Analyzing Alcohol Delivery Business Statistics and Trends in 2024

The Alcohol or Liquor delivery business are deemed as one of the most crisis-proof business categories even during the Covid-19 times.

But similar to all the other industries, the Alcohol beverage industry also witnessed the impact of the pandemic in 2021.

As the retailers and the consumers strived to adopt the new normal, stocking up on Alcoholic beverages and cocktail making at home became the common preference.

The general expectation hints at the adoption of e-commerce and on-demand delivery for the purchase of alcohol in 2022.

So, without any further delay, let us glance at the alcohol or liquor delivery business statistics & trends for 2024.

Overview of the Alcohol Delivery Industry

As liquor stores and bars witnessed a sales slump due to Covid-19 restrictions, the emergence of online alcohol sales began. 

There was also some momentum for online sales and delivery of alcohol before the pandemic by startups like Drizly. 

A significant blocker for the growth of e-commerce alcohol sales and delivery is the restriction variation within different cities and countries of the world. All the places have a different set of laws that dictate alcohol sales. 

Such regulations prevented the industry from growing as significantly as it could have in their absence. With time, the delivery of alcohol and alcohol e-commerce sphere will witness a positive change. 

Current Industry Statistics and Future Projections

Key Industry Metrics (2024)

Let us see some of the crucial statistics on online alcohol sales, famous brands, delivery of alcohol, demographics, and much more:

• The United States’ alcoholic beverage industry will stand at $146 billion in 2022. 
• Alcohol e-commerce is expected to grow over 66% over the time of 2020-25, with the expectation to reach $42 billion at the end of the said period. 
• The United States is expected to be the leader of significant growth in alcohol e-commerce, fuelled by numerous new consumer insights related to ordering alcohol online. 

Growth and Market Trends

Factors Driving Growth

Over the years, e-commerce has developed into a nuanced and sophisticated channel. Digital engagement has become an integral part of the customer journey.

With the ever-increasing strength of e-commerce and on-premise, there is a long-term structural change within the off-trade landscape.

Emerging Market Segments

• E-commerce is expected to take about a 6% share of off-trade alcohol sales. 
• As per the report, there are 16 main markets, namely Brazil, Australia, China, Canada, Colombia, France, Germany, Italy, Japan, Mexico, Netherlands, Nigeria, Spain, South Africa, the UK, and the US. 
• Over the main markets, alcohol e-commerce value went up by more than 12% in 2019 and then by more than 43% in 2020 during the peak of the pandemic. 
• The biggest forecast for e-commerce value growth is expected to come from the United States due to the average annual growth standing at more than 20%.

Below are some of the top industry trends that guide the alcohol and liquor delivery business in 2024.

Innovative Trends Shaping the Industry

1. The emergence of non-traditional luxury categories

While the international status spirits witnessed a decline in 2020 at a rate that surpassed the total global spirits market, IWSR hopes to see a rebound that is in line with prior growth levels seen from 2014-19. 

As per general expectations, future growth will see an increase in levels of wealth and new entrants in the market encompassing Asia and the US. 

Based on the IWSR consumer research, we can see that about 39% of the urban rich Chinese alcohol consumers told that they spent more than RMB 500 (approximately 79 USD) on one bottle of alcohol to consume at home in the first half of 2021. 

With the entry of new consumers to the market, a significant disrupter to the status quo of the international spirits landscape is the diversification of segment and the unfolding of niche status alcohol category. Such categories include agave-based spirits, Irish whiskey, Japanese whiskey, US whiskey, all of which witnessed growth in 2020. 

2. Blend vs Substitute Products

With time, low alcohol and no alcohol products are gaining traction amongst the consumers as the lifestyle is becoming increasingly acceptable of such products due to societal norms. 

Channels that are mainly oriented towards selling no-alcohol drinks for adults are seeing positive growth. The growth encompasses e-commerce sites, retailers, and liquor stores. 

Most of the no or low beverage alcohol is called “Substituters” in the key markets. These products primarily serve those who wish to use a milder version of alcoholic beverages for certain occasions. 

As per the IWSR consumer research, we can see that in the UK, 40% of no or low alcohol consumers are “Substituters.” These individuals usually belong to the Gen Z and millennial category. Both Gen Z and millennials (46% and 41% respectively) are more likely to opt for substitutes than Boomers, who comprise 36% of the lot. 

With the emergence of new technologies, we can see some tapping into the no-alcohol occasions with products that are liquor-free but offer mood-enhancing or functional benefits. 

Most of these products use ingredients like CBD, nootropics, and adaptogens. The idea behind these products is to enhance the way a consumer “feels” while being health conscious. 

3. E-Commerce Evolution

The e-commerce landscape has become more nuanced while the value of e-commerce shot up by almost +43% in 2020 over 16 main markets. 

With the development in alcohol sales, the number of retailers is going up. Additionally, the range of the business model they follow is more diverse. 

The very difference between different e-commerce channels or offline and online alcohol shopping modes is becoming irrelevant to the consumers. 

The direct result of this is the diminishing of lines between different online alcohol sales channels. One example is omnichannel retailers establishing logistics partnerships with on-demand services. This has the potential to offer faster delivery.

4. Home-premise and on-premise dynamics

In the current times, people are spending more time in their homes and in local on-premise venues than outside. The IWSR findings hint that premium consumption can likely shift from on-trade to the home-premise.

With the return of consumers to the on-trade, the typical experiences will be transformed by the two years spent at home. Some premium at-home experiences include at-home cocktail-making and subscription services.

