The global alcoholic beverage market is expected to witness considerable growth over the forecast period. The demand is strongly driven by the significant rise in demand for alcoholic beverages from the millennial population across the world.
One of the primary drivers for the growth of this industry is the concept of alcohol consumption which has penetrated into the culture among the people of developing countries. Moreover, the strengthened distribution network adopted by alcohol manufacturers and increasing purchasing power in the developing economies such as Brazil and India are boosting the growth in the industry.
The industry is highly consolidated and has high barriers to entry for smaller market players. The top 4 players which include Anheuser-Busch InBev, SABMiller, Heineken and China Resources Enterprises, account for a significant share of the industry. By product, the industry can be segmented as into the various types of beverages such as beers, vodkas, whiskeys, rums and wines.
The Asia Pacific region is expected to be the fastest growing industry and making manufacturers focus on increasing penetrating in the region. According to the latest European health report from the World Health Organization, people in the European Union consume more alcohol than in any other part of the world, drinking an average of 8.71 liters of pure alcohol, per person a year. Countries such as Austria, Lithuania, and France are estimated to consume a significant share of the world alcohol produce, followed by the other member states from the union.
The growth in the global alcoholic beverage market is expected to be initially moderate but is expected to grow stronger with increasing consumer base for alcohol consumption especially among youth generation in the forecasted period.
Availability of substitutes such as non-alcoholic beverages and energy drinks pose a significant threat to the industry. Health and wellness awareness has started to shape the consumption habits of the consumer. Consumers now are more informed than before, and the increased awareness regarding the ill effects of alcoholic beverages may pose a threat to the industry.
Major players in the industry are forming alliances in order create dominance in the market acquiring a significant share of the alcoholic beverage industry. For instance, SABMiller, a London-based brewing company has a joint venture with the North American Molson Coors Brewing Company that has acquired a significant industry share in the beer segment, aimed to gain a competitive edge over the players from the developing countries such as India, China, and Brazil.
The industry is characterized mergers and acquisitions among the top players, making it highly competitive across the globe. In October 2015, Dutch beer giant Heineken acquired a majority stake in Slovenian brewer Pivovarna Laško in a reaction to Anheuser-Busch InBev bid to buy its rival SABMiller.
Heineken is now able to tap the eastern European market selling brands such as Lasko, Lasko Malt, and Pils. Moreover, In March 2015, the company announced its plans to invest over USD 470 million to establish a new brewery in northern Mexico to step up its production and supply in the region making it the company’s seventh investment in the country.
Heineken over the years had its marketing campaigns focussed on creating awareness for responsible alcohol consumption. The company sells its flagship brand and brews beverages such as Desperados Beer, a unique tequila flavored beer; Sol, a Mexican beer which is the part of Heineken portfolio since the acquisition of FEMSA and Strongbow Apple Ciders, a proposition with the unisex drink.
Some of these players are involved in making huge investments in marketing and advertisement strategies to ensure their customer loyalty. Carlsberg Group sells company's flagship brand, Carlsberg Beer, and brews other brands such as Kronenbourg, Tuborg, Russian beer Baltika, Belgian Grimbergen abbey beers, and more than 500 local beers.
Moreover, the company has exponentially stepped up its marketing budget by over 500% as it seeks to tap new regional alcoloholic beverage markets and ensure its market share in the UK. Carlsberg has sponsored key global sporting events such as Euro 2016 and are associated with the English Football team as a part of its marketing strategy.
However, regulation in countries such as India, do not allow advertisement of alcoholic beverages over the national television, but private channels often permit alcohol companies to advertise indirectly using surrogate products under the brand name.
Key players in the alcoholic beverage market include Anheuser-Busch InBev, Diageo, Carlsberg, Heineken, Pernod Ricard, Remy Cointreau, SABMiller, and Bacardi.
Avail customized purchase options to meet your exact research needs:
Get your queries resolved from an industry expert.
Design an exclusive study to serve your research needs.
A testimonial for service in the form of BBB "A" Accreditation.
Your personal and confidential information is safe and secure.
"The quality of research they have done for us has been excellent..."
The demand for packaged and processed foods is expected to increase owing to their longer shelf life. Furthermore, manufacturers are closely monitoring the product supply to major retailers through specialized communication channels in order to improve restocking. In addition, processed food manufacturers have urged the packaging raw material suppliers as well as contract packers to ensure a steady flow of goods during the lockdown related to COVID-19. The report will account for Covid19 as a key market contributor.