The increasung number of young adults is likely to be a major factor driving the growth of the alcoholic beverages market during the forecast period. The increased demand for premium / super-premium products will move the alcoholic beverages industry forward. Moreover, the increased awareness of the negative effects of low alcohol intake is expected to cushion the expansion of the alcoholic beverages industry. However, the rising cost of premium / super premium goods is expected to hamper the expansion of the alcoholic drinks market throughout the forecast period. Furthermore, the outline of robust breweries and spirits will create additional potential prospects for the alcoholic drinks market to flourish in the next years.
The global lockdowns imposed by governments due to the coronavirus disease outbreak (COVID-19) have severely restricted the global market for alcoholic beverages in 2020. This has disrupted supply chains and reduced consumption. A viral illness called COVID-19 causes flu-like symptoms like fever, coughing, and breathing difficulties. The availability of raw materials from domestic and foreign vendors is a necessity for food and beverage producers. Manufacturers were forced to suspend production due to a shortage of raw materials as several governments imposed restrictions on international and domestic trade in goods. The drop was also influenced by trade restrictions on non-essential items and concerns about contamination from manufacturing sites.
Rising Interest in Craft Alcoholic Beverages to Boost Market
Customers are becoming more accustomed to the craft alcoholic beverage market. The market offers a wide range of craft beer flavors. Well-known breweries will likely devise plans to introduce their craft beer line or buy out rivals' labels or brands. They will now have access to various marketing strategies and small brewers' distribution networks. Similarly, the craft spirits, craft liquor, craft cocktail, and craft cider markets are also growing. The young female consumer group is where craft ciders are most popular. Craft spirits are becoming increasingly popular as consumers, particularly Gen-X and Millennial age groups, demand newer flavors and varieties. The market is growing as a result of such factors.
Prevalence of Fake Goods Could Limit Market Expansion
The booming market for fake alcoholic beverages poses a continuing threat to the alcoholic beverage sector. Such products significantly negatively impact consumer health and cause significant financial losses for producers worldwide. These products have packaging and labels that resemble the originals. One of the most frequently imitated spirits is vodka. Numerous homebrewed rice wines sold illegally in China have slowed the expansion of the organized wine sector. To prevent the emergence of fake alcoholic beverages, which could slow the market's expansion throughout the projection period, it is crucial to take action.
Based on type, the alcoholic beverages market is segmented into beer, distilled spirits, wine, and others. The beer category dominated the market in 2021. The category includes a wide range of ales, German-style altbiers, and ordinary bitter special types of beer. The increasing popularity of California-style beer is expected to drive market growth in the coming years. Besides, the wine segment is expected to develop the fastest during the forecast period. Wine provides antioxidants to promote longevity, a major factor driving segment growth. Wine can also help protect against harmful inflammation and heart disease, promoting health.
By Distribution Channel
By distribution channel, the market is segmented into convenience stores, on-premises, liquor stores, grocery shops, internet retailing, and supermarkets. The liquor stores category dominated the market in 2021. Rapid urbanization in emerging economies will create an interconnected network of booze retailers. The growing trend of consumers adopting Western culture is predicted to fuel the expansion of the alcoholic beverage market. Besides, the internet retailing segment is expected to develop the fastest during the forecast period. This can be attributed to providers' greater attention to innovative e-commerce trade technologies. Internet commerce offers liquor delivery to your door.
North America is projected to hold the largest share of the alcoholic beverages market over the forecast period because of the increase in the number of young adults. Furthermore, rising consumption of high-quality alcoholic beverages will drive the region's alcoholic beverages market growth during the forecast period. The growing trend in the United States to adopt classic alcoholic beverage brands such as Arnold Palmer Spiked Half & Half, Bergenbier, and Burgasko will aid market growth. Furthermore, private sector funding in Canada to acquire premium alcoholic beverages is expected to boost the market growth.
On the other hand, the Asia Pacific alcoholic beverages market is anticipated to grow significantly over the forecast period because of increased disposable income. Furthermore, the advancing countries are expected to drive the region's alcoholic beverage market growth in the coming years. The growing trend in India of drinking local spirits such as black label, VAT69, and McDowell's whiskey is driving the market growth. The increasing popularity of beer, gin, and tequila flavors in China is expected to grow fastest during the forecast period.
LIST OF KEY COMPANIES PROFILED:
- ANHEUSER-BUSCH INBEV
- BACARDI LIMITED
- CARLSBERG GROUP
- CONSTELLATION BRANDS, INC
- DIAGEO PLC
- HEINEKEN HOLDING NV. (HEINEKEN N.V.)
- MOLSON COORS BREWING COMPANY
- PERNOD RICARD SA
- SUNTORY HOLDINGS LTD. (BEAM SUNTORY INC.)
- UNITED SPIRITS LIMITED
KEY INDUSTRY DEVELOPMENTS:
- February 2022: Blue Moon Brewing Company will introduce LightSky Tropical Wheat to its Blue Moon LightSky, a light beer with citrus flavoring, today. After LightSky Citrus Wheat debuted in the market in 2020 and is already among the top craft beer brands, Tropical Wheat is the second product in the growing Blue Moon LightSky series.
- June 2020: Asahi officially took over Australia's largest breweries, Carlton and United Breweries. With the inclusion of Australia's most popular and widely liked beer brands, the acquisition of Asahi and Carlton and United Breweries will now provide Asahi Beverages' customers with a selection of delicious tasting beverages.
|Unit||Revenue (USD Million) and Volume (Kilo Tons)|
|Segmentation||By Type, By Distribution Channel and By Geography|
|By Distribution Channel||