Hence, the consumers will be more mindful of the higher prices and more easily put off by the bad quality of products in bars, pubs, and restaurants. 

5. RTD category premiumization

With the new RTD launches, we can see a greater representation of premium and above products than volumes consumers in 2020. This suggests a hinge towards premiumization. 

Additionally, there is an apparent diversion from RTD innovation thus far as the majority of international RTD categories currently sit at the standard and below price brands. 

The shift to premiumization is bound to appeal to spirits and wine brand owners. Even though the flavor is the key purchase drive for RTD selection by consumers in significant markets, liquor bases are also amongst important motivation factors. 

6. Category  diversification

Individuals are shifting increasingly between beverage options or opting for entirely new beverages. As per IWSR research, there is a wide repertoire of product trials in which individuals show great interest in craft beer, wine, Japanese whiskey, and hand seltzers. 

Major drink companies are exploring the previously untapped categories of drinks in an attempt to diversify the portfolio. Diversification is with response to addressing transforming consumer preferences and tastes. Additionally, the lines between traditional soft drinks and alcohol have blurred. 

7. Sustainable practices and commitments

Most corporate and social responsibility agendas consider sustainable packaging solutions as a priority in the drinks industry. 

There have been certain concerns related to climate change after the events like COP26. Consumers and influential individuals in the industry are looking for drinks companies to exhibit a commitment to sustainable practices. 

Another crucial trend during a pandemic is solidarity between the local brands and businesses. It is also quite closely linked with the sustainable mindset of the consumer. For instance, as per research conducted by IWSR, about 48% of US liquor consumers make purchase decisions influenced by a company’s sustainability and environmental initiatives. 

8. External challenges and pressures

It is not just the consumer demand that impacts the production and route-to-market for the global beverage industry, and there are other additional factors included. These are increasing packaging costs, the capacity of containers, and other issues related to the supply chain, inflationary pressures, and environmental changes. 

Certain companies might need to be more tactical and adjust some of the near-term market and brand strategies to merge with the operating and economic landscape. 

The brand owners also need to be conscious of the false positives seen through 2020 and 2021 that will reflect previous industry trends. The purchasing increase witnessed in the domestic markets in 2020 and 2021 will see a downwards correction moving forward.

Challenges and Opportunities in Alcohol Delivery Business

Regulatory and Legal Considerations

• Alcohol delivery has to be compliant with specific location-based regulations to prevent the delivery of alcohol in places like educational institutions, hostels, and offices. 
• These regulations can sometimes be ever-changing and difficult to comply with, making it hard to stay updated on them.
• In the absence of such regulations, the alcohol e-commerce market delivery business will become an object of much scrutiny leading to a decline in the future. 
• With the easy availability of liquor via the delivery business, there is a significant risk of misuse. This can lead to an alcohol epidemic. 
• Since the delivery services are anticipated to spend in every location, it can act as a trigger to fuelling alcoholism on a large scale. 
• Such a trend is especially detrimental for those who are recovering alcoholics as the notion of self-control will take a setback when liquor is readily available. 

Solution:

Ensure learning the regulations and laws specific to your area. This way, you can be well aware of the permits and licenses that you must acquire and the federal and state laws you must follow. 

Ideally, every state restricts alcohol consumption by minors, i.e., those below 18 years of age. So, your drivers must be instructed to check your recipient’s ID before making the delivery. 

You can also consult a legal expert or attorney to stay assured that every aspect of your business complies with legal regulations and prevents issues.

Technological and Operational Challenges

1. A problem with delivering alcohol is verifying the recipient’s age. As online stores have increased recently, online alcohol sales have made it hard to verify buyers’ ager. This can land you in legal trouble, which can ruin your brand image and hamper your revenue.
2. As alcohol is often delivered in glass bottles, they are prone to breakage in transit. Moreover, some types of alcoholic beverages like sparkling wine require you to make special arrangements to preserve quality during transportation or delivery.
3. Packaging materials used for alcohol bottles may contain lead and cadmium, which may pollute the alcoholic beverage. Moreover, flexitanks and plastic containers can also release food contact material residues into the alcohol if you fail to maintain the optimal temperature and avoid spillages. 

Technological Innovations for Efficiency

• Implement reliable online age-checking methodologies and coordinate with logistics agencies to ensure compliance with alcohol delivery regulations. 
• Use high-quality packaging materials and secure your handling practices to avoid breakage or damage during transit. You can also consider partnering with logistics companies that specialize in alcohol delivery. 
• Consider using insulated packaging and thermal blankets to maintain the optimal temperature, humidity, and gas levels.

Advantages and Strategic Benefits of Alcohol Delivery

Some key advantages associated with the delivery of alcohol business include:

1. Improving customer experience: 

Placing an online order prevents you from going out. This saves your customers time and money commuting to buy alcohol. As Covid-19 forced people to maintain hygiene and social distancing, contactless delivery of alcohol can help curb infection spread. All these factors cumulatively help enhance customer experience.

2. Expansion opportunities:

Products can be provided globally – There is no need for local concentrations of alcoholic products. With e-commerce at its disposal, online alcohol delivery sales can happen across the world.

Based on these advantages, we can safely say that the alcohol delivery business is a promising pursuit for you to explore.

See Your Alcohol Delivery Business Soar With Upper Route Planner!

So these were the Alcohol or Liquor Delivery Business Statistics & Trends 2022. 

With changing times, the alcohol consumption dynamics are changing drastically. With the help of Upper Route Planner, you can get efficient route planning for alcohol delivery.

So, what are you waiting for? Get a free 7 days trial today to see your Alcohol delivery business take flight. 

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