Alcoholic Drinks Market size was valued at USD 1.79 trillion in 2024 and is set to exceed USD 6.33 trillion by 2037, expanding at over 10.2% CAGR during the forecast period i.e., between 2025-2037. In the year 2025, the industry size of alcoholic drinks is evaluated at USD 1.94 trillion.
The alcoholic drinks market is led by an increase in the inclination to consume alcoholic beverages among the younger population. According to The National Survey on Drug Use and Health (NSDUH) for 2022 states that 17.5 million young adults (50.2% of this age group) reported drinking alcohol.
Growth Drivers
Challenges
|
Base Year |
2024 |
|
Forecast Year |
2024–2037 |
|
CAGR |
10.2% |
|
Base Year Market Size (2024) |
USD 1.79 trillion |
|
Forecast Year Market Size (2037) |
USD 6.33 trillion |
|
Regional Scope |
|
Product (Beer, Spirits, Wine)
Beer segment share in the alcoholic drinks market is projected to cross 40% by the end of 2037. The segment growth can be credited to the growing demand for newer flavors of alcoholic beverages among millennials. The beer market is largely fragmented, with numerous domestic and foreign competitors vying for market share. The increasing demand for creative beer flavors among the younger population has led beer manufacturers to innovate their products. Furthermore, Southeast Asian consumers' perceptions of alcohol–based beverages, particularly beer, have been greatly impacted by the embrace of Western culture and cultural shifts.
The spirits segment is poised to grow majorly with a substantial share during the forecast timeframe. The segment is growing due to the surge in the number of distillers worldwide. The rise of social media has simplified the process for consumers to find local distilleries and hear about new spirits releases. Also, there has been a surge in the program launches for the trading of distilled spirits.
For instance, the 2024 strategy of the Distilled Spirits Council of the United States (DISCUS) highlights impending trade promotion prospects in Canada, Australia, India, the United Kingdom, and Germany for American distillers. Products distilled domestically from at least 51% of American agricultural material are eligible to participate in the USDA–funded initiative.
Retail (Food Service, Retail, Liquor Stores, Grocery Shops, Supermarkets)
Liquor stores segment is predicted to capture alcoholic drinks market share of over 34% by 2037. The segment growth is propelled by the growing number of liquor stores globally. The emerging economies' rapid urbanization will create a network of connected liquor stores. Domestic liquor stores are offering a more affordable and varied selection of alcoholic beverages, which will help drive the growth of the industry.
Market expansion will be fueled by supportive actions adopted by numerous governments worldwide to reduce the complexity of liquor licenses. For instance, in January 2024, Gov. Phil Murphy approved the bill removing food and event restrictions on brewers and allowing towns to regain some expired liquor licenses.
Our in–depth analysis of the global market includes the following segments:
|
Product |
|
|
Sales Channel |
|
APAC Market Statistics
Asia Pacific industry is likely to hold largest revenue share of 47% by 2037. The market growth in the region is also expected on account of the growing demand for premium alcohol among the population. The market is progressing due in part to the rapid urbanization and simple availability of alcoholic beverages in metropolitan areas. According to the Asian Development Bank, Asia will have a population that is over 55% urban by 2030.
China's economic growth has raised people's disposable income, which permits them to spend more on upscale products like fine wine. According to data from the National Bureau of Statistics, China's per capita disposable income was USD 1,624.57 in the first quarter of 2024, growing nominally 6.2% year over year. Globalization and the impact of Western culture have also shaped consumer tastes, with a rise in interest in imported alcoholic beverages.
In South Korea, consumers are looking for more distinctive and high–quality alcoholic beverages, like small–batch spirits and artisanal brews. The rising demand for traditional Korean alcoholic beverages is one of the major trends in the country's alcoholic drink sector. Traditional Korean alcoholic beverages like soju and makgeolli are becoming more and more well–liked among younger customers. For instance, Over the previous two years, soju consumption has climbed by 1.4%, accounting for 47.9% of the total consumption rate among those polled in May 2024.
North America Market Analysis
North America alcoholic drinks market is predicted to capture revenue share of around 26% by the end of 2037. This is owing to the growing concerns regarding health which has increased the demand for honey–based drinks in the region. Also, the growing consumption of alcohol is accelerating the market demand. For instance, 62% of American adults claim to have ever consumed alcohol, while 38% never do.
The rising demand for alcoholic beverages, especially whiskey, in the United States is influencing the market's expansion. For instance, it is anticipated that 34.9 million 9–liter cases of straight whiskey will be consumed by 2025, a more than 100% increase over the volume consumed in the late 1990s and early 2000s. Several causes, such as the emergence of craft distilleries, growing interest in mixology and cocktails, and the reputation of whiskey as a classy and premium beverage, have contributed to the surge in whiskey consumption in recent years.
It is projected that the money given by private companies in Canada to purchase high–end alcoholic beverages will accelerate industry expansion. For instance, the Molson Coors Beverage Company unveiled new capital deployment plans, a long–term financial outlook, and a new plan to accelerate growth today. The Acceleration Plan was unveiled at the company's 2023 Strategy Day in New York City. Its goal is to further the company's growth in the years to come.
Industry Players in the alcoholic beverage industry are expanding their product lines to better satisfy customer needs and diversify their offerings. Additionally, they are implementing a variety of tactics, such as joint ventures and acquisitions, to bolster their brand's visibility in international markets for alcoholic beverages.
Author Credits: Parul Atri
Copyright © 2024 Research Nester. All Rights Reserved
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?