01 Jun 2020
The global Alcohol Beverages Market is valued at USD 1504.88 Billion in 2018 And Expected to Reach USD 1945.93 Billion by 2025 with the CAGR of 3.74% over the forecast period.
Global Alcohol Industry Scope:
The alcohol industry can be defined in the term which is usually used to refer to corporations involved in the production of alcoholic beverages. The alcoholic beverage industry includes producers, wholesalers, distributors and hospitality providers such as hotels or cafes that serve alcohol. Its production and distribution channel are associated with agriculture, trucking, capital goods manufacturing and packaging industries. The industry consists of all the companies that contribute in the alcohol value chain and participate to bring alcohol to consumers. Basically these companies come under five categories such as raw materials suppliers, producers, distributors & wholesalers, vendors and suppliers. Alcohol producers make alcohol by managing processes such as brewing, distillation, and bottling. Raw materials for the alcohol industry are supplied by a set of farmers, who are producing different crops such as barley or grapes.
Global Alcohol Dynamics:
High disposable income, rising production and sales of alcohol, upsurge in alcohol delivery platforms coupled with consumer’s high purchasing power and increasing consumption of beer are some major factors contributed to an increasing demand of the global alcohol market. In alcohol beverage industry, beer is the most popular alcoholic beverage in the world. In point of fact, after water and tea consumption, beer is the most commonly consumed drink around the world. For example; in 2016, the annual global average alcohol consumption was around 6.4 liters per person aged less than 15. Worldwide, it is surveyed that the total volume of alcohol consumed per year grew by around 70% between 1990 and 2017 starting from 20,769 million liters per year to 35,452 million liters yearly.
Alcohol consumption across North Africa and the Middle East is relatively low, while alcohol intake across Europe is highest at about 14 liters per person annually. Despite of this, excessive drinking can cause alcohol poisoning, hospitalization, car accidents, and severe injuries. For example; According to the Centers for Disease Control and Prevention (CDC), 1 out of 6 American adults binge drinks about four times per month.
Premium range of alcoholic beverages hold significant share in alcohol consumption around the worldwide. For example; branded alcoholic beverages are recorded nearly 38% of alcohol consumption globally. As alcohol industry of these beverages tends to be large multi national corporations depend on superior marketing for competitive advantages. According to the WHO's Global Status Report on Alcohol and Health, reported that around 49.13% of total recorded alcohol is consumed in the form of spirits. Beer is the second most consumed alcoholic drink in alcohol beverage industry. Nearly 35% of total recorded alcohol is consumed in the form of beer followed by wine that is only 8% out of the total alcohol consumption.
Anheuser-Busch invested USD 100 million in hard seltzer, a new drink craze.
On Nov 16 2019; Anheuser-Busch is the king of beers and remains dominant, leading nearly 41% of the USD 119 billion U.S. market for beer and malt-based beverages. Anheuser-Busch is increasing its position in the fast-growing hard seltzer market with the launch next year of Bud Light Seltzer and has panned to invest around USD 100 million for the booming alcoholic drink category. Bud Light Seltzer will come in four fruit flavors containing 5% alcohol by volume, around 100 calories, 2 grams of carbs and less than 1 gram of sugar and likeable ingredients among the young non-beer drinkers who can’t seem to get enough of the spiked bubbling waters.
Molson Coors moved to beer with hard coffee launch:
On Dec 3, 2019; Molson Coors planned to launch hard coffee launch. This hard coffee contains around 4.2% alcohol by volume, which is less than the light beer and comes in black and vanilla flavor. This beverage came in the market by a partnership between the Philadelphia-based La Colombe and Molson Coors. The company is taking things carefully with its latest product partnership by testing it out initially in only a few markets, where hard coffee is a small portion of the alcohol segment.
Top Trends Shaping the Future of Alcohol Industry:
Canned wine is becoming more popular in recent years and turned out to be next trend. According to the 2019 State of the Industry Survey, canned wine has achieved the fourth-highest response by means of retailers always wanted to expand its shelf space for. Cans are much lighter and more portable than glass counterparts and also easier to transport on hikes and outdoor activities. It can go places that glass cannot like pools, parks and beaches, due to which all these facts to continue growth ahead for cans specifically in wine.
On the global level, the tequila market has been growing by around 22% since 2014 as a premium alcohol segment. Growth of the tequila category in alcohol beverage industry is rapidly growing on account of a premiumisation. For example; according to the Beverage Information and Insights Group, the tequila category was increased by around 7.9% in 2018 in the U.S. totaling 18.64 million 9-liter cases. Over the past few years, tequila alcohol category has shifted from the traditional frozen margarita to luxury tequila offerings served in the form of artisan cocktails, according to the Distilled Spirits Council.
In the U.S. tequila volumes have grown an annual rate of around 5.36 %, where this growth is primarily driven by the rise of high-end and super premium tequila. The premium and ultra-premium tequila market are among the fastest growing segments of the U.S. alcohol beverage and spirits industry.
Cannabis acceptance and consumption grows, thus alcohol beverage industry are debuting the ingredient in their beverage products. Cannabis is the most popular ingredient gaining exposure. Cannabis beer is prepared with stem, crushed stocks and roots of the marijuana plant rather than being infused with Cannabis oils. CBD is non-psychoactive ingredient and is now gaining recognition for its potential health benefits to be reducing symptoms of anxiety, insomnia and seizures caused by epilepsy. Many alcohol beverage companies have already started making the beverage products with cannabis.
Many people incline to drink less alcohol, beer and cider brands couples with lower alcohol content will setback supermarket shelves in the coming years. According to Mintel trends, for alcohol beverage industry players will make beer and cider would have new growth opportunities if they highly invest in innovative flavors, organic ingredients and healthier recipes. For example; the label Briska launched a cider with high fruit juice content in Sweden with a unique taste combination of mango and apple. According to a latest report reported that low alcohol content trend is driven by young adults drinking less alcohol or highly switching to low-alcohol substitutes.