The Global Beverage Alcohol Industry’s Leading Trends 2022
In Matthew Iovane’s opinion consumer behavior and technology are evolving, and there is a growing awareness of the importance of environmental stewardship, which is reshaping the global beverage and alcoholic beverage business. The yearly Global Trends Report published by IWSR Drinks Market Analysis analyses these shifts and trends. Consumers who have never tried a category before will benefit from the introduction of new entry-level brands. Consumer appreciation for crafted products is being driven by premiumisation and a new mentality of “less is more.” Niche flavors are also becoming increasingly popular.
According to type, distribution channel, and geographic region, the global alcoholic beverages market may be divided into three categories. Beer, distilled spirits, wine, and spirits are the different types of products available on the market. Within each of these categories, beer is further differentiated into sparkling beer and fortified wine, among other variations. Liquor stores and convenience stores are two of the distribution channels used in the worldwide alcoholic beverage business, which are split further.
Matthew Iovane makes clear another trend that is propelling the expansion of the alcohol beverage business is sustainable sourcing of raw materials. Consumers are motivated to contribute to the local economy and are frequently interested in supporting local brands. With 48 percent of American alcohol drinkers stating that sustainability has a favorable impact on their purchasing decision, sustainability is becoming an increasingly relevant problem for beverage alcohol companies. Affluent Chinese customers also believe that social responsibility and environmental initiatives are essential elements in their purchasing decisions, with 72 percent stating that they are.
Ecommerce has emerged as a significant channel for the beverage and alcoholic beverage industries. By 2025, internet sales of alcoholic beverages will account for 6 percent of the off-trade total. In terms of volume, ecommerce accounted for less than 1% of total sales in 2018. The beverage alcohol sector will be shaped in the next years by structural long-term shifts in the off-trade. With the expansion of the sector has come the emergence of new business models that blur the distinction between traditional retail and online shopping.
The worldwide alcoholic beverages industry is predicted to increase at a compound annual growth rate (CAGR) of 3.1 percent in terms of consumption. These developments are ascribed to an increase in the number of young adults in the population as well as high disposable incomes. Furthermore, the notion of alcohol drinking as a soothing activity is fueling the expansion of the sector…. The worldwide beverage alcohol business is predicted to reach a value of $2 trillion by 2020, according to forecasts. Its size is expected to develop fast, particularly as a result of the rapid increase in demand in emerging markets.
Premiumization continues to drive market growth, but consumers are moving between drink options more frequently as a result of this trend. Because of this, people are trying new items and broadening their culinary horizons. According to recent IWSR data, a growing sector of the consumer market has a hunger for craft beers, hard seltzers, wine, and Japanese whiskey, among other things. Drinks firms are responding to this trend by diversifying their product ranges and preparing for the softening of their main brands in advance of the trend.
Matthew Iovane assures that in the near term, a new pandemic will continue to harm the drinking alcohol business. These modifications will continue to have an impact on consumers across the sector for many years to come. Over the next few years, the beverage business will continue to undergo significant transformations as consumers feel more secure in social situations with friends and family, regardless of whether they are drinking alcohol or not. BevAlc Insights is examining developments in the beverage industry through 2022 with this in mind.
As health concerns have grown, people have begun to seek out beverages with lower alcohol content and to cut back on their overall alcohol intake. As a result of this trend, vendors have begun to provide low-calorie cocktails in order to suit the demands of this expanding part of the market. The popularity of alcoholic beverages is expected to rise even higher as a result of this tendency. A multitude of factors will contribute to the expansion of the global beverage alcohol industry in this category. The dangers of excessive alcohol intake are becoming increasingly well known around the world.
