A surge in the number of young drinkers, a rise in disposable income, and increased demand for premium products drive the growth of the bev/al industry, according to Allied Market Research. But the prevalence of nonalcoholic beverages and rise in health concerns are seen slowing growth. On the other hand, significant developments related to honey-derived products, which are used as an alternative to alcoholic beverages, would create new pathways for the market players.
Beer segment to remain dominant, distilled spirit segment to grow the fastest by 2025. The beer segment contributed more than one-third of the total market share in 2017 and is expected to remain dominant throughout the forecast period. This is attributed to the surge in population of young drinkers and rise in disposable income.
However, the distilled spirit segment would grow at the fastest CAGR of 2.3% from 2018 to 2025, owing to boom in premium whiskey consumption and changes in consumer preferences. The report also analyzes wine and other types of alcoholic beverages.
Supermarket to retain its lion’s share in terms of revenue by 2025. The supermarket segment accounted for more than one-fourth of total market share in 2017 and will maintain its dominant position by 2025, owing to rapid urbanization and availability of products at a low cost. The internet retailing segment is expected to grow at the fastest CAGR of 4.3% from 2018 to 2025. This is due to benefits of online purchasing such as convenience, ease of payment, and large product base. The other distribution channels discussed in the research include liquor stores, convenience stores, on premises, and grocery shops.