Market Trends of Premium Alcoholic Beverages Industry
This section covers the major market trends shaping the Premium Alcoholic Beverages Market according to our research experts:
Craft Beer Gaining Importance
The rising health awareness among people and the promoted inclusion of functional and natural ingredients offer more excellent opportunities for craft beer in the premium alcoholic beverage market as it is less expensive than its high-alcohol counterparts, with 2.8% ABV. The demand for craft beer is growing faster in emerging countries like India, China, Indonesia, and Singapore. The growing demand for premium alcoholic beverages is considered one of this market's primary drivers. Additionally, due to the socializing trends, the rising popularity of brewpubs and taprooms among millennial consumers is expected to support the speedy expansion of craft beers globally. New breweries are popping up worldwide, and significant players are keen on developments, offering innovative craft brew and lager varieties to differentiate themselves from competitors to meet the growing consumer demand, causing the sector to grow. For instance, in 2021, Coca-Cola FEMSA announced the acquisition of The Rezopolis, a Brazilian beer brand, to obtain access to the market of Brazilian Craft Beer.
Craft beers contain a CBD invention, a non-psychoactive component of the cannabis plant. Breweries like The Long Trail Brewing Company in Vermont have begun producing IPAs and APAs in limited quantities that are brewed using hemp oil. Customers are gravitating to CBD-infused beers because they are relatively low in calories, and the CBD lessens the bitterness of the beer's hops, enhanced by terpenes' citrus flavors. Efforts by alcoholic beverage manufacturers to strengthen distribution channels and extension of purchase channels, such as online stores, and convenience stores, are also contributing substantially to the growth of the premium alcoholic beverages market.
Asia-Pacific to Witness Fastest Growth in the Market
Asia-Pacific is witnessing significant growth in market share in the premium alcoholic beverages market globally. The region includes a sizeable millennial consumer base. It encourages vital players to expand their geographical presence and increase their consumer base, supporting the premium alcoholic beverages market growth in the region. The variety of flavors used in spirits, beer, cider, and wine with a tint of fruits, botanicals, herbs, chocolates, and spices, fabricate a unique texture and taste in alcoholic beverages to fulfill Asian customers' requirements as they prefer variation in premium alcoholic beverages. China holds a significant share of the premium alcoholic beverage market in Asia owing to its augmented exposure to western culture and lifestyle and rising suspicion of domestic liquor. It is increasing the trend of consuming premium alcoholic beverages in the region. For instance, beer is the most consumed alcoholic beverage. According to the National Bureau of Statistics of China, in August 2022, beer production in China was about 3.93 million KL. The number increased by about 12% compared to the same period of the previous year, which amounted to around 4.22 million KL.
In addition, the major players operating in the market are expanding their product portfolios, with strategic acquisitions of breweries, to spread their footprints across the world and tap the premium alcoholic beverage market. For instance, in November 2022, the third-largest Indian IMFL (Indian-made Foreign Liquor) company in India, Allied Blenders and Distillers (ABD), solidified plans to acquire three brands in the semi-premium and premium whisky segment. It launched an aggressive growth strategy to expand its reach in the rapidly growing Indian alcohol market. Such factors are expected to attract consumers and raise the consumption of alcoholic beverages in the region.
