Canned Alcoholic Beverages Market

The global Canned Alcoholic Beverages Market is valued at USD 14.5 Billion in 2022 and is projected to reach a value of USD 56.1 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 21.3% between 2023 and 2030.

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According to OECD 2022 report, alcoholic beverages sales increased by 3% to 5% in the UK, Germany, and the U.S. in 2020 compared to 2019. Sales of alcohol in restaurants, and bars plummeted, while online sales, grew significantly. For instance, online sales of alcohol increased by 262% compared to 2019 sales in the U.S. during the pandemic, as per the National Institutes of Health (NIH) 2020 report. This increased demand also increases the demand for Canned Alcoholic Beverages market in recent years. In addition, as per the Bureau of Labor Statistics Consumer Expenditure Survey 2019 data, the average consumer in the U.S. spends USD 579 on alcohol annually.

Furthermore, an increase in binge drinking and heavy alcohol consumption among people aged 18 and above is expected to drive the market growth. According to the National Institutes of Health (NIH), 25.8 percent of people aged 18 and older were engaged in binge drinking in 2019. Similarly, according to a U.S. report, the U.S. ready-to-drink alcohol sector grew by 1.3 percent in 2022 reaching a value of 4.8 billion U.S. dollars. Much of this growth was attributable to spirits-based beverages. Spirits, in general, have been seeing a rise in market share while both beer and wine have waned in recent years. Also, the EU food and drink industry employs 4.6 million people, generating a turnover of €1.1 trillion and €230 billion in value-added, making it one of the largest manufacturing industries in the EU. This surge in demand for Ready-to-Drink (RTD) Beverages and increased investment in alcoholic beverages are propelling the market growth in recent years.

Nowadays, consumers are increasingly looking for hassle-free options that do not require any preparation or mixing. Canned alcoholic beverages fulfill these requirements by offering convenient, pre-mixed, and pre-packaged drinks. For instance, Shima Drinks, a Japanese startup, launched an RTD cocktail, canned ake, in the hard seltzer category in the U.K. industry. Similarly, Coca-Cola Australia introduced a new RTD beverage, Topo Chico, in the hard seltzer category. The new beverage is a blend of sparkling water with alcohol and is available in three flavors - Pineapple Twist, Tangy Lemon Lime, and Strawberry Guava.

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Furthermore, around 63% of men drank alcoholic beverages compared to 57% of women, 70% of those aged 35 to 54 years consumed alcohol compared to both younger (60%) and older consumers (52%). According to Numerator, 90% of Millennials purchased alcohol during the 52-week period ending in May 2021, compared to 84% of 21 and older Gen Z shoppers. Thus, a growing preference for premium and craft alcoholic beverages drives the market. Consumers are willing to pay a premium price for unique and high-quality beverages. Canned alcoholic beverages have capitalized on this trend by offering a wide range of premium and craft options that are convenient and accessible.

Key Highlights

• North America created more than 48.50% of revenue share in 2022.
• Asia Pacific is expected to dominate the market during the forecast period.
• On the basis of Product, Hard Seltzers segment accounted for the largest market growth and contributed more than 41.2% of the total revenue share in 2022.
• Based on Distribution Channel, the Liquor Stores segment revealed the most significant market growth and contributed more than 42.6% of the total revenue share in 2022.
• Based on Alcoholic Content, the Low (ABV less than 5%) segment accounted for the potential market growth with more than 39.4% of the total revenue share in 2022 whereas the Flavoured alcoholic beverages segment is expected to lead the market in the projected zone.

Economic Insights

The growth potential of the Canned Alcoholic Beverages market has attracted investments from various sources. Companies have invested in production facilities, research and development, marketing campaigns, and distribution networks to capitalize on the market's potential. These investments stimulate economic activity and contribute to economic growth. Governments collect taxes on alcoholic beverages, including Canned Alcoholic Beverages. As the market expands, the tax revenue generated from the sales of these products also increases. This revenue can be utilized for public services, infrastructure development, and other government initiatives. The Canned Alcoholic Beverages market is not limited to domestic consumption but also involves international trade. Manufacturers may export their products to foreign markets, leading to foreign exchange earnings and trade balance impacts. Similarly, imports of Canned Alcoholic Beverages can affect domestic market dynamics.

Top Market Trends

1. Changing Consumer Preferences: Consumer preferences were shifting towards ready-to-drink (RTD) beverages that require minimal preparation. Canned alcoholic beverages cater to this demand, providing consumers with a quick and hassle-free way to enjoy their favorite alcoholic drinks. According to Wine Industry Network, canned alcoholic drinks have gained tremendous traction among consumers in August 2020. Compared to 2019, the off-premises sales of canned beer/flavored malt beverage (FMB)/cider increased by 25% in 2020. Additionally, the rise in health-conscious consumers seeking lower-calorie or lower-alcohol options contributed to the growth of Canned Alcoholic Beverages with varying alcohol content and flavors. For instance, Pernod Ricard launched an RTD cocktail, ginger & lime canned premix under its brand Jameson brand in the U.S. The RTD cocktail is a blend of Jameson Irish whiskey and natural lime & ginger flavors.
2. Brand Innovation and Marketing: Companies in the canned alcoholic beverage industry were investing heavily in product innovation and marketing to attract consumers. The new flavor, unique formulations, and creative packaging designs helped differentiate brands and attract a wider audience. For instance, Molson Coors launched new hard seltzer, Vizzy, and in four different flavors-Strawberry Kiwi, Black Cheery Lime, Pineapple Mango, and Blueberry Pomegranate in the U.S. Each 12-ounce serving contains 5% alcohol by volume. Effective marketing campaigns, including social media and influencer collaborations, also played a crucial role in boosting sales.

