The Global Beverage Alcohol Industry's Leading Trends

Matthew Iovane explains consumer behavior and technology advancements, together with an increasing awareness of environmental responsibility, are reshaping the worldwide beverage alcohol sector. The annual Global Trends Report from IWSR Drinks Market Analysis analyses these shifts and trends. Consumers can now experiment with categories they've never tried before thanks to new entry-level companies. Consumer appreciation for crafted products is being driven by premiumisation and a new mentality of "less is more." Additionally, niche flavors are gaining appeal.

The global market for alcoholic beverages is classified by type, distribution channel, and geography. The market is segmented into four categories: beer, distilled spirits, wine, and spirits. Beer is further classified into sparkling and fortified wine within each of these categories. The worldwide alcoholic beverage market is also segmented by distribution channel, with liquor stores and convenience stores accounting for the majority of revenue.

Another trend that is accelerating expansion in the alcoholic beverage business is sustainable sourcing. Consumers desire to support local businesses and are frequently interested in supporting regional brands. Sustainability is becoming an increasingly relevant concern for beverage alcohol companies, with 48% of US alcoholic beverage consumers stating that it influences their purchasing decision positively. Additionally, 72% of wealthy Chinese consumers feel that social responsibility and environmental activities play a significant role in their purchasing decisions.

For the beverage alcohol business, ecommerce has developed into a significant channel. By 2025, internet sales of alcoholic beverages will account for 6% of the off-trade. In 2018, ecommerce accounted for less than 1% of total volume. The beverage alcohol sector will be shaped in the next years by structural long-term shifts in the off-trade. The industry's evolution has also resulted in the development of new business models that blur the distinction between traditional and online shopping.

Consumption-wise, the global alcoholic beverages industry is predicted to expand at a 3.1 percent compound annual growth rate. These changes are due to a growing young adult population and affluent households. Additionally, the industry's expansion is being fueled by the perception of alcohol usage as calming. Additionally, the worldwide beverage alcohol sector is predicted to exceed $2 trillion in value by 2020. Its size will significantly expand, owing mostly to the rapid development of demand in emerging markets.

As per Matthew Iovane while premiumization continues to drive market expansion, consumers are also switching between beverage options more frequently. As a result, people are experimenting with new goods and broadening their culinary horizons. According to recent IWSR data, an increasing part of the consumer market is hungry for craft beer, hard seltzers, wine, and Japanese whiskey. The beverage industry is responding to this trend by diversifying their portfolios and anticipating the weakening of their main brands.

In the foreseeable future, the beverage alcohol sector will continue to be impacted by a new epidemic. These changes will have a long-term impact on consumers across the sector. The beverage sector will continue to undergo significant changes over the next few years, as consumers feel more secure socializing with friends and family, whether or not they are drinking. The BevAlc Insights team is studying trends through 2022 with this in mind.

Matthew Iovane assures that consumers are more concerned about their health, prompting them to seek out lower-alcohol beverages and cut back on their use. Vendors have responded to this trend by introducing low-calorie cocktails to fulfill the demands of this rapidly rising segment of the market. This trend will only serve to promote alcoholic beverage appeal. This area of the global beverage alcohol market will grow in a variety of ways. Globally, there is an increasing understanding of the dangers of alcohol usage.