Expected Global Growth of Alcoholic Beverage Market
The demand for alcoholic beverages is growing at a fast rate. Research has emerged and is forecasting predictions of sales reaching over $1 billion by 2022. The breadth of the industry includes beer, wine, and spirits. Countries all over the globe are expected to see an influx in demand for these alcoholic beverages.
How well the industry performs means a lot regarding business and strategy. Depending on trends and areas of growth, companies need to utilize these market trends as the key drivers for their development. Taking a closer look on a global scale improves chances of success in a highly competitive market.
Overview of Alcoholic Beverage Market
The alcoholic beverage market is expected to reach $1.6 billion by 2022. This is a 2.1% increase from 2015 where the market was evaluated at $1.3 billion. For centuries, cultures across the globe have consumed alcoholic beverages in some form or another. Much of the market is constructed from local specialties which mean new and locally owned brands have a fighting chance to compete in a large sector. A small majority of the market is formulated from commercial brands that are capable of producing and reaching customers on a global scale. The numbers found in the research are expressed by the pricing which is determined by the cost of production and the duties levied.
What Drives the Alcoholic Beverage Market?
Research is suggesting the surge in the beverage market is a result of an increase in the young-adult demographic purchasing more beverages. The economy is in a bit of an upswing. More individuals are finding themselves with a large portion of disposable income, and they want to spend it on premium alcoholic beverages and products. Obvious health concerns over consumption will see the market plateau, but alcoholic beverage mergers and acquisitions will play a role in maintaining success throughout the sector for different brands and companies. Larger companies like Anheuser-Busch InBev SA/NV and Bacardi Limited are expanding their strategy to include agreements, product launches, and expansions to sustain healthy growth.
Global Beverage Dominance
The alcoholic beverage market is comprised of beer, wines, and distilled beverages. But, throughout the sector, one in particular, has reigned supreme — beer. In 2015, it dominated the industry and owed much of its value to high global consumption. In the market research, beer is still expected to surpass the others in dominance, but distilled beverages are predicted to grow at a much faster rate. According to Allied Market Research Team Lead, Eswara Prasad:
"The demand for distilled spirits in the alcohol industry is relatively high, owing to the shift towards high-grade spirit variants. Higher consumption of hybrid, mixed, and flavored spirits are expected in the near future, due to the downward trend of the beer market."
Analysis of Alcoholic Beverage Consumption Around the World
In North America, the young-adult population is driving the market forward to meet its goal of $1.5 billion by 2022. It's also going to focus more on high-quality alcoholic beverages. In China and India, two countries considered to be an emerging market for the adult beverage industry are expected to show some growth due to a substantial increase in disposable income throughout the region. Europe is expected to outperform them all accounting for three-fifths of the market. The major players will include France, Spain, and the UK.
Merger and Acquisitions for Alcoholic Beverage Industry
Brindiamo Group sustains a long portfolio of successful mergers and acquisitions. Our team is comprised of entrepreneurial experts who have experience building, buying, and selling companies. As a result, we have a thorough understanding of the challenges (and the rewards) offered to businesses in the adult beverage market.
We can put our expertise to work for you. Visit our website to discover more about how we can help with your adult beverage merger and acquisition.