Canned Alcoholic Beverages Market: Risk Analysis and Market Challenges
The Global Canned Alcoholic Beverages Market is Primed for Growth by Rising Millennial Preferences
Canned alcoholic beverages are ready-to-drink beverages that are packaged and sealed in aluminum cans. They provide consumers with the convenience of drinking alcohol anywhere due to their portable format. Canned wine, cocktails, and beer have gained massive popularity in recent years as they allow for hassle-free transport and consumption. The growing demand for on-the-go consumption trends and premiumization of canned drinks has boosted the canned alcoholic beverages market.
Canned alcoholic beverages are ready-to-drink beverages that are packaged and sealed in aluminum cans. They provide consumers with the convenience of drinking alcohol anywhere due to their portable format. Canned wine, cocktails, and beer have gained massive popularity in recent years as they allow for hassle-free transport and consumption. The growing demand for on-the-go consumption trends and premiumization of canned drinks has boosted the canned alcoholic beverages market.
The Global Canned Alcoholic Beverages Market is estimated to be valued at US$ 7.94 Billion in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the canned alcoholic beverages are Diageo plc, Brown-Forman, Pernod Ricard, Bacardi Limited, Suntory Holdings Limited, Asahi Group Holdings, Ltd., Anheuser-Busch InBev, E. & J. Gallo Winery, Constellation Brands, Inc., Treasury Wine Estates, Barefoot Cellars, and Kona Brewing Co.
The canned alcoholic beverage market is growing due to rising demand for convenience food and drinks from millennials and generation Z. These demographics prefer ready-to-drink and on-the-go format beverages. Growth in social media marketing by key brands is further fueling the demand.
Major companies are expanding their global footprint by launching more products in international markets like Asia Pacific and Latin America. New innovations including spiked seltzers, crafted cocktails, and premiumization of existing products is further driving the canned alcoholic beverages market.
Market key trends
One of the key trends driving the canned alcoholic beverages market is rising demand for low and no-alcohol canned beverages from health-conscious consumers. Many key brands have launched low-alcohol options and no-alcohol spirits like 'spiritless spirits' to cater to this growing consumer base. Ready-to-drink hard seltzers containing around 5% alcohol are also gaining huge popularity. Additionally, the premiumization trend of canned cocktails in attractive package designs is attracting millennial consumers looking for convenience and premium drinking experience.
Key Takeaways
Key players operating in the canned alcoholic beverages are Diageo plc, Brown-Forman, Pernod Ricard, Bacardi Limited, Suntory Holdings Limited, Asahi Group Holdings, Ltd., Anheuser-Busch InBev, E. & J. Gallo Winery, Constellation Brands, Inc., Treasury Wine Estates, Barefoot Cellars, and Kona Brewing Co.
The canned alcoholic beverage market is growing due to rising demand for convenience food and drinks from millennials and generation Z. These demographics prefer ready-to-drink and on-the-go format beverages. Growth in social media marketing by key brands is further fueling the demand.
Major companies are expanding their global footprint by launching more products in international markets like Asia Pacific and Latin America. New innovations including spiked seltzers, crafted cocktails, and premiumization of existing products is further driving the canned alcoholic beverages market.
Market key trends
One of the key trends driving the canned alcoholic beverages market is rising demand for low and no-alcohol canned beverages from health-conscious consumers. Many key brands have launched low-alcohol options and no-alcohol spirits like 'spiritless spirits' to cater to this growing consumer base. Ready-to-drink hard seltzers containing around 5% alcohol are also gaining huge popularity. Additionally, the premiumization trend of canned cocktails in attractive package designs is attracting millennial consumers looking for convenience and premium drinking experience.
Porter’s Analysis
Threat of new entrants: Low barrier to entry as canned alcoholic beverages require standard packaging facilities but established brands have an advantage.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes but demand for convenient packaging favors established brands.
Bargaining power of suppliers: Suppliers of raw materials and packaging cans have moderate bargaining power due to availability of alternatives and dependence of manufacturers on consistent supply.
Threat of new substitutes: Threat from substitutes like alcoholic drinks in bottles or draught is moderate due to customer demand for convenience and popularity of canned format among new drinkers.
Competitive rivalry: Intense as major players compete by expanding geographic reach, product lines and using marketing campaigns to boost brands.
North America dominates the canned alcoholic beverages market holding around 35% value share in 2024 owing to high consumption rate of beers and premixed cocktails in cans along with innovation. The USA is the major revenue contributor in the region due to growing Demand from millennials for convenient on the go drinking options.
Asia Pacific is expected to witness fastest growth during the forecast period owing to rising incomes, urbanization, warm climate favoring consumption of canned beer and rising trend of socializing outdoors. China is expected to emerge as the major growth engine in the region supported by expanding distribution channels for imported brands and local manufacture of canned alcoholic drinks.
Geographical Regions: North America dominates the canned alcoholic beverages market holding around 35% value share in 2024 owing to high consumption rate of beers and premixed cocktails in cans along with innovation. The USA is the major revenue contributor in the region due to growing Demand from millennials for convenient on the go drinking options.
Asia Pacific is expected to witness fastest growth during the forecast period owing to rising incomes, urbanization, warm climate favoring consumption of canned beer and rising trend of socializing outdoors. China is expected to emerge as the major growth engine in the region supported by expanding distribution channels for imported brands and local manufacture of canned alcoholic drinks.
