Alcoholic beverages such as beer, wine, and spirits are consumed widely across the world for celebration, social gatherings, relaxation, and leisure purposes. Beer is one of the most popular alcoholic beverages and is produced using malted barley, hops, yeast, and water. Wine is produced through fermentation of grape juice and comes in various varieties based on the type of grape used. Spirits are alcoholic beverages produced through distillation of fermented fruits, grains, vegetables, or sugar cane. The global alcoholic beverages market offers a variety of products to suit different palates and occasions. Alcoholic beverages provide certain health benefits in moderation such as reducing risk of heart disease and diabetes. However, excessive consumption can cause health issues.
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 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the global alcoholic beverages market is the rising popularity and consumption of premium and super-premium brands. There is growing preference for high-quality drinks with distinctive taste, aromas, and finishes. Premium brands invest heavily in improving craftsmanship and provenance to appeal to increasingly discerning consumers. They also focus on sustainability, organic production methods, and limited editions which command higher price points. The premium segment allows companies to achieve better margins. Thus, prominent players are expanding their premium portfolios which is driving the overall market revenue growth. Additionally, the thriving cocktail culture worldwide is another significant trend boosting specific premium spirits demand.
- Threat of new entrants: The alcoholic beverages market faces moderate threat from new entrants given the requirement of significant investments and presence of established brands. However, prospect of expanding product portfolio and targeting new segments provides opportunities.
- Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and established supply chains of major players. Product differentiation and brand loyalty, to an extent, reduce impact of buyer power.
- Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of alternatives and lack of dependency on few suppliers. Input supply is primarily agricultural commodities like grapes, grains facing global supply fluctuations.
- Threat of new substitutes: Threat from substitutes is moderate as non-alcoholic beverages provide alternatives. However, social drinking habits and occasion-specific demand continue to support alcoholic beverages consumption.
- Competitive rivalry: Intense competition exists among top players characterized by frequent new product launches, mergers & acquisitions, and geographical expansions to gain market share. Entry barriers also contribute to high rivalry.
The global Alcoholic Beverages market is expected to witness high growth. 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 to 2030.
Regional analysis comprises the market in North America dominates currently owing to rising socializing and on-premise consumption habits. Europe is the second largest market led by countries like Germany, UK, France, and Italy. Asia Pacific is expected to witness fastest growth led by China, India with changing attitudes and rising disposable incomes.
Key players operating in the Alcoholic Beverages are Anheuser-Busch Inbev (BUD) (Belgium), Asahi Group (Japan), Bacardi (Bermuda), Brown Forman (U.S.), Carlsberg (Denmark). Anheuser-Busch Inbev dominates globally with flagship Budweiser brand and leadership across Americas and Europe. Asahi group leads Japanese market and expanding internationally. Bacardi leads rum category across geographies. Brown Forman dominates American whiskey category with brands like Jack Daniel’s and Woodford Reserve. Carlsberg is among top five globally led by European markets.