Canned Alcoholic Beverages Market Size, Share, Industry, Forecast and outlook (2024-2031)

Canned Alcoholic Beverages Market is Segmented By Product (Hard Seltzers, RTD Cocktails, Wine, Others), By Distribution Channel( Supermarkets and Hypermarkets, Specialty Stores, Convenience Stores, Online Sales, Others), By Region (North America, South America, Europe, Asia Pacific, Middle East & Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

canned alcoholic beverages market is estimated to reach at a high CAGR 13.4%  during the forecast period 2024-2031. Alcoholic beverages are made by fermenting some form of sugary brew into ethanol and CO2. Canned alcoholic beverages are gaining popularity among consumers since cans are more convenient, portable, and travel-friendly. Moreover, these metal cans are less expensive as compared to glass bottles and have a considerably higher recycling rate than glass. The growing demand for low-content alcohol-based flavored drinks due to rising health concerns is anticipated to drive the market for canned alcoholic beverages over the forecast period. These drinks are available in a variety of flavors, such as Ready to Drink (RTD) cocktails infused with ginger, rose, and lavender, which makes them the most preferred alcoholic beverage among consumers.

Market Dynamics:

Portable nature of cans makes them more user-friendly

The growing preference for containers that are more portable and less fragile than glass is boosting the growth of the market for canned alcoholic beverages. The market for canned alcoholic beverages is expected to see an upward trend due to the changing work lifestyles of consumers across the globe. Rising household income, consumer demand for better quality and safety, and increased awareness of maintaining a healthy diet across multiple formats that are easy to carry are the major factors that will lead to the growing demand for cans in the market. The demand for canned alcoholic beverages is substantial in developed regions such as North America. In addition to this, canning also helps in retaining the fiber content in drinks, further increasing the shelf-line without hampering the quality, which also makes it a go-to option for the beverage manufacturers who are producing drinks with soft-functional benefits. Moreover, increasing consumption of alcohol is expected to drive the market growth. For instance, at the global level, the total volume of alcohol consumed per year increased by as much as 70% between 1990 and 2017, from 20,999 million liters per year to 35,676 million liters per year.

Furthermore, the growing demand for convenience and rising health consciousness among consumers are the major factors driving the demand for canned alcoholic beverages. Nowadays, low-calorie drinks with natural ingredients appeal the most to consumers, thus, manufacturers are focusing on launching products with natural ingredients. Moreover, consumers have been showing a preference for beverages in convenient packaging formats, which is expected to promote the scope of canned alcoholic beverages over the next few years.

Market Segmentation:

Hand Seltzers segment is expected to dominate the global canned alcoholic beverages market

The hand seltzers segment dominated the market for canned alcoholic beverages and held the largest revenue share of 13.4% in 2020 and is expected to maintain dominance over the forecast period. Hard seltzers are carbonated water-based drinks, which are usually infused with fruits and spirits. These have become quite popular among millennials due to their low alcohol content. Compared to many other alcoholic drinks, it is low in calories (on average about 100 kcal per drink), lower in sugar (on average about 2 g carbohydrates per drink, and even less sugar) and also gluten-free. Low prices of hard seltzer, easy availability across supermarkets and convenience stores are factors anticipated to boost their sales in the upcoming years.

On the other hand, the wine segment is projected to register the fastest CAGR of XX% during the forecast period. The rising awareness among consumers for more eco-friendly alternatives to plastic bottles coupled with the growing taste for convenient products is propelling the demand for canned wine. Aluminum cans eliminate the efforts required for opening corks in wine bottles. Canned wine is gaining popularity among consumers across the globe owing to its portability as well as convenience to keep it cold on beaches, during overnight camping trips, and other outdoor recreational activities. Moreover, these metal cans are less expensive and have a considerably higher recycling rate than glass bottles. Key players are launching new products in this segment for customer retention as well as to attract new customers. For instance, in February 2020, Sula Vineyards, India’s renowned wine brand, announced the launch of its first-ever canned wine under the brand name ‘Dia Sparkler’. In April 2020, Molson Coors Beverage Company announced the launch of its new line of canned wine spritzers under the brand name ‘Movo’ in the U.S. market. The product is available in three flavors including Blood Orange Sangria, Raspberry Rosé, and Peach White Blend.

Geographical Penetration:

North America is expected to dominate the global canned alcoholic beverages market

The United States dominated the North America canned alcoholic beverages market in 2020. Growing per capita expenditure on alcohol, along with the rising availability of alcoholic beverages in attractive packaging styles, is expected to drive the market in United States for canned alcoholic beverages. The biggest gains in beverage alcohol consumption in the US last year were seen across the RTD category. RTDs grew +62.3% by volume in 2020, led by hard seltzers which grew +130%. Hard seltzers represent over 55% share of the total RTD category in the US, followed by flavored alcoholic beverages (FABs), and ready-to-drink cocktails/long drinks. Consumers with a greater spending capacity and a more sophisticated taste when it comes to beverage choices are driving the demand for premium-class canned alcoholic beverages.

Asia Pacific is expected to be the fastest growing region during the forecast period. The major factor driving the market in Asia Pacific is the presence of young consumers and rapidly growing economies. With growing structured market share and increasing spending capacity of consumers, the market is expected to grow at a prominent rate throughout the forecast period. Europe held significant market revenue share of XX% in the year 2020, owing to the large alcohol consumption among the European population. According to the data published by the Economic Cooperation and Development, in 2018, average alcohol consumption among the European adults reached 10 liters. In recent days, the consumer trends are shifting towards the idea of drinking less but better.

COVID-19 Impact: Pandemic has positively impacted the global canned alcoholic beverages market

The COVID-19 pandemic has had a positive impact on the regional markets in several key countries. According to a report published by the Wine Industry Network LLC, in August 2020, canned alcoholic drinks had gained tremendous traction during the lockdown period. Compared to 2019, the off-premises sales of canned beer/Flavored Malt Beverage (FMB)/cider increased by 25% in 2020. According to the data from Republic National Distributing Company (RNDC), canned cocktails were up 93% in March 2021, while canned wines rose by 95%. For spirits purchased on-premises via takeout orders, 37% of Americans indicate a preference for 200ml bottles, while 36% prefer ready-to-drink (RTD) cans of spirits. For wine, 27% of Americans consider the 375ml bottle to be their serving size of choice. Drizly, an alcohol E-commerce platform operating in over 100 markets across the United States and Canada, saw a 300% rise in sales.

Canned Alcoholic Beverages Market Scope

Competitive Landscape:

The global canned alcoholic beverages market is highly fragmented with many players such as Andre Champagne, Anheuser-Busch InBev, Bacardi Limited, Diageo plc, Asahi Group and Brown-Forman Corporation among others. The key players are adopting various key strategies such as product launches, collaborations, mergers & acquisitions which are contributing to the market globally. For instance, 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. Similarly, in January 2021, E. and J. Gallo Winery announced the launch of its first-ever TTB-approved “zero sugar” premium canned wine in the market.

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