Market Segmentation

The global Canned Alcoholic Beverages market can be categorized based on the following factors: Product, Distribution Channel, Alcohol Content, and Region. Based on Product, the market can be segmented into Beer, Hard Seltzers, Wine, and RTD Cocktails. The Distribution Channel segment includes On-Trade, Liquor Stores, Online, and Others. Similarly, based on Alcoholic Content, the market is categorized into Low (ABV less than 5%), High (ABV greater than 5%), and Flavoured Alcoholic Beverages. In terms of Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Based on Product

Hard Seltzers Dominate the Market Because of their Lighter, Refreshing, and Low-calorie Drink Options

The hard seltzer segment has experienced remarkable growth within the Canned Alcoholic Beverages market in 2022. Hard seltzers are alcoholic beverages typically made with carbonated water, alcohol, and fruit flavors. They have gained popularity among consumers seeking lighter, refreshing, and low-calorie drink options. Like other Canned Alcoholic Beverages, hard seltzers offer convenience and portability. Cans are easy to transport, open, and consume, making them ideal for outdoor activities, picnics, and social gatherings. The ready-to-drink nature of hard seltzers eliminates the need for mixing ingredients, further enhancing their convenience.

Based on Distribution Channel

Liquor Stores to Witness Significant Growth Owing to its Increased Variety and Availability

The Liquor Stores segment is anticipated to have substantial growth in the market in 2022. Liquor stores have responded to changing consumer demands by expanding their product offerings, including a wider selection of Canned Alcoholic Beverages. The increased availability of canned options, such as beer, hard seltzers, ready-to-drink cocktails, and wine spritzers, has contributed to the growth of the liquor stores segment. This variety allows consumers to find their preferred Canned Alcoholic Beverages conveniently.

Based on Alcoholic Content

Flavored Alcoholic Beverages to Dominate the Market Growth Owing to the Marketing Efforts and Product Innovations by Manufacturers

The Flavored Alcoholic Beverages segment is anticipated to lead the market growth during the forecast period. The marketing efforts and product innovations by manufacturers have contributed significantly to the growth. Many beverage companies have introduced new flavors and unique combinations to entice consumers and differentiate themselves from competitors. They have also focused on branding and packaging strategies tailored toward the target audience, such as using bright colors, catchy names, and appealing graphics on the cans.

Based on Region

North America Holds a Prominent Market Share Due to the Changing Preference for Ready-to-Drink (RTD) Beverages

In 2022, North America held a significant market share in the global Canned Alcoholic Beverages market. Millennials and younger generations have shown a preference for ready-to-drink (RTD) beverages that are convenient and easy to consume. Canned alcoholic beverages fit this preference as they offer a portable and single-serving option that can be enjoyed on the go or at social gatherings. In addition, innovation in packaging and flavors has also played a crucial role in the growth of this market. Manufacturers have introduced various packaging solutions, such as slim cans, resealable cans, and sleek designs, to appeal to consumers. These packaging innovations not only enhance the product's visual appeal but also improve convenience and portability.

Competitive Landscape

The global Canned Alcoholic Beverages market is highly competitive, with numerous international and regional players vying for market share. Key market players engage in strategies such as mergers and acquisitions, product innovation, and brand collaborations to gain a competitive advantage. In recent market developments, companies have introduced new flavors and variants to cater to evolving consumer preferences. For example, in August 2022, Anheuser-Busch InBev introduced a new line of canned cocktails, expanding its portfolio of Canned Alcoholic Beverages.

The key players in the global Canned Alcoholic Beverages market include – Bacardi Limited (U.S.), Diageo (UK), Brown-Forman Corporation (U.S.), Anheuser-Busch InBev (Belgium), Treasury Wine Estates (Australia), Union Wine Company (U.S.), E. & J. Gallo Winery (U.S.), Asahi Group Holdings Ltd. (Japan), Pernod Ricard (France), Integrated Beverage Group LLC (U.S.), Sula Vineyards (India), Kona Brewing Co. (U.S.), Suntory Holdings Ltd. (Japan), Barefoot Cellars (U.S.), Constellation Brands (U.S.) among others.

Recent Market Developments

• February 2023: Vita Coco launched the RTD alcohol drink Vita Coco Spiked with Captain Morgan. The new product offers three rum-based cocktails, pina colada, strawberry, and lime mojito. The newly launched 'Vita Coco Spiked with Captain Morgan is commercially available across the United States.
• February 2023: Bira 91 announced its entry into the hard seltzers category by launching the 'Grizly' hard seltzers ale. The Grizly by Bira 91 brings cocktails, wine, and beer in one can. The canned alcoholic beverage by Bira 91 contains all-natural ingredients with low-sugar content.
• January 2023: Chicago-based Molson Coors Beverage Company launched 'Roxie', a zero-proof canned cocktail. Roxie comes in three flavors in canned packaging, Ripe with Passionfruit, Lost in Mango, and Forbidden Pineapple. The company has made canned alcohol available in its online store.
• August 2022: Tito's announced the launch of its new ready-to-drink vodka in canned packaging. The 16-oz and double insulated can offer high-quality, smooth vodka cocktails at a reasonable price.

Segmentation of the Global Canned Alcoholic Beverages Market