Global beverage alcohol market set to grow by US$34B in 10 years – IWSR
Strong growth in India, Brazil, and South Africa is expected to drive long-term expansion in the global beverage alcohol sector.
GLOBAL – The global beverage alcohol market is projected to grow by US$16 billion in value over the next five years, and by US$34 billion over the next decade, according to the latest forecasts by IWSR Drinks Market Analysis.
The projections, released as part of IWSR’s 2024 Global Forecast Suite, indicate 10 years of steady value growth, despite ongoing political and economic volatility.
The report underscores a shift in momentum toward developing markets, reflecting demographic changes, shifting income levels, and a moderation trend in developed economies.
In 2024, global beverage alcohol volume declined by 1%, yet value increased by 1%, demonstrating a trend toward premiumisation. Several emerging markets delivered strong performance, offsetting declines in mature regions.
Developing Markets Drive Growth
India led the way, recording a 6% growth in volume and 9% in value across all beverage alcohol categories, particularly in beer and whisky. This growth positions India as the largest engine of value expansion for the sector over the next 10 years.
Brazil’s total beverage alcohol market grew just over 1% in volume, while value surged by 5%, driven by demand for premium beer, ready-to-drink beverages (RTDs), and brandy.
Similarly, South Africa showed robust growth, with 3% increase in volume and a 10% rise in value, attributed largely to beer and RTDs, including wine-based RTDs, which have gained popularity as affordable and trendy alternatives to traditional wine.
Global Category Trends
On a global scale, non-alcoholic drinks continued to post strong gains in 2024. Non-alcoholic beer volume rose by 9%, with IWSR forecasting it will surpass ale as the second-largest beer category by volume this year.
RTDs maintained global momentum, growing 2% in volume and nearly 5% in value. While hard seltzers declined, cocktails, long drinks, and hard tea—which grew 31% in volume in the US—helped buoy the category.
According to Emily Neill, IWSR’s chief operating officer, the latest forecasts reflect a fundamental shift. “Beverage alcohol growth momentum has decisively shifted towards developing markets, with India likely to be the biggest engine of growth for the next decade, followed by Brazil and Mexico,” she said.
IWSR’s senior economist Martin Belchev added that economic expansion in developing markets will elevate disposable incomes, fuelling further growth.
He also noted that global uncertainty will persist, calling for enhanced scenario-planning features in the next phase of IWSR’s forecasting suite, scheduled for release in late 2025.
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