Global alcohol market to slow down amid challenging landscape
By Joseph Ekeng
In the face of a challenging political and economic landscape, the global beverage alcohol market is projected to deliver over $21.6 billion to the global economy by the end of 2023, according to new data and forecasts from IWSR Drinks Market Analysis. However, the future growth in volume is expected to be subdued, with a Compound Annual Growth Rate (CAGR) of only 1% projected for the period of 2022-2027. This forecast indicates a shift away from the United States and China as the key volume drivers for the global beverage alcohol industry.
While the US and China have traditionally played major roles in driving volume growth, India, Mexico, and Brazil are emerging as the key volume growth markets over the next five years. In fact, India and Mexico accounted for more than half of all volume growth in 2022. Despite anticipated volume declines from 2022 to 2027, the US and China will continue to be significant value drivers. The total beverage alcohol market in the US is expected to grow by $12 billion, while China’s market is projected to grow by $41.7 billion during this period.
Commenting on the market dynamics, Mark Meek, CEO of IWSR Drinks Market Analysis, highlighted the impact of geopolitical and economic turbulence on alcohol consumption behaviors. He said, “As geopolitical and economic turbulence impacts the market, alcohol drinkers are shifting their consumption behaviors. The key trends that have underpinned the industry, such as premiumization, will evolve as consumers respond to the increased cost of living crisis. The industry will, however, still deliver pockets of significant value growth. The pandemic also accelerated the rise of trends such as the at-home occasion and moderation; these behaviors are now here to stay.”
The findings from IWSR’s analysis indicate that while the global beverage alcohol market is facing headwinds in terms of volume growth, there are opportunities for value growth in certain regions. As consumer preferences and economic factors continue to shape the industry, players in the beverage alcohol sector will need to adapt and innovate to meet changing demands. The rise of trends like at-home occasions and moderation presents avenues for growth, as consumers seek new experiences and balance in their consumption habits.
By keeping a pulse on evolving consumer behaviors and market dynamics, industry players can navigate the changing tides and unlock new opportunities in the years to come.
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