Alcopop Market

Alcopop Market Outlook (2023 to 2033)

The global alcopop market size stands at US$ 4.5 billion in 2023. As per Fact.MR, global demand for alcopops is estimated to reach a market value of US$ 8.1 billion by the end of 2033, increasing at a CAGR of 6% between 2023 and 2033.

Alcopops are flavored alcoholic beverages that come with a relatively low content of alcohol. Different malt beverages are included in alcopops with a variety of fruit juices and flavorings, and a base of beer, vodka, whiskey, and others.

• Europe accounted for over 35% share of the global market and is expected to continue being the leading regional market through 2033.

Worldwide demand for alcohol is increasing due to the rising consumption of hard liquor or hard alcohol that is fortified with the inclusion of various fruit juices and some other flavors. Moreover, growing consumption of malt liquor is also predicted to contribute to generating lucrative opportunities for suppliers of alcopops.

Rising attention to R&D activities to produce fortified and innovative products in various spirit assortments, including malt liquor, is expected to generate lucrative opportunities for players. Alcopops are also called ready-to-drink beverages, malt alcoholic beverages, premium packaged spirits or pre-packaged spirits, alcoholic energy drinks, pre-mixed caffeinated alcoholic beverages, and more.

Growth in the alcopop market is owing to the growing demand for flavored alcoholic beverages around the world. Rising disposable income of people can lead to their increased spending capacity on different lifestyle products, including food & beverages, etc. The increasing popularity of craft beers and flavored beers among consumers around the world is predicted to contribute to generating significant growth opportunities for players.

Store-based sales of alcopops compared to non-store-based sales are anticipated to account for a substantial share of total revenue. However, the implementation of stringent regulations on the consumption of alcoholic beverages is estimated to restrict the adoption of alcopops around the world.

Increasing cases of alcohol abuse among teenagers owing to the increasing consumption of alcopops is expected to adversely impact their demand. Moreover, the consumption of alcopops is banned in some countries due to religious and cultural reasons, which is forecasted to limit their sales in the coming decade.

A detailed analysis of opportunities, weaknesses, and strengths of key players operating in the industry is provided by the market research report published by Fact.MR, a provider of market research and competitive intelligence. According to the report, increasing recognition of certain rare flavors in alcoholic and non-alcoholic beverages is predicted to stimulate the demand for alcopops.

Report Attributes	Details
Alcopops Market Size in 2023	US$ 4.5 Billion
Forecasted Market Value (2033)	US$ 8.1 Billion
Global Market Growth Rate (2023 to 2033)	6% CAGR
Revenue Share of Europe (2022)	35.1%
Key Companies Profiled	Asahi Group Holdings, Ltd. Halewood International Limited Suntory Holdings Limited Mike’s Hard Lemonade Co. United Brands Company, Inc. Bass Brewery Pabst Brewing Company Molson Coors Brewing Company

Which Factors are Opening Up New Opportunities for Suppliers of Alcopops?

“Increasing Recognition of Alcopops among Young Drinkers”

Growth opportunities in the target industry are attributed to the rising consumption of alcopops by youngsters.

• Half of the teenagers between 17 and 18 years of age acknowledged that they have consumed alcopops, according to the American Medical Association.

Malt liquor is available in smooth flavor, which makes a good canvas for some additional constituents and flavors. Alcopops contain comparatively lesser alcohol content, which is estimated to serve as one of the key factors to attract youngsters. They are specifically produced for young drinkers, who are termed as ‘entry-level’ drinkers. Moreover, manufacturers of alcopops utilize attractive packaging materials to attract youth. Innovative marketing approaches are also implemented to increase sales of alcopops among youngsters.

“Proliferating Innovations of Alcopops”

Alcopops are recognized as the favorite beverage among the young generation apart from the consumption of malt liquor. At present, WKD is coming into the market with various new flavors. WKD Pink Gin is a sophisticated mix of gin and raspberry flavors. Meanwhile, lemon and raspberry lemonade are part of new flavors, which contribute to the well-recognized collection of summer drinks. WKD Dark Fruit, Berry, Iron Brew, and Blue are some other new flavors proliferating innovations, in the target industry.

Why is Demand Growth for Alcopops Being Restricted to Some Extent?

“Ban on Alcopops in Some Countries and Growing Cases of Alcohol Abuse Through Excessive Consumption”

There is a significant increase in the rising cases of alcohol abuse around the world. The excessive consumption of alcopops accounted for the rising cases of alcohol abuse among 15-16 years teenagers. Alcohol abuse is closely related to adolescent suicide. Moreover, teenagers who consume alcopops are more prone to carry out suicide than teenagers who do not consume them.

After iced tea, alcopops are the most typically consumed type of Ready To Drink (RTD) around the world. Alcopops are banned in some countries due to cultural and religious reasons. Thus, these issues related to the consumption of alcopops are adversely impacting their demand and thus restraining growth opportunities.

What Initiatives are New Market Entrants Predicted to Take?

“Manufacturing of Alcopops with Lower Alcohol Content”

New companies trying to enter the alcopop industry should take initiatives to manufacture beverages with lower alcohol content. These low-alcoholic beverages are predicted to cause comparatively fewer adverse impacts compared to already existing drinks. These newly produced alcopops can be served in attractive packaging to attract young drinkers.

Which Regional Market is Anticipated to Generate Lucrative Opportunities for Industry Players?

“High Consumption of Fruit-flavored Alcopops by Europeans”

Europe, Asia Pacific, North America, Latin America, and the Middle East & Africa are some prominent regions, which are contributing to increased demand for alcopop drinks. Europe held more than 35.1% of the total revenue share in 2022. The soaring intake of various types of fruit-flavored alcopops by Europeans is contributing to regional market growth.

The young crowd in European countries is consuming alcopops at a significant rate. The sweet taste of alcopops concealing the bitter taste of alcohol is expected to propel their demand among youngsters.

Country-wise Insights

How Opportunistic is the Market in Japan for Suppliers of Alcopops?

“Product Innovations Opening Up Novel Growth Opportunities”

The easy availability of alcoholic beverages through online retail platforms and store-based distribution channels is estimated to open up new growth opportunities for suppliers of alcopops in Japan. Product innovations are also predicted to serve as one of the noteworthy factors to bolster demand for alcopops in Japan.

For instance :

• Coca-Cola, in 2018, announced to launch of an alcopop product in Japan for the first time, which is a chuhai (Japan) beverage. Through this launch, Coca-Cola Japan successfully entered the alcohol beverage market

What are the Prospects for Alcopop Sales in the United States?

“Presence of Key Manufacturers of Alcopops in the United States”

The presence of prominent operating players in the United States along with the introduction of various youth-oriented products is projected to bolster sales of alcopops. Rising preference for different types of alcoholic beverages among youngsters is predicted to boost demand for alcopops in the United States.

Why is Germany Catching the Attention of Suppliers of Alcopops?

“Increasing Inclination to Consume Flavored Alcoholic Beverages”

In Germany, a wide variety of consumers are drinking flavored alcoholic beverages. Alcopops are estimated to remain an integral part of the beverages market due to their ability to offer different tastes and experiences for young consumers.

Interest in flavored alcoholic beverages is developing in Germany. This is mainly coming from breweries, which are making attempts to diversify their product range against the declining sales of beer. Therefore, this increasing inclination to consume flavored alcoholic beverages is forecasted to drive noteworthy opportunities across the market.

Category-wise Insights

Is Demand for Rum-based Alcopops Growing as Fast as Expected?

“Rising Traction for Rum-based Alcopops across Regions”

Based on base type, the industry is classified into beer, rum, scotch, whiskey, vodka, and others. Among these, rum-based alcopop is estimated to hold a noteworthy share of the total market revenue. The dominance is attributed to the rising consumption of rum-based alcopop in numerous countries around the world. Bacardi Breezer is one of the most recognized rum-based alcopops.

Increasing application of different fruit flavors, including pineapple, peach, lemon, and others premixed as a cocktail in Bacardi Rum is estimated to boost sales of rum-based alcopops. In addition, increasing recognition of vodka-based mixed beverages and vodka-based alcopops is predicted to contribute to rising demand for vodka-based alcopops. Their demand is expected to expand at a CAGR of 4.7% from 2023 to 2033.

Which Distribution Channels are Widely Used to Ensure Convenient Delivery of Alcopops?

“High Preference for Supermarkets Due to Availability of Wide Variety of Alcopops”

For the quick and safe delivery of alcopops, store-based and non-store-based distribution channels are used prominently. The store-based segment is anticipated to progress at a CAGR of 4.9% from 2023 to 2033. Soaring use of hypermarkets and supermarkets with dedicated grocery shelves is predicted to attract consumers. The availability of space to stock up on various assortments of alcoholic products, including malt liquor and alcopops from different brands under one roof is predicted to further bolster growth opportunities.

Consumers, in recent years, are inclined to opt for non-store-based distribution channels to purchase alcopops due to the easy availability of alcohol products at online stores. Amazon, eBay, and other e-Commerce platforms are used to purchase alcopops. It is a convenient way to buy alcopops as products are available at consumers’ doorstep.

Key Market Players

Key providers of alcopops around the world are investing at a significant rate to improve the effectiveness of systems, which are utilized for supply chain management. Players are estimated to invest in new developments to provide more attractive and innovative alcopops. Respective governing bodies have implemented certain regulatory frameworks to minimize or reduce environmental impacts. Initiatives are also taken to ensure product quality and product standards.

Product innovations and other strategies are adopted by key suppliers of alcopops to generate novel growth opportunities.

For instance :

• Diageo, in April 2021, launched a new ready-to-drink Gordon’s can. This drink comes with a 0.0% alcohol-free spirit, which is blended with a tonic and is good for an on-the-go summer occasion. It is accessible in the United Kingdom and came after the introduction of the alcohol-free substitute, Gordon’s in December.

Key players in the alcopops market are Asahi Group Holdings, Ltd., Halewood International Limited, Suntory Holdings Limited, Mike’s Hard Lemonade Co., United Brands Company, Inc., Bass Brewery, Pabst Brewing Company, and Molson Coors Brewing Company.

Segmentation of Alcopop Industry Research

• By Base Type :

  • Beer
  • Whiskey
  • Rum
  • Vodka
  • Others

• By Packaging Type :

  • Bottles
  • Cans
  • Others

• By Distribution Channel :

  • Store-based
    • Supermarkets/Hypermarkets
    • Specialty Stores
    • Convenience Stores
  • Non-store-based

• By Region :

  • North America
  • Europe
  • Asia Pacific
  • Latin America
  • Middle East & Africa