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Monday, 14 March 2016

Alcoholic Beverage Market Will Continue to Grow Strongly Through 2021

Alcoholic beverages refer to beverages containing certain amount of alcohol. Alcoholic beverages have gained popularity among the consumers globally over the past few years. Significant rise in the global population and increasing disposable income are some of the major factors fueling the demand for alcoholic beverages globally.

The global alcoholic beverages market is expected to grow at a moderate pace during the forecast period. The growth of this industry has increased in the last few years due the good performance of all the sectors (beer, spirits and wine). Germany, U.K., France, Italy and Spain among others comprise of almost 57% of the global alcoholic beverage market.

One of the major drivers for the growth of this industry is that the consumers residing in emerging countries have significant contribution in the rise in the demand of the alcoholic beverage market because of growing population. The concept of consuming alcohol is also penetrating into the culture among the people residing in the emerging countries. Another driving factor is the strengthened distribution channels adopted by the alcoholic beverage manufacturers and purchase channels adopted by them such as online stores. In addition, increasing per capita income accompanied with increasing disposable income is also expected to boost the demand for alcoholic beverage globally.

However, there are few restraints for the alcoholic beverage industry as well. The major players are constantly competing among themselves to gain the maximum market share. This poses as threat for the entry and sustenance for any new player trying to operate in the alcoholic beverage market. Other restraints for this market include the increase in the price of raw materials, availability of substitutes (non alcoholic beverages) and rules and regulations posed by the government. Poor climatic conditions could also pose as a threat for alcoholic beverage market.


The alcoholic beverage market is segmented into beer, wine and spirits. Beer generates the maximum amount of revenue followed by spirits (whiskey, vodka and rum) and then by wine (red and white). The top six beer manufacturers have a global market share of over 50%. Each of these manufacturers are forming alliances to gain a competitive edge over others in developing countries such as India, China, Brazil among others.
By geography, the market has been segmented into North America, Europe, Asia-Pacific and Rest of the World (RoW). North America and Europe are considered as mature markets and due to this reason, the concentration of the manufacturers is shifting away from these regions. Asia Pacific is the fastest growing region for alcoholic beverages market. Due to this region, the manufacturers are focusing on penetrating the developing countries such as India, China among others.

The per capita consumption of alcoholic beverages is highest in Europe where France is in the lead followed by Germany, Spain, Italy and UK. The major players operating in this market are Diageo, Heineken, Carlsberg, Anheuser Busch InBev, Pernord Ricard, Remy Cointreau, Bacardi and SAB Miller. The large companies operating at an international level are engaged in making heavy investments in marketing and advertising strategies to ensure customer loyalty. Branded drinks include approximately 40% of the global alcoholic beverage consumption. The global alcoholic beverage industry is dominated by three leading companies comprising of almost 40% of the market share. Anheuser-Busch InBev is the market leader with 20% of the market share.


The growth of the global alcoholic beverage industry was moderate at first but the growth has become high owing to the growing consumer base for alcohol consumption, especially the young generation which is fuelled by the increasing disposable income of the consumers. The industry is expected to grow even further in the future.

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