CANNED ALCOHOLIC BEVERAGES MARKET ANALYSIS

The global canned alcoholic beverages market size is estimated to be valued at US$ 6.11 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 13.8% from 2023 to 2030. The global canned alcoholic beverages market is projected to witness strong growth in the near future due to growing preference for convenient travel-friendly canned drinks. Moreover, manufacturers are focusing on creating new attractive flavors in RTD canned alcoholic beverages which is further expected to augment the market growth.

Global Canned Alcoholic Beverages Market: Regional Insights

Based on geography, the global canned alcoholic beverages market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Regionally, North America is expected to dominate the global canned alcoholic beverages market over the forecast period owing to the rise in expenditure on alcohol and the availability of canned drinks with attractive packaging styles. The market in the region is further fueled by the increased demand for RTDs such as hard seltzers, ready-to-drink cocktails, and long drinks.

On the other hand, the Asia Pacific canned alcoholic beverages market is expanding at a fast pace owing to the growing population of millennials, improving living standards, and the emergence of several emerging economies. Furthermore, increased awareness about health and fitness among consumers, growing popularity of flavored alcohols and a surge in tourism in the region are further contributing to the growth of this market.

Figure 1. Global Canned Alcoholic Beverages Market, By Region, 2023

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Global Canned Alcoholic Beverages Market Drivers:

Growing demand for ready-to-drink products to foster market growth

The growing consumer preference for RTD alcoholic beverages, which offer convenience and a variety of flavors is driving growth of the market. Additionally, these drinks are convenient to store and carry around, making them suitable for busy lifestyles. Moreover, they are available at affordable prices, which make them accessible to a wider range of consumers. Furthermore, the growing number of bartenders who specialize in preparing a variety of cocktails with RTD alcoholic beverages is further propelling market growth.

Premiumization is another major driver factor

Premiumization of the beverages with improved taste, flavors, and creative packaging is expected to create demand for RTD cocktails, thereby fostering market growth. The key players are emphasizing aggressive advertisement and product launches to capture a high market share. For instance, in August 2020, The Coca-Cola Company announced the launch of a hard seltzer in sleek aluminum cans in Mexico and Brazil under the brand Topo Chico. The product is slated to be launched in the U.S. market sometime in 2021.

Global xxxx Market Opportunities:

Growing focus of key manufacturers to introduce alcoholic beverages in different flavors is expected to provide significant market growth opportunities over the forecast period. For instance, in May 2021, Bacardi expanded its range of canned cocktails, in different flavors BACARDÍ Sunset Punch BACARDÍ Bahama Mama, and BACARDÍ Mojito. This gluten-free are produced with real ingredients, natural flavors, and no artificial sweeteners.

Growing popularity of canned beverages due to advantages of convenience and affordability is expected to present lucrative market opportunities. The beverage cans are gaining popularity on the account of increasing demand for packaged drinks, especially among millennials. The popularity of canned drinks is also attributable to the fact that they are light-weight, unbreakable, stackable, and durable. Additionally, metal cans protect the beverage from light and excess oxygen and are easier to transport than glass bottles.

Global Canned Alcoholic Beverages Market Trends:

Gluten-free alcoholic beverages is a recent trend

Gluten-free alcoholic beverages are gaining popularity due to growing number of health conscious and celiac population worldwide. In April 2019, Molson Coors Beverage Company launched a sparkling cocktail called Cape Line Sparkling Cocktails. This new drink is free from gluten and made with natural flavors with an ABV of 4.5%. The 355ml cans are available in four flavors: Margarita, Hard Strawberry Lemonade, White Peach Sangria, and Blackberry Mojito.

Growing number of merger and acquisition

Key manufacturers are adopting various market strategies to cater to the growing demand for RTD cocktails among consumers. For instance, in September 2020, Beam Suntory, Inc., a subsidiary of Suntory Holdings Limited, acquired On The Rocks, a leading RTD cocktail brand. With this acquisition, the company aims to expand its RTD cocktail products across the U.K. These market trends are projected to augment the demand for canned RTD cocktails over the forecast period.

Global Canned Alcoholic Beverages Market Restraints:

Increasing demand for non-alcoholic RTD beverages to hamper market growth

The consumption of non-alcoholic RTD beverages is growing among consumers owing to the growing prevalence of obesity and other lifestyle-related diseases. Consumers are reduce their alcohol consumption and shifting toward healthier drinks which is expected to restrict the growth of alcoholic beverages, thereby negatively impact the canned alcoholic beverages market growth.

Increasing tariffs on alcoholic beverage to hinder market growth 

Growing tariffs on the import of alcoholic beverages by governments of various countries is leading to rise in product prices. These high tax and tariff rates, in turn, pose various challenges to the canned alcoholic beverages market. For instance, in October 2019, the U.S. imposed a 25% tariff on beverages like Scotch whisky and wine (not over 14% ABV) made in Germany, France, Spain, and the U.K. In June 2020, the U.S. government introduced another tariff review on imported goods, including beer, vodka, and gin, made in Germany, France, the U.K., and Spain, as part of its trade dispute with the European Union (EU).                              

Figure 2. Global Canned Alcoholic Beverages Market, By Product, 2023

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Global Canned Alcoholic Beverages Market Segmentation:

The global canned alcoholic beverages market report is segmented into product, distribution channel, and region

Based on product, the market is segmented into Wine, RTD Cocktails, and Hard Seltzers. Out of which, RTD Cocktails is expected to dominate the global market over the forecast period. The canned RTD cocktails segment was valued at US$ 754.5 Billion in 2020 and is expected to reach US$ 2,022.8 Billion by 2028, expanding at a CAGR of 13.1% from 2021 to 2028. Key players are introducing RTD cocktails produced by using real fruit juices with no artificial sweeteners. This factor is driving segment growth.

