The global beverage alcohol industry experienced a year of contrasts in 2024, according to new data released by IWSR, the world’s leading authority on beverage alcohol market data and insights. While the total global volume of beverage alcohol consumption declined by 1%, the overall market value showed a modest increase of 1%. This nuanced performance reflects shifting dynamics across different regions and categories within the industry, driven by changing consumer behaviors, economic conditions, and emerging market trends.
Alongside the 2024 annual data release, IWSR announced two major product launches designed to equip industry stakeholders with enhanced forecasting capabilities and deeper insights into the on-trade consumption channel. These new tools — the Global Forecast Suite and On-Trade Value data — promise to provide unprecedented visibility into future market developments and pricing dynamics in hospitality venues across key global markets.
Introducing the Global Forecast Suite and On-Trade Value Data
The newly unveiled Global Forecast Suite extends IWSR’s forecasting horizon from previous shorter-term outlooks to a comprehensive ten-year projection. This expansion provides a longer-term view of volume and value trends across the world’s leading beverage alcohol markets. IWSR’s forecasts suggest that over the next decade, the global beverage alcohol industry will experience growth amounting to an estimated $34 billion in value, underscoring the significant opportunities ahead despite near-term volume declines.
The second new product, the On-Trade Value data, offers what IWSR describes as the “first ever cross-market view” of beverage alcohol value generated from on-trade venues. The on-trade channel — including bars, restaurants, hotels, and other hospitality venues — has traditionally been one of the most opaque areas in beverage alcohol analytics, due to the complexities in pricing and consumer behavior. By providing transparent price-to-consumer value insights across twenty key global markets, this data allows manufacturers, distributors, and operators to better understand the profitability and value trends within this critical sales channel.
Regional Highlights: India and Brazil Lead Growth
Among the diverse global markets analyzed in the 2024 data, India stood out as a particularly robust growth story. The country posted an impressive increase of over 5% in total beverage alcohol (TBA) volume during 2024, accompanied by an even stronger 9% rise in market value. This growth was broad-based across beverage categories but was especially prominent in beer and whisky segments. The expansion of India’s middle class, rising disposable incomes, and evolving consumer preferences toward premium and aspirational brands are key factors driving this surge.
Brazil also showed encouraging signs of growth, albeit at a more moderate pace. Total beverage alcohol volume in Brazil increased by just over 1% in 2024, while the market’s value soared by 5%. Certain sectors, including premium beer, ready-to-drink (RTD) beverages, and brandy, contributed significantly to this positive trend. The Brazilian market continues to benefit from urbanization, changing lifestyles, and increasing demand for premium and convenient beverage options.
No-Alcohol Segment Maintains Momentum
One of the standout trends within the global beverage alcohol landscape in 2024 was the continued strong growth of no-alcohol beverages, reflecting shifting consumer attitudes toward health, wellness, and moderation. No-alcohol beer volumes climbed by 9% worldwide, a rate of growth that signals this segment is on the cusp of a major milestone.
IWSR forecasts that no-alcohol beer will surpass ale to become the second largest beer category globally by volume within the current year. This anticipated milestone marks a significant shift in beer consumption patterns and highlights the increasing acceptance and mainstream appeal of no- and low-alcohol alternatives. This trend is supported by a combination of factors including improved product quality, broader distribution, and more sophisticated marketing campaigns targeting health-conscious consumers without compromising on taste or social experiences.
Industry Insights: Developing Markets Driving Future Growth
Emily Neill, Chief Operating Officer at IWSR, commented on the shifting dynamics, emphasizing that the momentum in beverage alcohol growth is increasingly concentrated in developing markets. She noted, “Beverage alcohol growth momentum has decisively shifted towards developing markets. Our new Global Forecast Suite really lays bare the extent of the coming change, as the combination of demographic changes, shifting economic growth patterns, and the long-run moderation trend in developed markets take full effect.”
Neill’s observation highlights a fundamental realignment in the global beverage alcohol industry’s growth drivers. Developed markets, traditionally the main engines of consumption volume and value, are experiencing a plateau or even decline due to factors such as aging populations, increased health awareness, and shifting social norms around alcohol consumption. In contrast, emerging economies with expanding populations, rising incomes, and changing lifestyles present new opportunities for market expansion and premiumization.
Broader Trends Shaping the Industry
The global beverage alcohol sector in 2024 reflects a complex interplay of macroeconomic and sociocultural forces that influence both consumption volume and value. Some of the key trends and themes shaping the industry include:
- Premiumization: Consumers worldwide are increasingly seeking higher-quality, premium, and craft products, driving up value even where volumes may be flat or declining. This trend is particularly evident in categories such as whisky, premium beer, and craft spirits.
- Health and Wellness: The growing focus on health and wellness is fostering demand for no-alcohol and low-alcohol products, as well as beverages with natural or organic ingredients. This shift is prompting innovation and diversification across many segments.
- Demographic Shifts: Population growth, urbanization, and younger consumer cohorts in developing markets are expanding the base of beverage alcohol consumers, especially in categories like beer and RTDs.
- On-Trade Channel Evolution: The hospitality sector continues to evolve with new pricing models, premium experiences, and consumer expectations, making transparent on-trade value data an invaluable resource for industry participants.
- Sustainability and Responsibility: Increasing awareness of sustainability and social responsibility is influencing both product development and marketing strategies, with consumers favoring brands that demonstrate ethical practices and environmental stewardship.
