Global Alcoholic Beverage Market - Growth, Trends, and Forecast (2018-2023)
The global alcoholic beverages market is expected to record a CAGR of 3.1%, during the forecast period. The market is driven by the increase in global young-adult demographic, coupled with high disposable income and consumer demand for premium/super premium products.
Premiumization Driving the Alcoholic Beverage Market
The demand for alcoholic drinks is growing at a faster rate in emerging countries, like India, China, Indonesia, and Singapore. This is driving the demand for alcoholic drinks industry. The growing demand for premium alcoholic beverages is considered to be one of the primary drivers for this market. Efforts by alcoholic beverage manufacturers for strengthening distribution channels and extension of purchase channels, such as online stores, and convenience stores, is also contributing substantially to the growth of the global alcoholic beverages market. New product launches and innovations in alcoholic drinks are favoring the growth of the industry. Companies are launching innovative products because of the changing consumer preferences. The increase in health concerns among the consumers has resulted in customers to switch to low-calorie alcoholic drinks, which has compelled vendors to introduce a variety of pre-mixed cocktails with low-calorie levels in the market.
Growing demand for non-alcoholic beverages like energy drink, RTD tea and coffee etc., owing to health concerns, is expected to restrict the market growth in future.
The major opportunity in this market is making alcoholic drinks healthier like naturally sweetened, herb infused, gluten-free alcoholic drinks. It will experience high demand from consumers in the coming years.
Beer Leading the Alcoholic Beverage Sector
Alcoholic drinks can be segmented into three categories – beer, wine, and spirits (whiskey, vodka, rum etc.). Beer is the most consumed alcoholic drink across the globe and contains around 4-7% of alcohol. Wine is the second largest segment after beer and has 6-20% of alcohol in it and spirits contain 40-80% of alcohol. Increasing demand for craft beer is also driving the beer sales. Distilled Spirits is the top investment pocket in the alcoholic beverages market, attributed to boom in premium/super premium whiskey consumption, and the demand shift from beer.
Europe Leading the Regional Front
The report is further segmented based on geography (North America, Asia–Pacific, South America, Africa) with further country wise segmentation. Europe is the largest market for alcoholic beverages. Europe has the highest per capita consumption of alcohol led by France and is followed by Germany, Italy, UK, and others. Beer represented a 40.1% share of all alcohol sales value in Germany, France, Italy, Spain, the UK, and the Netherlands. North America and Europe are the matured markets with minimal increase in market size. The spirits industry within the NAFTA (The North American Free Trade Agreement) countries had a total market value of USD 98,829.7 million in 2015.The Mexico was the fastest growing country in this region. Asia– Pacific market is growing at a rapid rate because of its increasing population and increased demand for premium and super premium alcohol. China is one of the leading markets in Asia-Pacific. APAC was the largest shareholder in the global spirits market in 2016, with China being the largest market, followed by India.