Global alcoholic drinks market to reach US$2,001 billion by 2031
The global alcoholic drinks market size is projected to reach US$2,001 billion by 2031, according to a new research report.
The report, led by market research company Straits Research, has illustrated how last year the global alcoholic drinks sector was valued at US$1,603 billion but now looks set to grow at a compound annual growth rate (CAGR) of 2.5% between 2023–2031.
According to the findings, the highest global market share for alcoholic beverages is currently held by Europe, due to “the region’s significant players and the high demand” for alcoholic drinks.
The report has also outlined how “growth in the global population of young adults and the subsequent rise in demand for alcoholic beverages are the two main factors driving the world market” for alcoholic drinks. The company added that “trade volumes will need to rise to support the expanding population” and projected that “players in the alcoholic beverage market are therefore anticipated to profit from the rising demand for alcoholic beverages as the population increases over the course of the forecast period”.
Straits Research additionally pointed out that “the growing popularity of socialising and weekend/midweek get-togethers among young and working professionals has also been advantageous for the sector”. Plus “the consumption of luxury beverages has expanded as a result of its association with sophistication and class as a result of greater urbanisation”.
The new research described how “people in emerging economies are exploring new forms of entertainment like nightclubs and hanging out in bars and lounges due to the growing urban population and increased disposable incomes”. Additionally, “sales of alcoholic beverages are driven by young individuals with wealthy families, substantial social media influence, and easy access to alcohol”.
The report explained: “Urban areas have more alcoholic beverage usage because of stressful employment and the notion that alcohol relaxes the mind”. Also it highlighted how“manufacturers of alcoholic beverages are often adding new flavours to their products” which means that “customers are intrigued to try these new products, especially millennials”.
Speaking about Europe, Straits Research, said that “it is anticipated to grow at an optimal CAGR” and observed how “more than a third of Europeans aged 15 and older, according to Eurostat, consume alcohol at least once a week”. The research company added that “the demand for alcohol is higher in the United Kingdom, where 45% of people drink once a week compared to 41% in Ireland, 40% in Germany, and 40% in Denmark”.
However, one element to note is that “Europe’s nations all have varied alcoholic preferences” said the researchers who noted how “historically, these preferences have been linked to certain geographical locations”. For instance, “drinking beer, wine, and spirits are connected with the Central European region of Europe, the Mediterranean region of Europe, and the Eastern and Northern European regions, respectively”. But “the demand for alcoholic beverages is strongest in the following European nations: Lithuania, the Czech Republic, France, Ireland, and Belarus”.
Straits Research also revealed how “North America makes up a significant portion of the market” with “an increase in beer demand and a leaning tendency toward alcohol usage” being the “two factors driving the North American alcoholic drinks market”. Plus, “product innovation by manufacturers in an effort to enhance their market share is another element fueling market expansion”.
According to the data, “the whiskey market is expected to grow by 3.2%” and Straits Research made pains to point out how “in the US, alcohol has a significant cultural impact” because “alcohol consumption is socially associated in America with gatherings and celebrations. Furthermore, drinking is encouraged as a prerequisite for having fun with friends [with] adults around the nation frequently bring alcoholic beverages with them as gifts while visiting friends or family”.
In Asia Pacific, the alcoholic drinks industry is anticipated to expand quickly due to the region’s large young adult population and increased demand for alcoholic drinks. The report highlighted how “alcoholic beverage sales in Asia-Pacific are anticipated to increase at a 2.5% CAGR. Because of changing lifestyles, more disposable income, and a young population, the Asia-Pacific area is currently seeing an upsurge in alcohol use”.
Researchers noted how “the region’s increased alcohol consumption is partly due to the acceptance of western culture, the perception of drinking as a social and leisure activity, and an increase in parties and festivities”.
Additionally, findings showed that “the market for alcoholic beverages in Africa is anticipated to expand significantly over the future years as a result of rising tourism and a boom in demand for alcoholic beverages in the duty-free retail sector”.
According to Straits Research “Mexico and Brazil are two of the region’s top alcoholic beverage consumers” but stated that “some Middle Eastern nations, notably Saudi Arabia, Iran, Kuwait, Yemen, and the Emirate of Sharjah, have alcohol prohibitions” [but] even in those nations where alcohol consumption is legal, consumption is still quite low”.