The International Wine and Spirits Record, an industry research firm, reports that in the U.S., 44% of consumers only started buying alcohol online in 2020, compared to 19% in 2019. There is still a lot of opportunity, as the organisation predicts that the alcohol e-commerce market will still increase by 42% this year to reach $24 billion.
The 10 core markets included in IWSR’s new comprehensive Global E-commerce Strategic Study (Australia, Brazil, China, France, Germany, Italy, Japan, Spain, UK, and the US) collectively represent over 90% of total alcohol e-commerce value. The report also examined an additional 10 “markets to watch” (Mexico, Colombia, Argentina, Netherlands, Israel, Nigeria, Kenya, South Africa, Singapore, and the Philippines.) Across all of those 20 markets, IWSR expects the total value of alcohol e-commerce to exceed US$40 billion by 2024.
“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,” says Guy Wolfe, Strategic Insights Manager at IWSR Drinks Market Analysis.
Wolfe adds, “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. The channel should therefore be given an equivalent level of focus and be fully integrated into route-to-market strategies.”
This story is from the May 2021 edition of Ambrosia.
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This story is from the May 2021 edition of Ambrosia.
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