The alcoholic beverages market revenue was valued at USD 2,313.2 billion in 2023 and is expected to grow from USD 2,527.0 billion in 2024 to USD 5,716.2 billion by 2032, reflecting a compound annual growth rate (CAGR) of 10.74% during the period from 2024 to 2032.
Alcoholic beverages are produced by fermenting sugars found in fruits, grains, berries, and other ingredients, including plant saps, milk, tubers, and honey. Distillation can be applied to increase the alcohol content by reducing the original aqueous liquid.
This information is sourced from Fortune Business Insights in their report titled "Alcoholic Beverages Market, 2024-2032."
List of Key Players Mentioned in the Report:
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)
Information Source: https://www.fortunebusinessinsights.com/alcoholic-beverages-market-107439
Segments:
Increasing the Number of Distilleries and Distilled Spirits to Hold the Largest Share and Drive the Market
The largest share of the market is held by the distilled spirits segment, driven by the increasing number of distilleries. Social media has made it easier for consumers to discover new spirits and locate local distilleries.
Beer occupies the second-largest market share. The beer industry is competitive, with numerous international and local players vying for market presence. The U.S. stands out as a major global beer exporter. Additionally, the adoption of Western culture has influenced younger generations' preferences for alcoholic beverages, particularly beer. In South Asian countries, beer is the most consumed alcoholic drink among young adults.
Food Service Segment Holds the Largest Share due to Increase in Socializing
Post-pandemic socializing and gatherings have led to an increase in alcoholic beverage consumption, significantly boosting sales in the food service sector. Many consumers, particularly young adults, are shifting their preferences from beer to brown liquors such as scotch, brandy, rum, and whisky.
Report Coverage:
The report offers:
Major growth drivers, restraining factors, opportunities, and potential challenges for the market.
Comprehensive insights into regional developments.
List of major industry players.
Key strategies adopted by the market players.
Recent industry developments include product launches, partnerships, mergers, and acquisitions.
Drivers and Restraints:
Growing Number of Breweries and Wineries among Adults to Drive Market Growth
The rising demand for alcoholic beverages has resulted in a surge of micro wineries and craft artisanal alcohol producers entering the winery sector. According to the U.S. Bureau of Labor Statistics, the number of U.S. wineries exceeded 4,000 in 2016 and reached 5,024 by 2020, a fourfold increase since 2001. In 2020, there were 13,478 beverage production facilities in the U.S., with breweries and wineries representing significant portions at 38% and 37%, respectively.
However, heightened awareness of health issues and increasing health risks have made consumers more cautious, leading to a decrease in beverage demand. This trend is expected to impact market growth negatively.
Regional Insights:
Increasing Demand for Alcohol from Working Professionals to Boost Asia Pacific Market
The Asia Pacific region leads in alcoholic beverages market share. The social lives of working professionals have significantly transformed drinking and eating habits, which is a major factor driving growth in this market. Additionally, the steady demand for premium alcohol is contributing to this expansion. Rising incomes, increased purchasing power, and rapid urbanization among middle-class consumers are motivating them to explore super-premium alcohol options.
In response to this growing market, alcoholic beverage producers in Asia Pacific, such as Asahi Group and Suntory Holdings Limited, are actively pursuing mergers, acquisitions, expansions, and product launches to enhance their market positions.
Competitive Landscape:
Market Players Focus on New Product Launches to Strengthen Market Position
Leading companies in the market are vying to increase their market share by offering sector-specific solutions. These players strategically collaborate with or acquire local competitors to establish a strong regional presence. They focus on developing innovative products and implementing effective marketing strategies to capture a larger portion of the market. Additionally, the rising volume of international trade is expected to create lucrative opportunities for market participants.
Key Industry Development:
- November 2022: Diageo acquired Balcones Distilling, a noteworthy Texas craft and premium whisky distiller. This acquisition aims to gain high-growth brands in fast-growing segments such as super-premium whiskey.