LONDON--(BUSINESS WIRE)--Technavio market research analysts forecast the alcohol beverages market in the US to grow at a CAGR of close to 4% during the forecast period, according to their latest report.
The market study covers the present scenario and growth prospects of the alcohol beverages market in the US market for 2017-2021. The report also lists beer, wine, spirits, and RTD, as the four major product segments, of which the beer segment accounted for close to 80% of the market share in 2016.
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Technavio analysts highlight the following three market drivers that are contributing to the growth of the alcohol beverages market in the US:
- Multiple uses of alcohol
- Growing online sales
- Merger and acquisition
Multiple uses of alcohol
Studies have shown that moderate consumption of some alcohol drinks helps to improve health issues. For instance, moderate consumption of wine can increase the average lifespan as compared to other drinks. Red wine can also reduce the cholesterol level and protect the heart from various diseases, because of the presence of anti-oxidants that prevent heart strokes by burning the fat in the arteries. Red wine is also used for personal grooming such as skin nourishment and anti-aging. It removes acne and helps the skin look younger. It also stimulates hair growth.
Brandy has similar properties like wine. It helps to reduce cholesterol levels in the heart and plaque build-up in the arteries. It also reduces the inflammation level in cardiovascular systems that helps to lower the blood pressure. It also has anti-aging properties and helps to fight cancer and to reduce cough and cold. Similarly, numerous benefits can be listed for moderate and controlled consumption of beer and whisky.
Growing online sales
According to Manjunath Reddy, a lead analyst at Technavio for alcoholic beverages research, “The internet is becoming a popular tool for sales and marketing activities in the alcohol beverage industry. It was the fastest-growing retail channel for alcohol sales in 2015. Online retailing has helped smaller business units like craft beer and craft spirits to expose their brands to a larger consumer base.”
The popularity of e-commerce-based retail and delivery systems like Drizly, MiniBar, Thristie, Drinkln, and other similar e-commerce websites is gaining mainly due to increasing availability of craft brands. However, vendors cannot sell alcohol beverages lawfully through the internet, unless they obtain a license to do so. To resolve this issue, the e-commerce sector needs to work with brick-and-mortar retail stores to verify the legal age for purchasing alcohol through an ID which is created, before the product is delivered.
The penetration of the internet in the US and hectic lifestyles of consumers are driving the market. Manufacturers are pushing the channel by coming up with offers such as free delivery, on bulk purchases, and incentives like cashbacks to attract consumers towards the channel.
Merger and acquisition
The recent years have seen several M&As that involved big brands. Low-interest rate, increasing consumption rate especially in the wine segment, and consolidation among distributors have been the key reasons promoting M&As. Other reasons that are increasing the number of merger and acquisitions are that it M&As help in expanding the product portfolio of the company and increase its consumer base. Collaboration has led vendors to focus better on product innovation and increase their profit margins.
“Bigger brands are acquiring breweries to introduce craft beer products and expand their product portfolio because consumers are showing greater interest in craft beer than traditional beer. Similarly, in other segments, companies are acquiring smaller distilleries and wineries to expand their product segments and introduce craft spirits,” says Manjunath.
Browse Related Reports:
- Global Organic Wine Market 2017-2021
- Global Scotch Whisky Market 2017-2021
- Global Low-Alcohol Beverages Market 2017-2021
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
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