported beers, wines and spirits as preferences evolve in the developing world.
*Note:
1.Source: Coherent Market Insights, Public sources, Desk research
2.We have leveraged AI tools to mine information and compile it
