The alcohol industry is one of the biggest industries in the world. It did take a hit during the start of the covid-19 pandemic but has been recovering positively. This product is not only sold in its natural liquid state but also mixed with chocolate and other food items that increase the scope of alcohol and its use. The popularity of different alcohol types varies from country to country.
General overview of Alcohol Industry
- About 446 billion liters of beer, wine, and spirits are consumed every year around the world.
- The majority of alcohol consumed are beer, lagers, and cider (nearly 400 billion liters), followed a distant second and third by wine (26 liters) and spirits (23 liters).
- The global alcoholic beverages market was valued at $1,439 billion in 2017 and is expected to reach $1,684 billion by 2025, registering a CAGR of 2.0% from 2018 to 2025.
- Most cultures across the globe have traditionally consumed various types of alcoholic beverages; however, local specialty alcoholic beverages account for the majority share
- On a global level, beer from barley, wine from grapes, and other distilled beverages are sold as commodities.
- The pricing of these beverages is determined by the costs of production and the duties levied on those costs.
- The growth of the global alcoholic beverages market is driven by an increase in the global young-adult demographic, a surge in disposable income, and a rise in consumer demand for premium/super-premium products.
- However, the high cost of premium/super-premium products and escalation of the nonalcoholic beverages market, owing to an increase in health concerns are expected to restrict the market growth in the near future.
- The recent developments in honey-derived products appear to be a viable alternative to produce innovative alcoholic drinks for consumers and to drive the future growth of this market.
- Various types of beer include ale, lager, and hybrid, whereas distilled spirits include rum, whiskey, vodka, and others.
- And wine is bifurcated into sparkling or fortified.
- Depending on the distribution channel, the market is divided into convenience stores, on-premises, liquor stores, grocery shops, internet retailing, and supermarkets.
- The availability of products at low cost and accessibility to a wide variety of alcoholic beverages available in supermarkets fuel the growth of this segment.
- Emerging markets such as China and India are expected to witness a significant increase in demand for alcoholic beverages during the forecast period in Asia-Pacific.
- Europe is expected to grow at the highest rate, closely followed by LAMEA, owing to an increase in alcohol drinking demographics.
- The global alcoholic drinks industry (one of the two major segments of the beverage industry) was worth more than USD 1.2 trillion in 2015, according to Sprout Intelligence.
- It was projected to grow at a CAGR of 1.7% during the period 2016-2020, reports Infiniti Research.
- The EU represents almost 57% of the world’s alcoholic drinks market in 2015.
- In 2020, approximately 180 million barrels of beer were produced in the United States. The country’s beer production numbers peaked in 1990 and have decreased overall in recent years.
- Alcoholic products most commonly bought in supermarkets in the United States were beer, malt-flavored beverages, and cider. This category generated over 11 billion U.S. dollars’ worth of sales in 2018. U.S. supermarket sales for spirits amounted to just over four billion U.S. dollars that year.
- Alcohol industry growth amounts to 7.9%
- Online alcohol sales jumped 243% during the coronavirus outbreak in the US.
- The US is the world’s largest wine consumer with 33 million hectoliters consumed in 2019.
- Around 30% of 15-year-olds report that they have had at least one drink in their lives.
- 5.5% of cancer cases are connected to abusing alcohol.
- Texas is the state with the highest number of drunk driving fatalities
- Alcohol addiction affects 5% of Americans.
- Moderate alcohol consumption is associated with lowering the risk of type 2 diabetes by approximately 30%.
- The vodka market amounts to $47,926 million in 2021.
- The vodka market share is expected to have a steady annual growth of 8%.
- Most of the vodka market revenue is generated in the US — $18,803 million with as much as $5.65 generated per person.
- Americans spend 1% of their gross yearly income on alcohol.
- China’s national liquor Baijiu accounts for 99.5% of all alcohol consumed in the country.
- China, Baijiu’s homeland, is a major alcohol-producing country, and it has been exporting all sorts of drinks.
- Sweden’s vodka export amounts to 20.6% of the global exports.
- Although Russia is amongst the heaviest drinking countries when it comes to vodka consumption by country, it isn’t exporting vodka as much.
- In fact, 89.9% of the world’s global vodka export comes from only 15 countries.
- 90% of the worldwide cognac sales are Very Special (VS) and Very Superior Old Pale (VSOP).
- About 15% of the alcohol consumed in Latin America is illicit.
- Beer is the least likely type of alcoholic beverage to be illicit with a 10.2% contribution to global illicit alcohol consumption.
- According to the latest spirits industry statistics, spirits and pre-mixed cocktails were the most purchased items as their sales increased by 75%. Also, wine sales increased by 66%, and beer sales by 42%.
- Around 30% of 15-year-olds report that they have had at least one drink in their lives. (National Institute on Alcohol Abuse and Alcoholism)
- According to the 2018 National Survey on Drug Use and Health (NSDUH), about 7.1 million people ages 12-20 reported drinking alcohol in the past month.
- Binge drinking is just as frequent in this age group — as many as 4.8 million people ages 12-20 admitted to binge drinking in the past month. (2018)
- The US is the world’s largest wine consumer with 33 million hectoliters consumed in one year.
