Alcohol E-Commerce Global Market Report 2024

The alcohol e-commerce market size has grown rapidly in recent years. It will grow from $56.72 billion in 2023 to $65.72 billion in 2024 at a compound annual growth rate (CAGR) of 15.9%. Historical growth can be attributed to regulatory changes, shifts in consumer behavior, economic influences, marketing and advertising strategies, and the expansion of distribution networks.

The alcohol e-commerce market size is expected to see rapid growth in the next few years. It will grow to $120.61 billion in 2028 at a compound annual growth rate (CAGR) of 16.4%. Anticipated growth is attributed to the evolving regulatory landscape, ongoing changes in consumer behavior, global economic shifts, innovative marketing strategies, and the expansion of distribution channels. Key trends in this period encompass virtual tasting experiences, subscription and membership models, contactless delivery and pickup options, the adoption of blockchain for supply chain transparency, and the integration of social commerce within the industry.

The anticipated rise in alcohol consumption is poised to significantly drive the growth of the alcohol e-commerce market in the foreseeable future. Alcohol consumption involves the intake of beverages containing ethyl alcohol. In the realm of e-commerce, the sale of alcohol can stimulate impulse purchases, leveraging targeted advertising, promotional offers, and streamlined checkout processes. An illustrative example occurred in April 2023 when the Brewers Association, a US-based trade association, reported that the retail dollar value of the craft beer category in 2022 reached an estimated $28.46 billion. This valuation represented a substantial 24.6% market share and a 6% growth rate over the previous year. Consequently, the upsurge in alcohol consumption serves as a pivotal driver fueling the expansion and development of the alcohol e-commerce market, underlining the significant impact of increased consumer demand on the growth trajectory of this industry segment.

The anticipated growth in consumer purchasing power is expected to significantly propel the expansion of the alcohol e-commerce market in the foreseeable future. Consumer purchasing power denotes the financial capability of individuals or households to acquire goods and services based on their income and available financial resources. The alcohol e-commerce sector benefits from this increased purchasing power, particularly as consumers with higher disposable incomes demonstrate a preference for premium and specialized products. These individuals often opt for the convenience and extensive product range offered by online platforms. For instance, data from the US Bureau of Economic Analysis highlighted an upward trend in consumer spending, rising from $13,818 in January 2022 to $13,916 in July 2022 within the United States. This surge in consumer purchasing power signifies a growing potential for enhanced spending on goods such as alcohol through e-commerce channels. As individuals have more financial resources at their disposal, the alcohol e-commerce market stands to benefit significantly from increased consumer spending capacities, fostering its continued growth and development.

Strategic partnerships and collaborations represent significant trends gaining traction within the alcohol e-commerce market. Major players operating in this sector are actively engaging in partnerships to fortify their positions and enhance their foothold in the industry. An illustrative example took place in September 2022 when Thirstie, a prominent US-based provider specializing in e-commerce solutions for beverage alcohol brands, formed a strategic partnership with William Grant & Sons, a renowned UK-based global distiller and supplier, known for being a leading family-owned entity. This collaboration is aimed at leveraging combined resources to expand William Grant & Sons' global e-commerce strategy. Moreover, it is expected to provide consumers with enhanced digital access to the diverse portfolio offered by William Grant & Sons. Such strategic partnerships serve as pivotal tools for companies in the alcohol e-commerce market, allowing them to pool their strengths and resources to capitalize on market opportunities, broaden their reach, and cater more effectively to consumer preferences.

Prominent companies within the alcohol e-commerce market are placing a significant emphasis on developing technological innovations, particularly e-commerce sites, to attain a competitive advantage in the industry. An e-commerce site serves as an online platform, also known as an online store or web shop, where products or services can be bought and sold via the internet. A notable instance of this technological advancement occurred in November 2023 when DrinksOne, a UK-based distribution agency, introduced its E-Commerce Platform. This innovative platform facilitates access for both consumers and trade accounts, eliminating conventional intermediaries and potentially reducing costs. Such a development holds the potential to broaden the market scope, enabling a diverse array of new and exciting beverages to reach a more extensive audience. This move towards innovative e-commerce solutions has the capacity to democratize the drinks market by fostering greater accessibility and inclusivity for a wider range of products within the alcohol e-commerce landscape.

In November 2023, LQR House, a US-based marketing agency renowned for its focus on the spirits and beverage sector, successfully acquired cwspirits.com for an undisclosed sum. This strategic acquisition empowers LQR House to broaden its portfolio, strategically placing a diverse array of brands to cater to a dedicated audience. The primary objective behind this move is to enhance sales on the platform and leverage the established position of cwspirits.com The website, based in the US, is well-established in the realm of wine and spirits e-commerce.

Major companies operating in the alcohol e-commerce market report are Costco Wholesale Corporation, Anheuser-Busch InBev SA/NV, Heineken N.V., Uber Technologies Inc., Diageo PLC, Asahi Group Holdings Ltd., Kirin Holdings Company Limited, Pernod Ricard SA, The Molson Coors Beverage Company, Carlsberg Breweries A/S, Constellation Brands Inc., Vinosity Inc., Total Wine and More, Drizly, BevMo Inc., Naked Wines PLC, Wine.com LLC, Vintage Wine Estates, WineAccess Inc., ReserveBar Express Corp., Flaviar, E-vino Comércio de Vinhos S.A, Master of Malt Ltd., Cask & Barrel Ltd., Craft Beer Club LLC, Bright Cellars, Vivino Inc., Underground Enterprises Inc., Speymalt Ltd., First Bottle.

North America was the largest region in the alcohol e-commerce market in 2023. The regions covered in the alcohol e-commerce market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the alcohol e-commerce market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary alcohol types available in the market for alcohol e-commerce include wines and champagnes, spirits, beers, and various other alcohol variants. Spirits, characterized by the highest Alcohol by Volume (ABV) content, result from the yeast-based fermentation of a liquid brewed to contain fermentable sugars. In terms of pricing, alcohol products are typically categorized into economy, mid-range, and luxury segments. The distribution channels involved in alcohol e-commerce encompass online grocery platforms, online alcohol marketplaces, licensed specialty retailers, and direct-to-consumer wine online services. These channels offer consumers a range of options to purchase alcoholic beverages conveniently through digital platforms.

The alcohol e-commerce market research report is one of a series of new reports that provides alcohol e-commerce market statistics, including global market size, regional shares, competitors with a alcohol e-commerce market share, detailed alcohol e-commerce market segments, market trends and opportunities, and any further data you may need to thrive in the alcohol e-commerce industry. This alcohol e-commerce market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The alcohol e-commerce market consists of sales of alcohol e-commerce types that contain ethyl, denatured, isopropyl and rubbing. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.