The alcoholic beverages market includes beer, wine, spirits and ready-to-drink beverages. Beer accounts for the largest share due to its widespread popularity and consumption in social gatherings and parties. Alcoholic beverages serve as means of enjoyment and relaxation for many. They also play an important role in social and cultural events.

The Alcoholic Beverages Market is estimated to be valued at US$ 1,769.41 Bn in 2023 and is expected to exhibit a CAGR of 2.5% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:
The global alcoholic beverages market is witnessing significant growth owing to changing social trends among millennials and the rising acceptance of social drinking. Younger consumers increasingly view alcoholic beverages as a means of socialization rather than just intoxication. Growth in disposable income and spending on leisure has also boosted the consumption of premium and super-premium brands. Moreover, the increasing popularity of cocktail culture and experimentation with new flavors has expanded the consumer base for the industry. Ready-to-drink alcoholic beverages especially flavored cocktails and ciders have gained substantial traction in the market. Innovation in tastes, packaging and marketing strategies by key players further drives the demand.

Porter's Analysis
Threat of new entrants: The global alcoholic beverages market is a highly consolidated market. Significant investments required for production facilities, branding, marketing and distribution networks makes the threat of new entrants low.
Bargaining power of buyers: The bargaining power of buyers is moderate due to availability of substitutes and standardized nature of products. However, well established brands have some pricing power.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are many suppliers for raw materials like grains, fruits, sugarcane etc. However, suppliers may have some control over pricing for specialty/premium ingredients.
Threat of new substitutes: Threat from new substitutes like non-alcoholic beverages is moderate as they do not fully substitute the experience provided by alcoholic beverages. However, health awareness is driving growth in low-to-no alcohol products.
Competitive rivalry: The rivalry between existing players is high due to established brands, distribution networks and fragmented market.

SWOT Analysis
Strength: Strong brand recognition, positioning and loyalty for premium brands. Established global distribution network.
Weakness: Impact of regulations on marketing and pricing. Dependence on commodity prices.
Opportunity: Emerging markets in Asia Pacific and Africa offer high growth potential.Demand for premium,craft and niche products is on the rise.
Threats: Increased health awareness and social pressures may reduce alcohol consumption in developed markets. Emergence of alternative beverages.

Key Takeaways

The global alcoholic beverages market is expected to witness high growth, exhibiting CAGR of 2.5% over the forecast period, due to increasing socialization and urbanization. Asia Pacific region is expected to be the fastest growing market for alcoholic beverages, expanding at a CAGR of around 3% between 2023-2030. Within the region, China, India and Indonesia are expected to drive high demand due to rising disposable incomes, westernization and hot climate suiting alcoholic beverages.

North America currently dominates the global market, accounting for around 30% value share in 2023. However, factors like more health conscious consumers and alternative beverages may limit growth in the near future. Key players operating in the alcoholic beverages market are Anheuser-Busch Inbev (BUD) (Belgium),Asahi Group (Japan), Bacardi (Bermuda),Brown Forman (U.S.),Carlsberg (Denmark),Constellation Brands (U.S.),Diageo (U.K.),Heineken (Netherlands),Pernod Ricard (France),Suntory (Japan). Innovation in flavors, focus on premiumization and expansion in emerging markets will be the key strategies adopted by major players.