July 12, 2024
Alcoholic beverages Market

Alcoholic Beverages Market is Estimated To Witness High Growth Owing To Rising Social Drinking Culture Trend

The Alcoholic Beverages Market is estimated to be valued at US$ 1,561.99 Bn in 2022 and is expected to exhibit a CAGR of 3.00% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Alcoholic beverages are drinks containing ethyl alcohol. Common types include beer, wine, and distilled spirits. They are widely consumed for pleasure or socializing rather than nutrition. Alcoholic beverages offer sensory satisfaction and are part of social and cultural traditions. However, heavy consumption can lead to health and social problems.

Market key trends:
One of the key drivers for the market growth is the rising trend of social drinking culture. The younger population has become more aware of new product launches and taste innovations in alcoholic beverages. They enjoy socializing over drinks and experiencing new flavors. Beer and craft spirits that cater to this changing preference have gained popularity. Manufacturers focus on novel flavors, unique packaging, and premiumization to attract new customers. The growth of bars, pubs, and nightclubs supports this trend by providing venues for social drinking. Novel promotion strategies on digital media by companies further amplify this cultural influence.

Porter’s Analysis

Threat of new entrants: The alcoholic beverages market has moderate threat of new entrants as production facilities require large capital investments and established distribution networks. Market is dominated by few major players.

Bargaining power of buyers: Buyers have moderate to low bargaining power as buyers have limited choices of brands for core categories of beer and spirits. However, some buyers have high bargaining power for craft beers and wines segments.

Bargaining power of suppliers: Suppliers have moderate bargaining power as raw materials used in production are commoditized. However, suppliers of specialty ingredients have some pricing power.

Threat of new substitutes: Threat of new substitutes is low to moderate as the market has well established products across categories with strong brand recall and consumer familiarity. However, craft beer segment offers new variants to replace mainstream beers.

Competitive rivalry: Highly competitive due to presence of global players operating across markets.

SWOT Analysis

Strengths: Strong brand portfolio, global distribution networks, economies of scale in production and marketing.

Weaknesses: Rising input costs, stringent regulations, high reliance on few core categories.

Opportunities: Growth in emerging markets, premiumization trend, expansion of flavored and RTD options.

Threats: Changing consumer preferences, health consciousness, strict laws on alcohol advertising.

Key Takeaways

The Global Alcoholic Beverages Market Demand is expected to reach US$ 2,148.87 billion by 2030, exhibiting a CAGR of 3% over the forecast period. Growth in urbanization, socializing culture and increasing spending power are driving higher alcohol consumption in emerging economies. Changing lifestyles and experimentation are encouraging premium options across beer, spirits and wine categories.

The Asia Pacific region dominates the global market with 35% revenue share in 2022. China and India represent exponentially rising demands due to growing middle-class population, exposure to Western cultures and increasing socialization in pubs, bars and clubs. South East Asian countries are also anticipated to progress rapidly through 2030.

Key players operating in the alcoholic beverages market are Anheuser-Busch InBev SA/NV, Bacardi Limited, Beam Suntory Inc., Constellation Brands Inc., Diageo Plc, Heineken Holding NV, Molson Coors Brewing Co., Pernod Ricard SA, SABMiller Ltd., and Carlsberg group. Major players are focusing on innovations, expansions and strategic alliances to strengthen their market position.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it