Global Alcoholic Beverage Market Report Analysis – Drivers, Restrainers, and Forecast

Posted by Afzal Shamim on August 9th, 2022

Alcoholic drinks are fermented from the sugars in fruits, berries, grains, and other components such as plant saps, tubers, honey, and milk, and can then be distilled to transform the original watery liquid into a liquid with considerably higher alcoholic strength. Beer is the most well-known alcoholic beverage in the malt family, which also includes ale, stout, porter, and malt liquor. Malt, maize, rice, and hops are used to make it. Beers range in alcoholic content from around 2% to about 8%. Wine is produced by fermenting grape juice or the juices of other fruits such as apples (cider), cherries, berries, or plums. The harvest of the fruit, the juice of which is fermented in enormous vats under strict temperature control, is the first step in the winemaking process. When the fermentation process is finished, the mixture is filtered, aged, and bottled. Natural, or unfortified, grape wines range in alcohol content from 8 to 14 percent; examples include Bordeaux, Burgundy, Chianti, and Sauterne. Sherry, port, and muscatel are examples of fortified wines, which have been fortified with alcohol or brandy and contain 18 to 21 percent alcohol.

Market Prospect

The global alcoholic beverage market size is anticipated to reach USD 1,642.5 billion by 2020 growing at a CAGR of 2.7% during the forecasting period, 2020-2028.

In the United States, the beverage market is worth 202 billion liters of liquid. 16.5 percent of total beverage volume is accounted for by alcohol. Malt beverages make for more than 80% of the alcoholic beverage market, while wine and spirits account for the remaining 20%. Distilled spirits account for around 7% of all alcoholic beverage sales. Vodka is the most popular spirit subcategory, accounting for 34% of all cases sold, followed by whiskey (24%), and different specialty spirits (12 percent). Wine accounts for around 11% of the alcoholic beverage market. Domestically produced wines account for 71% of cases sold, with imported wines accounting for 19%. Champagnes and sparkling wines make up around 7% of total wine volume. According to a report by Distilled Spirits Council, spirit industry generates 0 billion in U.S. economic activity annually.

Europe is a significant producer and consumer of alcoholic beverages across the world. According to the WHO, an average of 170 grams of alcohol per capita was consumed in Europe per week in 2016. Men drink 18.3 liters of pure alcohol each week, while women drink 4.7 liters. Approximately 72% of the population reported having consumed alcohol in the preceding year. According to the World Health Organization's most current European health report, individuals in the European Union consume more alcohol than any other area in the world, with an annual consumption of 8.71 liters, or about 25 beer-sized glasses of pure alcohol, per person.

According to the World Health Organization, Czech citizens consumed the most alcohol per capita in 2019, with individuals consuming around 14.26 liters of pure alcohol. Latvia comes in second and Moldova comes in third, with 13.19 and 12.85 points, respectively.

Beer is the world's most popular alcoholic beverage. Asia-Pacific is expected to dominate the market throughout the forecast period. The market analysis revealed an increase in internet retailing. China will be the largest alcoholic beverage market.

Market Drivers

Because of a growth in the global young-adult demographic, disposable income, and consumer desire for premium/super premium items, the global alcoholic beverages business is rising. Furthermore, new developments in honey-derived products appear to be a viable option for manufacturing distinctive alcoholic drinks for clients and fueling the market's future growth. In recent years, the foodservice business has seen massive sales, with premium alcoholic drinks, particularly premium wine and whiskey, accounting for a sizable portion of those sales.

Luxury brands increased by 37% in the first quarter of 2022 compared to the same quarter in 2021, according to the Luxury Brand Index (LBI), a tool developed by the Distilled Spirits Council of the United States (DISCUS) to analyze sales of spirits brands by volume at the top end of the distilled spirits market.

However, market expansion is expected to be limited in the near future due to the high cost of premium/super premium goods, as well as the escalation of the nonalcoholic beverage industry due to rising health concerns.

The COVID-19 outbreak caused major disruption in the alcoholic beverages business due to the closure of specialized stores, taverns, bars, and restaurants. When lockdown limitations were relaxed in mid-2020, retailers gained confidence. At the same time, some countries saw significant price rises, owing mostly to government regulations and taxes, which had a small influence on the market under consideration.