Sales In The Alcoholic Beverages Market Are Falling For The First Time Since The Lockdowns
25 Mar, 2021
The pandemic caused sales of alcoholic beverages to rise greatly throughout the year, as a majority of the global population was stuck at home with limited forms of escapism. This growth in the alcohol market could also be because of a much larger portion of alcohol sales being direct rather than through bars, cafes, and restaurants, as they were shut down to prevent spread of the virus. Now, alcohol sales are waning in the USA for the first time since the pandemic! While sales are still higher this March as compared to last March before the lockdowns occurred, the purchasing of alcoholic drinks seems to be leveling out. The global alcoholic beverages market is still showing growth, mainly due to the companies rearranging their operations and recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. It is expected to grow from $499.74 billion in 2020 to $546.15 billion in 2021 at a compound annual growth rate (CAGR) of 9.3%. The market is then expected to reach $735.83 billion in 2025 at a CAGR of 8%.
Consumer behaviors certainly changed considerably during the coronavirus lockdowns and quarantine period, and with restaurants and bars closed, much of the population increased their purchasing of spirits, wines, and beers while stuck at home. The decline in such purchases now could be a reflection of public places opening up and people being able to leave their homes more often, which flattens out the surge in alcohol sales over the last year.
As per data on the Global Market Model, Asia Pacific is the largest region in the global alcoholic - beverages market, accounting for 42% of the market in 2020. North America is the second largest region, accounting for 24% of the global market. The Middle East was the smallest region in the global alcoholic beverages market.
The alcoholic beverages market consists of sales of alcoholic beverages by entities (organizations, sole traders and partnerships) that produce alcoholic beverages through the fermentation process and that produce distilled alcoholic beverages. The companies in the alcoholic beverages industry process raw materials into alcoholic beverages, package and distribute them through various distribution channels to both individual customers and commercial establishments. The alcoholic beverages market is segmented into beer, wine and brandy and spirits. It is also segmented by distribution channel into off-trade channels, on-trade channels and by category into mass and premium. Subsegments covered in the alcoholic beverages market report are ales, lagers, stouts & porters, malts, wine, brandy, whiskey, vodka, rum, tequila, gin, and other spirits.
Growth in the market is expected to continue. The world population is growing and is expected to reach 10 billion by 2050. Increase in population creates more demand for alcoholic-beverages. Crop production, farming activities and trade volumes will have to increase in order to meet increased population. Therefore, companies in this market are expected to benefit from rising demand for alcoholic beverages products due to rising population, during the forecast period.