Beer accounted for a 74.58% share of the global alcoholic beverage market in terms of volume, Technavio, a London-based research firm, reports.
China, the US, Brazil, Russia, Germany, and Mexico were the leading beer markets in the world last year. Changing lifestyles and rising disposable incomes are some of the factors fueling the market’s growth in the developing markets of APAC such as India, China, and Vietnam.
In India, the beer market is likely to grow at a CAGR of more than 16% during the forecast period, the study says. Growing urbanization and a rising young population coupled with increased disposable income will fuel demand for beer among consumers. Technavio researchers estimated that the urban population in India will be about 590 million and 1 billion in China by 2030. In the U.S., per capita disposable income increased from $39,531 in 2014 to $41,355 in 2015.
Global wine market: second-largest segment
The global wine market is expected to grow steadily during the forecast period. Some of the major drivers in the market are increased wine consumption among women, increased focus on health, rise in the number of local wineries, and increase in the number of new launches in the market.
In 2014, the US had more than 7,300 wineries, and this number is increasing each year, providing consumers with innovative product offerings. In 2014, California, Florida, and New York were the top wine-consuming states in the US. In 2015, Constellation Brands launched its Prosecco brand of wines in India.
“Changing consumption patterns and the increasing amount of young consumers who are more inclined toward modern and new drinks than traditional drinks are increasing the demand for wine drinks. Although 29% of total wine consumers are millennials, they consume 34% of the total wine consumed in the world, which indicate that the younger population is fueling the growth of the wine market,” says Vijay.
Global spirits market: third-largest segment
The global spirits market accounted for a market share of 11.61% in 2015 and is expected to increase its market share during the forecast period. APAC was the largest shareholder in the global spirits market in 2015, with China being the largest market, followed by India. Imported spirits in the global spirits market are expected to grow at a faster rate than local spirits during the forecast period.
Technavio research analysts estimate that more than 25% of non-beer drinkers, especially women, prefer wine and spirits as they do not cause as much weight gain. In addition, the increased demand for flavored spirits such as vodka and tequila has seen vendors aggressively promoting their brands in the market.
The spirits market is growing at a steady rate due to major drivers in the market, including the shift in consumer preferences for spirits, increase in the preference for spirits among women, increase in health consciousness, and the association of spirits with lifestyle.