Global Premium Alcoholic Beverages Market Size, Share, Opportunities, And Trends By Type (Wine, Beer, Spirits, Others), By Distribution Channel (Convenience Stores, Food Service, Supermarkets/Hypermarkets, Others), And By Geography - Forecasts From 2023 To 2028

The premium alcoholic beverages market is projected to show steady growth during the forecast period.

Premium alcoholic beverages are similar to regular alcoholic beverages. The reason some alcoholic beverages are considered ‘premium’ is due to the exclusivity and packaging of the beverages. For example, brands such as Bacardi, and Jack Daniels are considered premium due to their unique tastes and exclusive packaging.  Another factor that can be included in premiumization is the rarity of the products. Some brands have high brand value and prices because their products aren’t easily affordable or accessible. Alcohol has been popular due to the effects it provides to the body. It is socially accepted due to it being used as a stress relief and commonly used for special occasions such as parties, events and others. Some regard alcohol as a way to enhance the taste of the food paired with it, for example, pizza and beer or cheese and wine. Alcohol is certainly considered a drug due to the psychological effect it has on the body. Potential short-term effects of consumption of alcohol include hangover and alcohol poisoning, as well as conflict, lowered inhibition, loss of body control and risky behaviours, drowsiness, jumbled thoughts, and uncontrolled blackouts when excessively consumed. It can also lead to after-effects such as changes in mood, waves of nausea or vomiting, head pain, muscle cramps, loss of focus and lack of memory, and extreme dehydration. Due to this, drinking alcohol can be viewed as a negative thing by many individuals.

Introduction:

The premium alcoholic beverage market is expected to increase over the years with many high-value brands and companies producing quality products. A few popular products that are in the premium alcohol industry include Jinro Soju, Ginebra San Miguel Gin, Johnnie Walker, Smirnoff, Hennessy, Jack Daniel’s, Bacardi, Absolut, Captain Morgan, Chivas Regal, Grey Goose, Crown Royal, Baileys, Ballentine’s, Patron, Jim Beam and Jagermeister. These brands are popular due to the unique taste/ flavour it brings along with the alcohol content in the products. As of 2023, Global alcohol consumption had reached 446 billion litres, which mainly consists of wine, beer and spirits. Beers, ciders and lagers are the most consumed type of alcohol with 396.76 billion litres worldwide, which is followed by wine, and spirits. Among them, the most popular liquor that consumers prefer is Vodka, which accounted for 76.7 million 9-litre bottles to be consumed in the US alone (source: alcohol.org). As alcohol consumption increases, the preference for better quality alcohol also increases among consumers, which can have an impact on the growth of the premium alcoholic beverage market as well. The market is categorized by type, distribution channel and geography, where the demand for the type of alcohol product is dependent on the geographical region and distribution channel.

Market Drivers:

• Rising disposable income: Alcohol is often consumed by people who have economic stability and disposable incomes. An increase in disposable income leads to a change in the standard of living, which then leads to a change in preference for products and services.  This applies to those who consume alcohol as well since the increase in income will increase individual preferences for more flavourful alcoholic drinks. As per the OECD Better Life Index, the average household net adjusted disposable income per capita has amounted to US$30,490 a year, with the United States having an average of US$51,147. It has been proven that those with higher income brackets tend to drink more often. As income increases, the attraction towards more specific and premium tastes and flavours will also increase among consumers. Hence, as disposable income increases, the premium alcoholic beverages are expected to witness an increasing growth in the forecasted years.

Key Players:

• Anheuser-Busch InBev: Commonly known as AB InBev, Anheuser-Busch InBev is a Belgian multinational drink and brewing company known for being the largest brewer worldwide. Their company includes a variety of products, which include Aguila, Budweiser, Cass, Brahma and many others.
• The Heineken Company: One of the world’s largest brewers and a leading developer and marketer of premium alcoholic brands, which include beer and cider.
• Carlsberg Group: A Danish multinational company that is known for being one of the leading breweries worldwide, with a large portfolio of beers in the market.

Regional Analysis:

Europe is expected to witness steady growth in the premium alcoholic beverages market during the forecasted period of 2024-2029.  As per the data from the World Health Organization, the total alcohol consumption per capita is highest in Europe, with an average consumption of 14.4 litres/ year from Belarus (1.5 times more than Americans). The most popular among alcoholic beverages is vodka, which was consumed the most by Belarus residents (48 handles of vodka). As consumption is expected to increase at a steady pace, it is expected for the premium alcoholic beverages market to grow at a steady pace.

Market Developments:

• November 2023: Diageo announced a collaboration with ecoSPIRITS for the distribution of Gordon’s, Smirnoff and Captain Morgan in reusable glass packaging format. Distribution will be available to bars, hotels and restaurants in a 4.5L ecoTOTE design. This will increase distribution and increase global penetration for the companies.
• August 2020: Diageo announced the acquisition of Aviation Gin LLC and Davos Brands LLC. Aviation American Gin, the core product of Aviation Gin LLC. It is an American-style crafted gin that has blends of botanicals that deliver smooth balanced flavours to the consumers. Davos Brands LLC includes multiple well-known brands, such as Astral Tequila, Sombra Mezcal and TYKU sake. With the acquisition, Diageo was able to expand its market share in the premium alcoholic market beverage.

Segmentation:

• By Type:
  • Wine
  • Beer
  • Spirits
  • Others
• By Distribution Channel:
  • Convenience Stores
  • Food Service
  • Supermarkets/Hypermarkets
  • Others
• By Geography:
  • North America
    • United States
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • United Kingdom
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Israel
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others