April 23, 2024

The Alcoholic Beverages Market is driving innovation with growing craft beer trends by 2030

The alcoholic beverages market includes beverages with alcohol content such as beer, wine, and spirits. Beer is one of the most widely consumed alcoholic beverages, brewed from cereal grains such as barley, wheat, and other grains. Beer offers health benefits such as reducing the risk of heart disease when consumed in moderation. Wine is derived from fermented grapes and provides antioxidants. Spirits contain a high concentration of alcohol and are aged or distilled.

The Global Alcoholic Beverages Market 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 in the alcoholic beverages market are focusing on innovations in craft beers to cater to changing consumer preferences. For instance, Anheuser-Busch Inbev launched several craft beers under various brand names.

The demand for alcoholic beverages is growing globally due to rising disposable incomes and socializing trends. Younger consumers are increasingly opting for premium and craft beers varieties.

Major companies are expanding globally by acquiring regional alcoholic beverage companies. For example, Asahi Group acquired Anheuser-Busch InBev’s Australian operations in 2016 to strengthen its global market position.

Market Key Trends

The trend for craft beers is growing significantly due to rising experimentation and customization among consumers. Microbreweries offer diverse styles, flavors, and limited edition seasonal craft beers. The growing craft beer segment offers opportunities for alcoholic beverage companies to drive innovation. Some of the popular styles include American IPA, Belgian Witbier, Stouts and regional brews inspired by local cultures. The demand for authentic and premium craft beers varieties is likely to shape the market positively in the forecast period.

Porter’s Analysis

  • Threat of new entrants: The alcoholic beverage industry requires high capital investment in production, marketing and distribution which makes it difficult for new players to enter this market.
  • Bargaining power of buyers: Buyers have moderate bargaining power due to the wide range of product options available from various manufacturers.
  • Bargaining power of suppliers: Suppliers of raw materials like grains, fruits and flavorings have low bargaining power since there are many substitute suppliers in the market.
  • Threat of new substitutes: Non-alcoholic beverages and other recreational drugs pose a threat of substitution.
  • Competitive rivalry: The market is intensely competitive due to presence of large global players.

Geographical Regions

North America accounts for the largest share of the global alcoholic beverages market in terms of value due to high consumption levels in countries like the United States. However, regulations around drinking are relatively strict.

The Asia Pacific region is expected to be the fastest growing market during the forecast period attributed to rising disposable incomes, increasing social acceptance of drinking and emergence of youth population as a key consumer segment in developing economies like China and India. Urbanization is also supporting market growth in the region.