June 16, 2024

Impact of COVID-19 on the Alcoholic Beverages Market: Adaptation and Recovery Strategies

The Global Alcoholic Beverages Market is Estimated to Witness Lucrative Growth Due to Increased Socialization Trends

Alcoholic beverages such as beer, wine and spirits have widespread global consumption. Beer offers refreshment and flavor, while wine is preferred due to its variety and taste. Spirits deliverbold flavors and higher alcohol content. The growing socialization trend has increased the occasions of alcohol consumption such as parties, celebrations and get-togethers.

The Global Alcoholic Beverages Market is estimated to be valued at US$ 1,769.41 Bn in 2024 and is expected to exhibit a CAGR of 2.5% over the forecast period 2023 to 2030.

Key Takeaways

Key players operating in the Alcoholic Beverages market 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). The major players are involved in new product launches to cater to the evolving consumer preferences. They are also expanding their production facilities to strengthen their market presence.

The key opportunities in the market include rising disposable incomes in developing countries, innovative product launches catering to new segments and growing online sales. Premium and luxury variants of beer, wine and spirits are gaining traction.

Technological advancements such as blockchain technologies for supply chain management, IoT solutions for efficient operations and analytics for sales and marketing are being increasingly adopted by players. This is improving efficiency, enhancing quality standards and aiding strategic decision making.

Market Drivers

The growth in socialization and outdoor consumption occasions has increased the demand for alcoholic beverages globally. Changing lifestyles, rising purchasing power and growing acceptability of alcohol among women are expected to propel the market forward. Innovative products, novel flavors and customized blends as per regional tastes are expanding the appeal of alcohol. Furthermore, increasing online sales, flourishing organized retail and ease of access will continue to drive the alcoholic beverages industry over the forecast period.

Current challenges in the Alcoholic Beverages Market
The alcoholic beverages market is facing a few pressing challenges currently. With rising health consciousness, more people are reducing or cutting down on alcohol consumption altogether. This is posing a threat to the volumes sold by producers. Stringent regulations around marketing and promotions have also made it difficult for companies to reach new customers and drive trial. Moreover, the changing demographic profile with more young adults preferring other social activities is negatively impacting social drinking occasions. Taxation policies across countries keep changing frequently, adding to the regulatory burden on companies. Managing sustainability across the supply chain is another key area that requires more focus and investment due to increasing environmental expectations.

SWOT Analysis
Strength: Well established brands and global supply chains of top players; Innovation in new product variants is expanding offerings
Weakness: Regulations around marketing and underage drinking reduce customer acquisition potential; Heavy tax burden and input costs squeeze margins
Opportunity: Emerging markets in Asia Pacific provide new avenues for growth; Premiumization trend allows premium products to charge higher prices
Threats: Intense competition from local as well as other alcoholic and non-alcoholic drinks; Alternative social activities reduce dependency on alcoholic socializing

Geographical Regions
In terms of value, the largest share of the global alcoholic beverages market is concentrated in North America. Mature markets in the US and Canada contribute significantly through sales of beer, spirits and wine. However, the fastest growing region for the alcoholic beverages industry is predicted to be Asia Pacific over the forecast period. Rising disposable incomes, growing middle class population and changing social norms are fueling alcohol consumption growth in developing countries like China and India.

*Note:

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