USA may become the leader in online alcohol sales

According to the latest forecasts by IWSR Drinks Market Analysis, the value of alcohol e-commerce in 10 major markets will reach USD 24 billion this year, up 42% over the previous year. By the end of 2021, the United States is projected to overtake China to become the largest online alcohol market in the world.

The IWSR study looked at 10 core markets that represent 98% of total alcohol e-commerce value: Australia, Brazil, China, France, Germany, Italy, Japan, Spain, UK and the United States. The report also examined 10 emerging e-commerce alcohol markets: Mexico, Colombia, Argentina, the Netherlands, Israel, Nigeria, Kenya, South Africa, Singapore and the Philippines.

In 2019, the total value of e-commerce of spirits in these 10 markets increased by 11%. It turned out that the global pandemic has significantly accelerated growth in this segment, and the IWSR expects the total value of e-commerce alcohol to exceed $ 40 billion by 2024.

Guy Wolfe, strategic insights manager at IWSR Drinks Market Analysis, said: ‘Consumers’ increasing proclivity for online purchasing has been driven by necessity in recent months, but these purchasing behaviours are here to stay. As brand owners increasingly invest in the channel, markets must be assessed on their own merits with a bespoke strategy developed. This is especially important as government regulations for alcohol e-commerce may evolve as the channel continues to grow. The forecast size and growth of e-commerce means it can no longer be viewed as merely an interesting niche. Online is now a market in its own right, and one that the IWSR forecasts to equal the Indian beverage alcohol market in value by 2024.’

Alcohol e-commerce has boomed in nearly all markets this year, but some have experienced faster growth than others. China is currently the largest online alcohol market in the world, but its growth rate has been much slower compared to markets such as the UK, US, Australia and Brazil.

China's e-commerce alcohol market is expected to grow 23% this year. According to IWSR experts, the slower growth in this market is due to the fact that the Chinese e-commerce channel is already relatively well developed. It is estimated that as many as 46% of Chinese consumers who buy alcohol online have been doing so for several years.

The United States is predicted to overtake China by the end of next year to become the largest online alcohol market in the world. Due to the constraints associated with the pandemic, the growth rate of this channel in the US accelerated by several years. According to IWSR forecasts, the total value of alcohol e-commerce in the US will increase sixfold between 2019 and 2024.

There has been a huge increase in awareness of alcohol e-commerce among US consumers this year as some states relaxed regulations to facilitate online sales and home delivery. IWSR consumer research shows that in the United States, 44% of e-shoppers of alcohol did not start buying alcohol online until 2020, compared to 19% in 2019.

Source: www.thespiritsbusiness.com