Wine segment is also expected to witness significant growth in the near future. The growing awareness among consumers regarding the more eco-friendly alternatives to plastic bottles. Moreover, aluminum cans eliminate the struggle required to open the corks in wine bottles. The canned wine segment was valued at US$ 282.6 Billion in 2020 and is expected to reach US$ 787.9 Billion by 2028, expanding at a CAGR of 13.7% from 2021 to 2028.

Based on distribution channel, the market is segmented into on-trade, liquor stores, online, and others. Out of which, Liquor Stores is expected to dominate the global market over the forecast period and this is attributed to the fact that these stores have widespread and well-established distribution channel for canned alcoholic beverages. The sale of canned alcoholic beverages through liquor stores was valued at US$ 2,691.6 Billion in 2020 and is projected to register a CAGR of 13.2% over the forecast period to reach US$ 7,259.3 Billion by 2028.

Online segment is also expected to witness significant growth in the near future and this is owing to the hassle-free and shopping experience offered by online platform.  The sale of canned alcoholic beverages through online channels was valued at US$ 814.5 Billion in 2020 and is projected to register a CAGR of 13.6% over the forecast period to reach US$ 2,265.2 Billion by 2028.

Global Canned Alcoholic Beverages Market: Key Developments

• In April 2020, TWE entered into a multi-year partnership deal with the rap artist Snoop Dogg through its wine brand 19 Crimes. The partnership includes a new line of 19 Crimes wine called Snoop Cali Red.
• In April 2020, TWE successfully registered the trademark BEN FU. The completion of registration comes against the backdrop of 10 years of litigation for claim of the BEN FU trademark ownership.
• In March 2020, Treasury Wine Estates (TWE) announced the launch of fizzy gin in RTD cans under the brand name ‘Blossom Hill Gin Fizz’.
• In August 2019, Constellation Brands announced that it has acquired a minority stake in Durham Distillery, a craft gin, liqueur, and RTD canned cocktail producer.
• In January 2021, E. & J. Gallo Winery announced the launch of its first-ever TTB-approved ‘zero sugar’ premium canned wine.
• In May 2020, E. & J. Gallo Winery announced the launch of a new French rosé, Maison No. 9, created and developed by Post Malone, a Grammy-nominated record artist, in partnership with Global Brand Equities and Dre London. E. & J. Gallo Company has exclusive distribution & sales support for the brand.
• In March 2021, Koninklijke Grolsch, a Dutch brewery and a subsidiary of Asahi Group launched hard seltzer in cans and bottles under the brand name ‘Viper’. This is the first hard seltzer in the Netherlands that is available in cans as well as bottles.
• In February 2021, Asahi Breweries announced the launch of a new range of canned low alcoholic carbonated drinks in March 2021 (Tokyo & several other prefectures) and June 2021 (all over Japan), under the brand name ‘Beery’. The product has 0.5% ABV.
• In September 2020, Beam Suntory, Inc., a subsidiary of Suntory Holdings Limited, acquired On The Rocks Premium Cocktails, a leading RTD cocktail brand. With this acquisition, the company expanded its RTD cocktail product offering across the region.
• In March 2021, Bacardi Limited announced the launch of a new variant ‘Watermelon Mint’ in its alcoholic fruit-flavored drink ‘Bacardi Breezer’. The drink is available in three flavors- Lime & Soda, Limon & Lemonade, and Rum Punch.
• In August 2020, Bacardi Limited announced the redesigning and rebranding of its RTD rum cocktail range in the U.K. market. Old labeled cocktail cans were replaced by new ones, but the liquids as well as flavors remained the same.
• In August 2020, Bacardi Limited announced the acquisition of bottled cocktail maker Tails. Bacardi had first acquired a minority stake in Tails in 2018.
• In July 2020, Pernod Ricard-owned Kahlúa launched Nitro Cold Brew, a canned cocktail made with rum, coffee liqueur, and 100% Arabica cold brew coffee.
• In May 2020, Pernod Ricard-owned Absolut introduced a new range of canned products, including vodka sodas and cocktails made with original Absolut Vodka and natural flavors.
• In July 2018, Pernod Ricard announced the launch of Australia’s first-ever canned wine under the brand name Jacob’s Creek Moscato.
• In January 2021, Brown-Forman Corporation announced changes in the distribution of its brands in the U.K. The company is taking over the distribution from current premium brand distributor Mangrove in the U.K. Currently, Mangrove distributes The GlenDronach, The BenRiach, and Glenglassaugh scotch whisky brands; Herradura and el Jimador tequila brands; and Old Forester Kentucky bourbon whiskey brand on behalf of Brown-Forman in the country.
• In December 2020, Brown-Forman Corporation, one of the largest American-owned spirit and wine companies, announced an exclusive long-term partnership with Pabst Brewing Company, one of America’s largest independent brewers, for the sales, supply, and distribution of Jack Daniel’s Country Cocktails brand within the U.S. and in domestic military markets.
• In March 2021, the North American division of Diageo plc. announced a US$ 80 Billion investment to ramp up the production of its RTD products, including Smirnoff seltzers and canned cocktail brands Crown Royal and Ketel One Botanicals.
• In March 2021, Diageo plc completed the acquisition of the U.K.-based Chase Distillery.

Global Canned Alcoholic Beverages Market: Key Companies Insights

The global canned alcoholic beverages market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global canned alcoholic beverages market 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.

*Definition: Canned alcoholic beverages are used in a variety of settings, including bars, restaurants, hotels, and supermarkets, as well as at social outings and parties. They can be sipped and enjoyed anywhere, even in hot temperatures. Canned drinks are also popular at beaches, beside the pool, while camping, and during sports activities.