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Alcoholic Drink Industry: Get Industry Insights

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Global Alcoholic Drinks Industry

The global alcoholic drinks industry (one of the two major segments of the beverage industry) is expected to exceed $1 trillion in 2014, according to MarketLine. Market volume is predicted to reach almost 210 billion liters in 2014, a 10% increase in five years. Beer, cider and flavored alcoholic beverages represent the leading market segment with over half of the overall market value. The EU represents almost 57% of the world alcoholic drinks market.

The industry is characterized by fragmentation with the three leading companies holding almost 40% of overall market volume. The market is lead by Anheuser-Busch InBev, which has over 20% of the overall market volume.

Alcoholic beverages include beer, cider, ale, wine (including sparkling, barley, and rice wine) and spirits such as rum, whiskey, brandy and vodka. Almost 40% of the world’s alcoholic beverage consumption involves branded drinks that are usually large companies operating at an international level and investing heavily in marketing to promote image and encourage consumer loyalty.

Key Market Products

The world beer industry contracted by almost 0.5% in 2009, hitting $471 billion, reports MarketLine. The market is expected to reach close to $497 billion by 2014, a near 6% increase in five years. The market, which exceeded a volume of 148,000 million liters in 2009, is predicted to exceed 160,000 million liters in 2014, representing 8% growth. Regular lager is the leading market segment, representing almost 56% of overall market value. The EU holds almost 48% of the global beer market.

The global cider market is expected to exceed $2.5 billion by 2015, according to Global Industry Analysts. Growth is being driven by demand for organic products and drinks with low alcohol content. The UK is the world’s biggest and most rapidly expanding cider market, partly thanks to aggressive marketing, increased demand from young consumers, and rising disposable incomes.

The world wine market is expected to exceed 26 billion liters by 2015, reports Global Industry Analysts. Growth potential is more evident in developing nations such as India, China and Russia. Wine consumption is driven by claims of health benefits such as a degree of protection against cancer, cardiovascular disease, muscular degeneration and Alzheimer’s disease and evolving tastes. In recent years the market has been generating higher profits partly due to internet retail. Traditional regional leaders such as Italy and France are being forced to become more competitive to stave off rivals in the form of newer regions such as Australia and China. The global wine market is under pricing pressure due to a sizeable supply glut.

The global spirits market expanded by more than 3% in 2010 to exceed $262 billion, reports MarketLine. The market is expected to exceed $306 billion in 2015, a 17% increase in five years. The market’s volume, which exceeded 19,000 million liters in 2010, is predicted to reach almost 22,000 million liters in 2015, representing a 10% increase. Whiskey leads the market, holding over 26% of overall market share. The EU represents almost 48% of the market’s overall value. Diageo is the top spirits company in the world, with over 5% of overall market volume.

Industry Leaders

Leading companies on the global alcoholic beverage market include: US-based Bacardi, which produces and sells 10 types of rum and 200 other brands including Bombay Sapphire gin and Grey Goose vodka; the world’s leading wine retailer Constellation Wines; and Australian Fosters, which employs over 2,000 people, sells its products in over 45 countries and was purchased by SABMiller for nearly $12 billion in 2011. 

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