US Alcoholic Beverages Market to Grow by USD 37.5 Billion (2024-2028) as New Product Launches and AI Shape Market Trends- Technavio

NEW YORK, Oct. 14, 2024 /PRNewswire/ -- Report on how AI is redefining market landscape - The Alcoholic Beverages Market in US size is estimated to grow by USD 37.5 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of almost 2.09%  during the forecast period. new product launches is driving market growth, with a trend towards new packaging formats. However, campaigns against alcohol consumption  poses a challenge - Key market players include Anheuser Busch InBev SA NV, Asahi Group Holdings Ltd., Bacardi Ltd., Bronco Wine Co., Brown Forman Corp., Constellation Brands Inc., Diageo Plc, E. And J. Gallo Winery, Fifth Generation Inc., Heaven Hill Sales Co., Heineken NV, Molson Coors Beverage Co., Pernod Ricard SA, Sapporo Holdings Ltd., Sazerac Co. Inc., Suntory Holdings Ltd., The Boston Beer Co. Inc., The Edrington Group Ltd., The Mark Anthony Group of Companies, and The Wine Group LLC.

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Market Driver

The Alcoholic Beverages market in the US is witnessing a notable trend with vendors introducing unique packaging labels and formats. These innovations not only grab consumers' attention but also extend the product's shelf life. Tetra packs, PET bottles, bag-in-box, and metal cans are gaining popularity, particularly among the millennial consumer segment. Their convenience for on-the-go consumption, lightweight nature, and single-serving sizes make them appealing. Companies like Carlsberg, Jim Beam, Goose Island, and Dogfish Head have adopted this strategy, with Carlsberg offering Ringnes beer in 330 ml convenience packs instead of bottles. This packaging shift is expected to boost market growth during the forecast period. 

The Alcoholic Beverages market in the US is experiencing diverse trends. Medium and low alcohol beverages are on the rise, with flavored and unflavored options gaining popularity. The flavored category, including flavored spirits and premium beer, is particularly attractive to young adults with high disposable income. Ethanol-based distilled spirits, such as whiskey and vodka, continue to dominate the market. Alcohol content varies across categories, with premium spirits and dark spirits typically having higher alcohol content. Plastic bottles, glass bottles, and tins are used for distribution. Modern trade, convenience stores, specialty stores, online retailers, hotels, restaurants, bars, commercial stores, on-premises, liquor stores, grocery shops, and liquor stores are key distribution channels. A diverse selection, including wine lists and artisanal spirits, is essential for customer attraction. Craft beer and hard seltzer are emerging trends in the market. 

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Market Challenges

• The Alcoholic Beverages market in the US faces significant challenges due to increasing campaigns against alcohol consumption. These campaigns, launched by regulatory and social organizations, aim to educate the public about the negative health effects of alcohol, particularly among younger demographics. In 2021, the Pan-American Health Organization (PAHO) initiated a campaign, "Live Better, Drink Less," highlighting the risks of liver diseases, cancer, cardiovascular problems, and tuberculosis associated with alcohol consumption. These efforts may negatively impact the growth of the Alcoholic Beverages market during the forecast period.
• The Alcoholic Beverages Market in the US is thriving, with key players including Online Retailers, Hotels, Restaurants, Bars, Commercial Stores, and Liquor Stores. On-premises sales dominate, but off-premises, particularly Grocery Shops, are growing. Young adults with high disposable income are driving demand for diverse selections, such as wine lists, craft beer, premium spirits, and hard seltzer. Ethanol-based beverages, including distilled spirits like Whiskey, Vodka, and Dark Spirits, as well as Premium Beer and Artisanal Spirits, are popular. Beverage trends reflect Western lifestyle preferences, with an emphasis on Fermentation processes using Grains, Berries, Sugars, and Fruits. Distillation methods vary, producing Alcoholic Content ranging from High to Low. Overall, the Beverages Market for Beer, Wine, and Spirits continues to grow.

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Segment Overview 

This alcoholic beverages market in US report extensively covers market segmentation by  

1. Distribution Channel
• 1.1 Off-trade
• 1.2 On-trade
2. Product 
• 2.1 Beer
• 2.2 Wine
• 2.3 Spirits
• 2.4 RTD
• 2.5 Others
3. Geography 
• 3.1 North America

1.1 Off-trade-  The alcoholic beverages market in the US is witnessing significant growth in the off-trade channel, which includes supermarkets, hypermarkets, specialty stores, and online sales. Supermarkets and hypermarkets, such as Aldi, Tesco, Carrefour, and Target, maintain a large inventory of various alcoholic beverage brands, providing consumers with convenience and a wide range of options. The increasing number of new stores opening, like Aldi's 2,500 stores in 2022, is expected to boost sales. The off-trade sales are also expected to rise due to the growing number of vodka manufacturers selling their products through these channels and the increasing internet penetration and online consumer base. E-commerce platforms offer benefits like personalized shopping assistance, product comparisons, and consumer reviews, driving growth. Convenience stores and specialty retail stores are also experiencing growth due to an increase in their number and online sales. Online sales are predicted to increase further due to competitively priced offerings and quick delivery services.

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Research Analysis

The Alcoholic Beverages Market in the US is a significant sector, encompassing a diverse range of products including wines, beers, and spirits. The production process for these beverages involves fermentation, which converts sugars, grains, berries, fruits, and other raw materials into alcohol. Wines are typically made from fermented grapes, while beers are produced from malted grains and hops. Spirits, such as whiskey, vodka, and rum, undergo distillation to concentrate the alcohol content, resulting in high, medium, or low alcohol levels. Premium beers and artisanal spirits offer unique flavors derived from various ingredients and production methods. Ethanol is the common alcohol found in all these beverages, contributing to their intoxicating effects. The market for alcoholic beverages continues to evolve, with consumers seeking new and innovative products to satisfy their preferences.

Market Research Overview

The Alcoholic Beverages Market in the US is a thriving industry, encompassing a wide range of products from wines and beers to spirits. The production process involves fermentation of various raw materials such as grains, berries, sugars, and fruits. Fermentation converts these ingredients into alcohol, with the alcoholic content varying from low to high. Beers, made from malted grains, undergo a brewing process, while wines are produced from fermented grapes. Distillation is used to create spirits, including unflavored and flavored options like vodka, whiskey, and rum. The market is segmented into several categories, including mass and premium, with plastic bottles, glass bottles, and tins used for packaging. Diverse selection and attractive customer experiences, such as extensive wine lists and craft beer offerings, are key factors driving growth. Young adults with high disposable income and Western lifestyle trends are major consumers. Distribution channels include modern trade, convenience stores, specialty stores, online retailers, hotels, restaurants, bars, commercial stores, on-premises, liquor stores, and grocery shops. Alcoholic beverages come in various categories, including beer, wine, spirits, and emerging trends like hard seltzer. Ethanol, the primary alcohol used in these beverages, is derived from distilled spirits. The market continues to evolve with the introduction of artisanal spirits and dark spirits.

Table of Contents:

1 Executive Summary

2 Market Landscape

3 Market Sizing

4 Historic Market Size

5 Five Forces Analysis

6 Market Segmentation

• Distribution Channel
• Off-trade
• On-trade
• Product
• Beer
• Wine
• Spirits
• RTD
• Others
• Geography
• North America

7 Customer Landscape

8 Geographic Landscape

9 Drivers, Challenges, and Trends

10 Company Landscape

11 Company Analysis

12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio