Analytics Use Cases In Alcoholic Beverages Industry
The alcohol and wine beverages industry in the USA has grown to massive volumes - US $222,098m in 2020. The changing demographic trend has created a significant impact, and along with the deep technological inroads, they have completely changed the existing industry landscape.
In 2019, beer as a beverage accounted for an estimated 45 percent of the U.S. alcohol industry sales market. While the wine market has remained stable in recent years, the market share of beer has gotten smaller in favor of spirits.
Revenue in the Alcoholic Drinks market amounts to US$222,098m in 2020. The market is expected to grow annually by 7.9% (CAGR 2020-2023). Some more statistics ( source: Statista)
- The market's largest segment is the segment Beer with a market volume of US$101,847m in 2020.
- In global comparison, most revenue is generated in the United States (US$222,098m in 2020).
- In relation to total population figures, per person revenues of US$670.99 are generated in 2020.
While the total volume sales have dropped, revenues continue to rise. This is because the consumers today are drinking on fewer occasions than they used to do before. But when they drink, they tend to drink in larger quantities.
The millennials and Gen Z, who have only recently entered the legal drinking age, show vast differences in habits and preferences to that of the predecessor generations - and these differences become even more pronounced with regard to their drinking habits. At the same time, the baby boomer generation is fading out of the drinking demographic due to their old age and health concerns.
For example, while baby boomers are known for their brand loyalty - preferring a visit to the nearby cafe to choose brands, Millenials and GenZers do not - preferring instead more exotic and experimentations at home.
According to a survey, over 47% of Millennials said that they prefer drinking at home. Rising costs have a significant impact on the choices they make as well. And so do factors such as the number of calories, attractive packaging, etc.
This drinking habit has been aided by the rise of mobile applications that make it a breeze to order their favorite drink at the tap of a button - hence innovative companies are capitalizing on this trend by partnering with the delivery apps to have their product catalog listed. Brands are also launching keto-powdered drinks that cater to the health-conscious generation.