- France takes second place with a total of 26.5 million consumed hectoliters.
- 28% of US Millennials drink wine every day.
- In fact, Millennials outperformed Baby Boomers in this regard in 2019.
- Most Millennials are conscious buyers meaning they prefer sustainable and organic wine.
- Millennials are attracted to interesting logos, fun designs, and catchy names.
- DUI statistics suggest that Texas is the state with the highest number of drunk driving fatalities — 13,138 deaths.
- 40.3% of people have the habit of calling a friend or a partner to pick them up when under the influence.
- Other interesting DUI facts suggest that 25.7% of people prefer to share a ride, while 10% simply walk home.
- In addition, 30.8% believe that drivers should lose their license temporarily after driving under the influence.
- Interestingly, 28.1% of people believe that it should take two DUIs to lose your license permanently.
- The yearly revenue decreased by around 200 billion dollars compared to 2019 in 2020.
- It will take at least until 2022 before the market recovers and surpass the 2019 pre-pandemic revenue.
- However, the Statista Consumer Market Outlook estimates that by 2025 the global market size of alcoholic beverages will increase to over 2.2 trillion U.S. dollars.
Alcohol Market Share in America
- Americans prefer beer most over wine and spirits.
- In America, 46 percent of alcohol consumption is beer, followed by spirits (37 percent) and wine (17 percent).
- Between 2000 and 2018, consumption of spirits has grown 28 percent, followed by a slight rise (6 percent) in wine.
- Consumption of beer, however, fell 18 percent during that time period from 2000 to 2018.
- Among spirits, U.S. consumers prefer vodka by a wide margin.
- Seventy-seven million 9-liter bottles of vodka are consumed every year, followed by cordials and liqueurs (25 million) at a distant second.
- Rum (24 million), American whiskey (24 million), tequila (19 million), Canadian whiskey (17 million), and brandy/cognac (14 million) follow.
- The red wine represents 23 percent of all wine Americans drink every year, followed by chardonnay (19 percent), cabernet (19 percent), pinot noir (17 percent), pinot grigio (16 percent), and rose (15 percent).
- Shiraz is the least consumed wine at 6 percent.
- In 2018 alone, Americans drank nearly 1.2 billion cases of beer.
- The beer that a majority of Americans prefer is light beer (1.2 billion bottles), followed by super-premium and premium beer (371 million), craft beer (310 million), and popular beer (180 million).
- Malt liquor is the least consumed beer at 52 million.
- Among U.S. vodka drinkers, Smirnoff vodka is the clearly preferred choice –Americans consumed over 2.5 million cases in 2019 alone.
- Barefoot is the leading brand for wine drinkers, and when Americans reached for a beer, they were mostly like to reach for a Bud Light.
Top spirit brand names are as follows-
- Tito’s vodka (1.7 million cases)
- Captain Morgan’s rum (1.4 million cases)
- Fireball (1.3 million cases)
- Jim Beam American (1.27 million cases)
The most popular wine brands are:
- Sutter Home ($389 million in revenue)
- Woodbridge ($347 million)
- Franzia Box ($346 million)
- Yellow Tail ($264 million)
- Black Box ($245 million)
- Josh Cellars ($207 million)
- Kendall Jackson ($202 million)
- Apothic ($194 million)
- Chateau Ste. Michelle ($186 million).
The most popular beer brands include:
- Coors Light (15 million barrels sold)
- Miller Lite (13 million)
- Budweiser (11 million)
- Michelob Ultra Light (8.8 million)
- Corona Extra (8.6 million)
- Modelo Especial (8.2 million)
- Natural Light (6.7 million)
Alcohol addiction is the most common substance abuse disorder in the US affecting 5% of all Americans.
Global Alcohol Revenue
- Anheuser-Busch InBev rules the beer industry. The company reported $54 billion in global revenues, followed only by Heineken Holding, which had a little more than half that revenue at $27 billion.
- Asahi Group Holdings came in third at $19 billion, followed by Kirin Holdings at $18 billion.
- Thai Beverage earned the least among the top seven producers at $8 billion.
- Global wine industry statistics suggest that the wine market generated $323,501 million in 2020.
- The trend will continue to grow by 9.8% annually.
Risk and fatal side of Alcohol consumption
- 5.3% of deaths worldwide are caused by alcohol.
- Alcohol abuse can cause massive problems and, in some instances, may lead to death.
- 3 million is the number of alcohol-caused deaths per year.
- Alcohol is the cause of numerous diseases and injuries and causes other problems, such as phobias and anxiety (check out our phobia statistics).
- Russia has the highest male alcoholism rate by country.
- 25% of Russian men die before 55 due to excessive alcohol drinking.
- 5.5% of cancer cases are linked to alcohol abuse.
- Alcohol abuse is responsible for 7.1% and 2.2% of the global burden of disease for males and females respectively.
The industry does give rise to some negative numbers due to the side effects of alcohol consumption. Thus, it’s regulated through various restrictions on age and advertisements. Awareness about the ill effects and encouraging regulative drinking will help both the consumers and the manufacturers.