The global alcoholic beverage market is expected to witness moderate growth and reach an estimated $1,369.5 billion by 2018. Increasing demand of alcoholic beverages in emerging countries because of their huge population base and growing consumption of alcohol by the young generation as well as rising disposable income supports the industry growth. Alcoholic beverage includes three segments such as wine, beer, and spirit.
Lucintel, a leading global management consulting and market research firm, has conducted a detailed analysis on the alcoholic beverage market and presents its findings in “Global Alcoholic Beverage Market 2013-2018: Trend, Forecast, and Opportunity Analyses.” From the analysis presented, alcoholic beverage raw material suppliers as well as alcoholic beverage producers will recognize that valuable opportunities exist in the global alcoholic beverage industry, due to impressive trends in demand quantity and growth, based on the various markets.
The report depicts that various challenges exist in the alcohol beverage industry. There is a high degree of competition as the industry is highly fragmented in nature where top players contribute small portion of industry revenue. Increasing raw material prices with strict governmental regulations is proving to be a challenge for industry growth. Prevalence of substitute products is expected to pose a threat to the industry. It has recently been observed that marijuana is being legalized in various nations, especially in the US, which can affect the alcoholic beverage industry. Unfavorable climate and scarcity of input materials such as water, fruits, etc. could also pose a challenge to the growth of this market.
Lucintel also describes the industry drivers. Alcoholic beverage demand increases with changing taste and preferences of consumers, high consumer affluence towards drinks, and increasing disposable income. New product development and innovation plays an important role and act as a growth driver for industry. Another major driver for the industry is advancement in distribution channels such as online sales, separate counters for females, outlets in airports, etc. Growing tourism sector is also playing a significant role in driving the alcoholic beverage industry.