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10 Extraordinary Alcohol Industry Statistics

The alcohol industry is one of the major drivers of the economy every year. In 2010, for example, almost 4 million people were employed because of the efforts of this industry. It isn’t just at the national level where this industry contributes to society either. About 5% of all net profits on average are returned back to local communities for domestic development.

Present Alcohol Industry Facts

The alcohol industry achieves over $400 billion in revenues every year in the United States alone.

Hard times come and go, but alcohol sales tend to increase every year. It is in the hard times, in fact, that the alcohol industry tends to have some of its best years! That’s because a strong drink can help someone forget about the troubles of the day for awhile, be social with friends, and have a good time. Though it’s not recession-proof, there will always be a market.

Essential Facts About the Alcohol Industry

1. In 2010 – 2011, alcohol sales grew by 10% in a 12 month period despite unemployment rates being above 9%.
2. Legacy beers are the only primary category of alcohol that is seeing a consistent drop in sales. Consumers have moved to ultra-low cost mass produced beers or craft beers.
3. India Pale Ale has shown a history of explosive growth, with a 40% annual increase in sales in just one 12 month period.

Takeaway: People are looking for something different when it comes to the alcohol they consume. Of course there are always abuses in the system, but for the most part people either want to save money to experience the same kind of buzz… or they’re willing to pay more for a better product to provide that buzz. Legacy beers like Budweiser or Miller are struggling because there is no innovation seen. Without innovation, customers struggle to justify a continued expense, especially when a craft beer can contain double or triple the alcohol content.

Additional Alcohol Industry Facts

1. The global alcohol industry is expected to exceed over $1 trillion in sales in 2014.
2. Despite the reduction in sales of legacy beers, Anheuser-Busch InBev, makers of several legacy beers, still controls over 20% of the alcohol industry’s revenues.
3. Drinks that are branded on a national or international level account for 40% of the total revenues produced by this industry.
4. Nearly 33% of the alcohol industry revenues are generated by the sale of spirits.
5. Bacardi was recently purchased for $12 billion because of its list of branded products and presence in over 45 different countries.
6. Over 26 billion liters of wine are expected to be consumed on an annual basis around the world starting in 2015.
7. Hard cider is one of the fastest growing alcoholic beverage niches today, accounting for $2.5 billion in sales that are driven for a desire to have organic, gluten-free products.

Takeaway: The only danger that the alcohol industry faces in the near future is a dilution of product differentiation. Although people associate with specific brands, there can be so much variation within a brand that they rob themselves of sales. With that being said, however, the outlook of this industry looks bright and it is a major contributor to the world’s economy each year.

Beer vs Wine Comparison

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