According to a recent report by Straits Research titled “Alcoholic Beverages Market: Information by Distribution Channels, Type, and Regions-Forecast Till 2031,” the global alcohol category was valued at US$1.6 trillion in 2022 and is projected to grow at a compound annual growth rate (CAGR) of 2.5% to reach US$2 trillion by 2031.
The report attributes this anticipated growth to increasing demand and a rise in the young adult population. The alcohol market is currently thriving due to innovations and advancements in the production of vodka, cocktails, flavored wine, and beer. Spirits have emerged as the second most dominant category, following beer.
The industry has also benefited from the growing trend of socializing and mid-week/weekend gatherings among young and working professionals. In urban areas, higher disposable incomes, late-night socializing, and high-pressure jobs have contributed to increased alcohol consumption.
The report suggests that non-alcoholic and energy drinks pose a potential threat to alcohol brands as consumers’ perception of health influences their purchasing decisions.
Partnerships between retailers and key players in the global alcoholic drinks industry have played a significant role in driving alcohol purchases in the supermarket segment.
While America was identified as the fastest-growing market, Europe was recognized as the largest market. Eurostat data revealed that over one-third of Europeans aged 15 and above consume alcohol at least once a week. The UK showed a higher demand for alcohol, with 45% of respondents reporting weekly consumption, compared to 41% in Ireland and Luxembourg, and 40% in Germany and Denmark.
In North America, product innovation is a key factor driving market expansion for the alcohol segment. The report also predicts a 3.2% growth in whisky consumption by 2031 in the US.
The Asia Pacific region is experiencing a rapid increase in demand for alcoholic beverages due to changing lifestyles, greater disposable income, and a relatively young population.
Furthermore, the duty-free retail segment is expected to contribute significantly to the growth of the alcohol market in Africa. In Latin America, Mexico and Brazil are identified as leading consumers of alcohol.
The report also highlights the top 20 alcoholic beverage manufacturers, including Halewood at number four, Bacardi at number five, and Pernod Ricard at number eight.
Earlier this year, another research firm reported that the ready-to-drink category is expected to see a year-on-year growth of 11.43% in 2023.