Alcohol consumption plays the most promising role in the social culture. It varies from every state, country, and region. Laws, which are regulating the production, sale, consumption and even the serving quantities of alcoholic beverages are different in each country. Presently, norms and traditions are unstable in the case of alcoholic beverages. Wide range acceptance of wine is mainly depending on the convenience offered in the packaging of alcoholic beverages. Expanding domestic breweries and wineries in North America are resembling the alcohol trade growth in this region. Additionally, increase in the demand for flavored alcoholic beverages, especially from U.S. consumers, is also boosting up the alcoholic beverages sales in this region. Consequently, the North America Alcoholic Beverages market valued at $397 billion in 2018 and is projected to grow at a CAGR of 4.7% over the forecast period 2019-2025.The report covers North America Alcoholic Beverages market size by type and applications,North America Alcoholic Beverages market share by top 5 companies and also the market share by start-ups during the forecast period.
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According to the U.S. Census Bureau, retailers handle almost two-thirds of the sales of wine, beer, and distilled alcoholic beverages. The rest of the distribution is engaged with wholesalers and distributors, restaurants, hotel, and food services. The U.S. Alcoholic manufacturing establishments especially wineries increased from 3,567 in 2015 to 3,604 in 2016, as stated by the U.S. Census Bureau, country business patterns. As of 2018, Ridge Vineyards Santa Cruz Mountains Monte Bello 2015 is elevated as the best American wine. Canned wine has been recognized as the fastest growing categories, which are driven by the millennial drinkers. But, currently, it holds a very less share among total wine sales. Thus, wine alcoholic beverages are growing at a faster rate among spirits and beer, with a CAGR of 5% over the forecast period.
The U.S. has been renowned to hold a dominating country-wide share of 64.1% in the North America alcoholic beverages market as of 2018. In 2016, the breweries count has been increased and reached 2,802 from 2,342 in 2015, in the opinion of U.S. Census Bureau. The National Beer Wholesalers Association and Tobacco Tax and Trade Bureau (TTB) states that, 10,115 permitted breweries are present in the U.S., till 2017. A total of 5,648 operating breweries are present in the U.S., as of 2017. In 2018, TTB has issued permissions to 1,252 new breweries. Thus, this growth in the alcoholic manufacturing establishments in the U.S. is reflecting positive demand for the North America alcoholic beverages market. The U.S. has become more popular than other American countries in the wine market. And also, it is acting as a home for 84 million regular wine drinkers. Engaged explorers, who are not only frequent wine drinkers but also highest spenders, they hold a share of 10% among U.S. regular wine drinkers. Senior bargain hunter’s accounts for nearly 26% share of the regular wine drinkers in the U.S. Alcohol brands in the U.S. can only get advertised using online platforms. So, 71.6% of the audience is practically estimated to be of the lawful purchase age.73.8% of the U.S. populous that is nearly 241.4 million considered under legal drinking age. According to the U.S. census statistics and beer shipment data, it is evident that each person of 21 years age is consuming nearly 26.5 gallons of beer and cider in 2018. Therefore, this rise in the beer consumption has resulted in the shipment of nearly 202.2 million barrels of beer from the U.S. beer industry in 2018. Consequently, it aids for an increment in North America alcoholic beverages market revenue.
North America Alcoholic Beverages Market Growth Drivers:
· Wine Imports: According to the International Trade center, annual growth in the wine import value has been recorded as 4% from 2017 to 2018, worldwide. The U.S. has accounted for a larger share of 18% wine imports on a global basis, which is valued at $4.7 billion in 2018. Furthermore, the U.S. has experienced a 5% annual growth in the import value of wine from 2017 to 2018. The above-mentioned data is reflecting the demand for wine in the U.S. and all over the world. Therefore, the rise in the wine import value mainly in the U.S has been influencing the North America alcoholic beverages market growth.
· Craft Beer: Continuously growing demand for the craft beer in the U.S. has been impacting the growth of the alcoholic beverages market in the North American region. Crave for craft beer has been peaked in this country, which has been inspired for the establishment of a huge number of breweries across this country. In 2018, nearly 7,000 breweries are operating in the U.S., which has led to a 5% rise in craft beer sales. Constant growth in the consumption of craft beer has been made to estimate for 1000 more breweries to establish by the end of 2019. Uninterrupted exploration of craft beer is bear a resemblance to the increase in a number of craft breweries in New York City. In 2012, there were only eight breweries and now it has been resulted with a 413% in craft breweries and reached to 43 breweries. As well, this rise has also an effective impact in the nation, a 16% rise in the craft beer breweries in the U.S.
· Online Alcohol Sales: Despite the legal challenges the growth in the online alcohol sales noted in the U.S. are driving the growth of the North America alcoholic beverages market. Only five states in the U.S. have given permission for direct shipping of spirits to the consumers. The stable growth of an alcohol delivery service namely Drizly has played a very crucial role in amplifying the online alcohol delivery revenue in the U.S. Maximum of the alcohol consumers are exploring e-commerce for convenience and affordability. In the U.S., online sales of alcoholic beverages are representing only 1% of the off-premise beverage alcohol sales, slowly they are growing at double-digit rates. Furthermore, increase in demand for beer, spirits, and wines online are mainly driving the U.S. beverage alcohol e-commerce.
· Premium Products: Rise in consumers, whose prominent choices for premium products such as Michelob Ultra are boosting the growth of the premiumization in the beer market. People who strive for quality stuff every time are highly preferring craft beers, premium beers, and hard alcohol as well.
The Major Players in this Market Include:
Anheuser-Busch InBev, Kittling Ridge Estate Wines & Spirits, Boston Beer Co. Inc., Diageo India, Heineken Holdings NV, Constellation Brands Inc., Kirin Holdings Company Limited, Bacardi Ltd, Corby Distilleries Ltd., and Beam Suntory Inc are the noticeable players which are operating in the North America alcoholic beverages market. These companies have been continuously concentrating on product launches, and acquisitions strategies to strengthen their portfolio of products and their presence in the alcoholic beverages market place.
Key Players Market Strategies:
o In 2017, E. & J. Gallo Winery (Gallo) acquired Napa Valley vineyard. This acquisition has made Gallo's to compete in the luxury wine segment. In addition to this, it also provided a significant opportunity to Gallo to continue making and selling of luxury wine offerings which include William Hill Estate, Orin Swift and Louis M. Martini.
o Anheuser-Busch InBev has introduced low-alcohol beer products in Canada along with Australia, South Africa and Europe.
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