Australia Alcoholic Drinks Market Size Worth USD 32.44 Billion By 2025

May 8, 2018

The Australia alcoholic drinks market to reach USD 32.44 billion by 2025, owing to the rise in the consumption of wine and the premiumisation trend in the country. The demand for alcoholic drinks such as beer, wine and other drinks is expected to grow significantly over the forecast period on account of the rise in drinking population and various marketing and promotion activities adopted by the famous brands to target the drinking population in Australia.

Beer is one of the most lucrative sector in the liquor manufacturing industry. It is being dominated by 2 foreign brands, Lion Nathan and Foster’s (SABMiller), which occupy around 90 per cent of the Australian alcoholic drinks market in beer sector. Coopers one of the Australian-owned beer, which accounts for just 3.6 per cent of the total sales of beer. Craft beer is one of the segments in the Australian beer market which is recording a constant growth, after the declining trends of beer consumption.

With the rise in the customer preferences and demand for high-quality and premium brands enriched with new and authentic flavors, premiumisation trend and innovation in the wine and beer market have been driving the growth for alcoholic drinks market in Australia. There are enormous number of brewers emerging in a highly competitive market in the country and consumers have a presence of large number of foreign and local brands to choose from which is driving the sales for craft beer over the forecast period.

The beer segment dominated the Australia alcoholic drinks market in 2016 and is expected to maintain its dominant position over the forecast period on account of the rise in the young drinking population who prefer crafted and premium beer brands.

The end-user awareness for health benefits of wine and shift in consumer preferences and drinking habits has led to consumers to switch to healthier options, such as low calories and low alcoholic drinks. Additionally, people are choosing to cut down their alcohol consumption and and in taking more and more wine, which is anticipated to propel the market for wine segment in the country over the forecast period.

The sales of alcoholic drinks through off-trade distribution channels such as supermarkets & hypermarkets is projected to perform certainly well over the forecast period on account of the rise in the number of brands and competitors in the market who are adopting various marketing strategies to sustain in the market and competing with foreign brands such as Fosters.

Off-trade distribution sectors such as supermarkets, hypermarkets, wine shops are the utmost widespread distribution channel for alcoholic drinks brands in Australia. The consumers are attracted towards these retail chains owing to the price discounts, advantages and "all under one roof" offers by these retailers. The very standard and common brands of alcoholic drinks are mainly sold through supermarkets and private brands present in the supermarkets.

There are numerous retail chains in the country such as Coles, ALDI Liquor, Dan Murphy (Woolworths), Woolworths Liquor and BWS which sell several brands of alcoholic drinks in the country attract consumers by providing discounts and offers owing to which the sales from off-trade distribution channels is expected to grow over the forecast period.

The Australia alcoholic drinks market is expanding owing to the rise in the living standards of the common public and the expansion of retail stores offering alcoholic drinks is expected to drive the growth of alcoholic drinks market in Australia significantly over the forecast period.

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Hexa Research has segmented the Australia alcoholic drinks market report based on type and distribution channel:

Segmentation by type, 2015 - 2025
    • Beer
    • Cider & flavored alcoholic beverage
    • Wine
    • Spirits

Segmentation by distribution channel, 2015 - 2025
    • Off-trade
    • On-trade

Key players analyzed:
    • LION
    • Australian Beer Company Pty Ltd.
    • Anheuser-Busch InBev
    • Accolade Wines
    • Vickery Wines

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