Global Alcoholic Beverage Market

Description

The demand for alcohol has been increasing throughout the world, mainly because of the increase in the adult population. The Global Alcoholic Beverages Business is currently accounted for US$XX Billion and is expected to grow to US$XX Billion by 2022, at a CAGR of XX% during the forecast period. Improved standard of living and increasing disposable incomes have led to the growth in alcohol consumption. A trend of premiumisation has also stepped in, where consumers are more interested in the quality, taste and origins of the beverage. This has also helped the authentic beers and wines to stay popular and become standards of excellence.

Market Dynamics:

While the European and the North-American alcohol markets have always been huge, recent years have shown saturation and the market expansion ah been relatively slow. However, the Asia-Pacific market has grown well, over the years and has tremendous scope for expansion. Innovations in packaging, tactful marketing and a range of flavours in all the alcoholic beverages have been responsible for the current scenario. Although in Europe, the market is fragmented due to a presence of a large number of local brewers, Market Giants have succeeded in maintaining their brand value across the globe. Various marketing strategies like sponsorships and T.V. shows have helped them to create their brand image in emerging markets. Also, increased awareness regarding the health benefits of alcohol, such as better digestion, improved cardiovascular health and protection against cold have helped the market to grow. Increased health- consciousness has made new innovations like gluten-free and low-calorie alcohols more popular.

Market Segmentation:

Alcoholic drinks can be divided into three categories- Beer, Wine and Spirits. Beer has always been the leading segment. Wine is the second largest segments. On the basis of purity, the market is divided into distilled and non-distilled segments. India and America use the term ‘Hard Alcohol’ for non-distilled alcoholic beverages. Local markets, especially in the emerging, Asian markets are further fragmented into country liquor and foreign liquor. Country liquor contains local fermented beverages that may or may not be derived from internationally conventional sources of alcohol. Being cheaper and widely available, they give a tough competition to the brewing giants in respective markets.

Geographical Analysis:

Europe has the highest per capita consumption of alcohol. France, Germany, Italy and U.K. are the leading consumers of alcohol in the region. The North American market is a saturated one for alcoholic drinks and is expanding at a slow pace. However, Mexico was the fastest growing country for alcoholic beverage market in this region. The Asia-Pacific region was the largest shareholder in the global spirits market, with China being the largest market, followed by India.

Some of the key players in the industry include Diageo (U.K.), Bacardi (Bermuda), William Grant & Sons (U.K.) and Mast-Jagermeister (Germany).