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The US alcoholic beverages market size is forecast to increase by USD 37.5 billion at a CAGR of 2.09% between 2023 and 2028. The alcoholic beverages market in the US is experiencing significant growth, driven by various factors. New product launches, including hard seltzers and flavored malt beverages, have gained immense popularity among consumers, leading to market expansion. Additionally, the introduction of new packaging formats, such as cans and slim bottles, has increased convenience and portability, catering to the on-the-go lifestyle of consumers. However, campaigns against alcohol consumption, particularly among the youth, pose a challenge to market growth. Regulations and taxes on alcoholic beverages also impact market dynamics. Despite these challenges, the market is expected to continue its growth trajectory due to increasing consumer preferences for premium and super-premium alcoholic beverages.
The market in the US is a significant sector, encompassing various types of fermented and distilled beverages. Grains, berries, fruits, and sugars are the primary raw materials used in the production of alcoholic beverages. Fermentation is the initial process in creating beer, wines, and some spirits, while distillation is used to create distilled spirits like whiskey, vodka, and dark spirits. The alcoholic content of beverages varies widely, with wines typically having a low to medium alcohol content, beers ranging from low to high, and spirits containing the highest alcohol content. Flavor profiles also differ significantly between beer, wine, and spirits, with beer offering a wide range of flavors from light to dark, wine providing a complex array of fruit and earthy notes, and spirits delivering bold, distinct flavors.
Furthermore, alcohol consumption in the US is a popular social activity, with beer, wine, and spirits each holding a significant share of the market. Premium beer and artisanal spirits have gained popularity in recent years, driving growth in the market. Ethanol is the primary alcohol found in all alcoholic beverages, contributing to their intoxicating effects. The alcoholic beverages market in the US is expected to continue its growth trajectory, driven by changing consumer preferences and innovative product offerings.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The Off-trade segment is estimated to witness significant growth during the forecast period. The Alcoholic Beverages Market in the US comprises various categories, including beer, wine, and spirits. The production of these beverages involves the fermentation of grains, berries, sugars, and fruits. Distillation is used to create spirits, which have a higher alcoholic content compared to beers and wines. The alcoholic content in beverages can range from low to high, influencing consumer preferences. The beverage market offers diverse flavors, both unflavored and flavored, catering to various taste preferences. Beers are available in various categories, ranging from mass to premium, and are sold in plastic bottles, glass bottles, and tins. Wines are typically sold in glass bottles and come in various types, such as red, white, and rosé.
Moreover, spirits, including whiskey, rum, and vodka, are typically sold in glass bottles and have a higher alcoholic content. The off-trade channel includes modern trade, convenience stores, specialty stores, and online retailers. Supermarkets and hypermarkets have dedicated sections for storing alcoholic beverages and offer a wide range of options. The sale of alcohol through these channels is expected to increase due to the opening of new stores and the convenience they provide to consumers.
Furthermore, on-premises sales include hotels, restaurants, bars, commercial stores, and liquor stores. These establishments offer a diverse selection of alcoholic beverages and contribute significantly to the market's growth. Consumers are attracted to these establishments due to their unique offerings and the social experience they provide. Grocery shops and online retailers are also significant contributors to the market's growth due to their convenience and wide range of options.
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The off-trade segment was valued at USD 202.10 billion in 2018 and showed a gradual increase during the forecast period.
Our market researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
New product launches is the key driver of the market. The market in the US is witnessing significant growth due to the introduction of innovative products that cater to the changing preferences of consumers. These product launches not only boost market growth but also provide the companies with a competitive edge. Wine lists continue to evolve with the introduction of craft beer, premium spirits, and artisanal spirits. High disposable income and Western lifestyle trends have led to an increase in alcohol consumption, with consumers showing a preference for higher alcohol content in their beverages.
Furthermore, the market for distilled spirits, including whiskey and vodka, remains strong, while premium beer and dark spirits are gaining popularity. Hard seltzer, a relatively new entrant, has also captured a significant market share, especially among young adults. These trends are expected to continue driving the growth of the alcoholic beverages market in the US during the forecast period.
The new packaging formats is the upcoming trend in the market. The Alcoholic Beverages Market in the US is witnessing a significant trend toward innovative packaging solutions. companies are introducing unique labels and formats to capture the attention of consumers, particularly young adults with high disposable income. This Western lifestyle trend is driving the demand for premium products, including Wine Lists, Craft Beer, and Premium Spirits.
Furthermore, ethanol-based beverages, such as Distilled spirits like Whiskey and Vodka, are experiencing increased consumption due to their high alcohol content. In response, suppliers are offering Dark spirits and Artisanal spirits in Tetra packs, PET bottles, bag-in-box, and metal cans. These packaging formats are popular due to their lightweight nature, ease of on-the-go consumption, and convenience for outdoor activities.
The campaigns against alcohol consumption is a key challenge affecting the market growth. The market in the US is experiencing significant growth due to the rising preference for Wine Lists, Craft Beer, Premium Spirits, and other high-end alcoholic beverages among consumers with high disposable income. Western lifestyle trends, including socializing and entertainment, continue to drive alcohol consumption. Ethanol-based beverages, including Distilled spirits like Whiskey and Vodka, and Dark spirits, are popular choices due to their higher alcohol content. Moreover, the artisanal spirits and Premium beer segments are witnessing a rise in demand due to the growing trend towards authentic and locally produced beverages. However, the market faces challenges from increasing campaigns against alcohol consumption due to health concerns.
Furthermore, organizations such as the Pan-American Health Organization (PAHO) are raising awareness about the negative impacts of alcohol, including liver diseases, cancer, cardiovascular problems, and tuberculosis. The growing incidence of alcohol abuse and accidents, particularly among young adults, is a significant concern, leading to regulatory measures and social pressure against excessive alcohol consumption. The market for low-alcoholic beverages like beer and Hard seltzer is also experiencing a negative impact due to the ongoing campaigns.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Asahi Group Holdings Ltd: The company offers alcoholic beverages such as Asahi Super Dry beer, Peroni Nastro Azzurro beer, and Pilsner Urquell beer.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The alcoholic beverages market in the US is a significant industry, encompassing various categories such as beer, wine, and spirits. The production of these beverages involves the fermentation of grains, berries, sugars, and fruits. Beer, with its low to medium alcoholic content, is the most consumed alcoholic beverage, made from grains through a process of brewing. Wine, known for its diverse flavors derived from grapes, has a high alcoholic content. Spirits, including unflavored and flavored options, undergo distillation for a higher alcoholic content. The market offers a wide range of alcoholic beverages in various categories, catering to different consumer preferences.
Furthermore, these beverages are available in various packaging materials like plastic bottles, glass bottles, and tins. The distribution channel includes modern trade, convenience stores, specialty stores, online retailers, hotels, restaurants, bars, commercial stores, on-premises, liquor stores, and grocery shops. Customer attraction is driven by the diverse selection of flavors, alcoholic content, and packaging.
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Market Scope |
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Report Coverage |
Details |
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Page number |
140 |
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Base year |
2023 |
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Historic period |
2018-2022 |
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Forecast period |
2024-2028 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 2.09% |
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Market Growth 2024-2028 |
USD 37.5 billion |
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Market structure |
Fragmented |
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YoY growth 2023-2024(%) |
2.03 |
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Key companies profiled |
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 dynamics |
Parent market analysis, market growth inducers and obstacles,market forecast , fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
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Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
We can help! Our analysts can customize this market research report to meet your requirements Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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