Europe Alcoholic Beverage Market is expected to register a CAGR of 3.5% during the forecast period (2020-2025).
- Premiumization of the industry remains one of the major factors driving the alcoholic beverage market particularly spirits and wine. Leading players such as Diageo is increasingly making its move to dominate premium spirits under its brand Ciroc, Ketel One, and Smirnoff.
- Product innovation and economic growth are drawing the consumers to go for expensive alcoholic beverages. New product launches and innovations in alcoholic drinks are favoring the growth of the industry. Companies are launching innovative products because of changing consumer preferences.
Key Market Trends
Increased Demand for Craft Beer
The market growth is primarily boosted by the greater number of millennials showing interest in craft beers, seeking for a fresh and new taste, along with the soothing ambiance provided by the microbreweries and brewpubs. Additionally, factors, such as increasing demand for beer variants, per-capita consumption, and the number of associations focused on disseminating information about different beers, are expected to drive the market’s growth. The key players such as Anheuser-Busch In Bev is repositioning their strategies and bringing forward craft beers as an essential part of their growth plans, in order to supplement the sales. In 2018, AB In Bev reported the revenue of its craft and specialty brands as high as 18.3% when compared to the prior year.
Germany Dominates the Market
The alcoholic beverage market in Germany is driven by the long and hot summer and on the other, by various new product launches in trending categories. The healthy lifestyle megatrend has manifested itself in different ways, including rising demand for growth in natural wines and the increasing use of natural botanicals as gin ingredients. Supermarkets and internet retailing are preferred because of the extended product range, including a greater range of premium and craft alcoholic drinks and quality perception offered by supermarkets continued to persuade an increasing number of consumers to frequent this channel.
Europe alcoholic beverage industry is considered to be a consolidated market with few companies holding maximum market share. Product launches, followed by new mergers and acquisitions, partnerships and expansion are the most preferred strategies to strengthen the position in the market. Diageo, Bacardi, Heineken Holding NV, Pernod Ricard, and Anheuser-Busch InBev are the key players in the alcoholic beverage market.
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