Expected to exceed a global sales volume of over $1 trillion this year, the alcohol beverage industry looks to be on the verge of a breakout year. The volume of alcoholic beverages that is expected to be consumed in 2014 is estimated to be at 210 billion liters, which is a 10% increase in alcohol intake in just 5 years!
Alcohol Industry Trends
Despite increases, typical markets in this industry are expected to contract.
For most of the industrialized world, the market for alcoholic beverages has been static at best. Many components of the alcohol beverage community, especially beer producers, are expecting heavy contractions within the next few years in their established markets. Emerging markets, however, especially in Latin and South America, are expected by industry leaders to off-set any contraction seen in today’s established markets.
Alcohol Sales Statistics
1. Three companies worldwide account for 40% of the total amount of alcohol sales that occur every year.
2. One company, Anheuser-Busch InBev, controls over 20% of the total global sales volume by themselves.
3. Almost 40% of global alcoholic beverage sales is from branded products through international companies that invest heavily in multi-faceted marketing campaigns.
Takeaway: Although niche alcoholic beverages can be fun for consumers to drink, the cost of these specialty products is usually prohibitive for consistent consumption. That means users will turn to alcoholic products that are cheaper and international companies can leverage prices because of their ability to control large segments of the market. There is variety out there, but you’ll have to pay more to experience it.
Other Alcohol Beverage Statistics
1. The world beer market is expected to sell almost $500 billion worth of beer in 2014.
2. The global spirits market expanded by 3% in 2010, the last year definitive statistics are available, and is expected to increase to a $306 billion industry in 2015. This would be a 17% total increase in sales in just 5 years.
3. Whiskey accounts for 28% of the global spirits market and the European Union provides 48% of the world’s whiskey that is consumed.
4. The European Union also represents 57% of the world’s alcohol beverage market.
5. To spur sales in existing markets, beverage makers are expected to offer customers more variety in flavors of drinks and in alcoholic content of drinks to encourage more at-home use.
6. Bacardi, a United States based manufacturer, produces and sells 10 different types of rum and controls over 200 unique brand names of alcoholic drinks.
7. The US wine industry as of 2010 began to outpace France in terms of global wine consumption.
Takeaway: Traditional markets of alcohol consumption might be contracting, but so are traditional manufacturers of alcoholic beverages. As people struggle with difficult life circumstances, an alcoholic beverage with some friends can help people lose themselves for awhile and an escape can be had. Because of that, the alcoholic beverage industry will always have a chance to grow and expand.