We’ve all been on a bumpy ride as we navigated the COVID-19 pandemic. But despite upended consumer behavior and the overall retail environment—the Alcoholic Beverage Industry did not experience a drop in sales like many industries did. And, with the availability of vaccines, Americans are ready to get out to bars and backyards to crack open a cold one with their crew. Read our BevAlc Industry Trends report below or download the PDF version here to save or share: Alcohol Industry Trends Reports (PDF) The three sections in both formats are:
1) The Alcohol Industry Landscape
2) 3 Key Trends in the Alcoholic Drinks Industry
3) BevAlc Industry Marketing Best Practices
Revenue in the Alcoholic Drinks market amounted to US $249,088m in 2021. The market is expected to grow annually by 9.06% (CAGR 2021-2025).
65% of Americans say they drink alcoholic beverages at least on occasion. Their preferred type of beverage:
- Wine 30%
- Beer 38%
- Spirits 29%
The market's largest segment is Beer with a market volume of US $109,028m in 2021.
During COVID-19, alcohol consumption increased across all generations. From August 2019 to 2020, frequency of alcohol consumption increased:
- Gen Z 25%
- Millennials 28%
- Generation X 29%
- Boomers 4%
While beer remains the overall preferred drink for Americans, wine and spirits are nearly tied for second place, in part due to growing bargain wine brands and spirit flavor varieties.
The Beer Market
The beer market saw overall revenue of $94.1 billion in 2020, down from $116 billion in 2019. The craft beer movement now controls 24% of the beer industry, but lost 22% of sales in 2020, with revenue of $22.2 billion.
In 2019, the global hard seltzer market was valued at $4.4 billion, with a projected compound annual growth rate (CAGR) of 16.2% from 2020 to 2027.
Online Sales of alcohol drastically increased during stay-at-home orders and restaurant/bar closures in 2020, with $5.6B in sales—a 115.4% increase from $2.6B in online alcohol sales in 2019.
Gifting rose to nearly 20% of all sales on Drizly in the month of December, double the amount of share in December of 2020.
The developments we’re seeing underline the need for some serious marketing adaptations. The following guide will give you a better understanding of some of the key trends that are shaking and stirring the alcohol business, and the tips you’ll need in order to thrive. See also this post on alcohol marketing strategies.