April 21, 2024

Alcoholic Beverages Market is Estimated to Witness High Growth Owing to Rising Disposable Income

The alcoholic beverages market consists of manufacturing and sales of various alcoholic drinks such as beer, wine, spirits and others. These beverages provide mood-enhancing effects and are consumed during social gatherings and celebrations. Alcoholic beverages act as stress busters and offer health benefits in moderate consumption. However, excessive intake can lead to health issues.

The global alcoholic beverages industry is estimated to be valued at US$ 1,769.41 Bn in 2023 and is expected to exhibit a CAGR of 2.5% over the forecast period 2023-2030.

Key Takeaways

Key players operating in the alcoholic beverages are 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). Key players are focusing on new product launches, mergers and acquisitions to expand their market share. Growing disposable income and changing consumer lifestyle and tastes are creating new opportunities for premium and craft alcoholic beverages. Companies are expanding to emerging countries in Asia Pacific and Latin America owing to rising middle-class population.

Market Drivers

Rising disposable income is one of the key drivers of the alcoholic beverages market. As income levels increase, consumers have more to spend on luxury items like premium alcoholic drinks. Growing socialization and partying culture is also boosting the demand. Changing demographic profile and increasing young population are further propelling the market growth. Product innovation through new flavors, blends, packaging and marketing is attracting many new customers. Events like concerts, sports and festivals generate spikes in consumption. Health benefits of moderate alcohol intake are positively impacting the industry.

PEST Analysis

  • Political: Regulations around alcohol consumption and drunk driving laws affect the market. Stricter laws can negatively impact sales while more lenient laws can boost them.
  • Economic: A strong economy with high consumer spending tends to benefit the market. However, economic downturns could reduce consumption as buyers spend less on leisure.
  • Social: Social trends around health consciousness and binge drinking impact preferences. Moderation is a growing trend while negative views on excessive alcohol intake act as a restraint.
  • Technological: Innovation in packaging and new product development sustain interest. Technologies for production efficiency and virtual branding widen reach.

North America remains a dominant market for alcoholic beverages in terms of value, accounting for over 30% share. The U.S. is the single largest consumer market globally. Developed markets of Western Europe are also significant revenue generators led by countries like Germany, France, UK and Italy.

The Asia Pacific region is experiencing the fastest market growth and is expected to surpass Europe in the forecast period. Rapid economic development, rising disposable incomes, growing social acceptance and shift in cultural norms are driving consumption in developing Asian countries such as China, India and others. Countries like South Korea and Japan already have mature alcohol industries contributing to regional expansion.