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 2022.
Table of Content
- Industry Stats and Growth Projection
- Top Trends
- The emergence of non-traditional luxury categories
- Substitutes vs. Blenders
- Change in the e-commerce landscape
- Sophisticated home-premise impacts the return of the on-premise
- Early signs of premiumization in the RTD category
- Diversification as the category lines blur
- Clear commitments to sustainable practices
- External pressures
- Challenges Associated With Alcohol Delivery Business
- Advantages of Alcohol Delivery Business
- See Your Alcohol Delivery Business Soar With Upper Route Planner!
Industry Stats and Growth Projection
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.
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.
- 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%.
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.
Below are some of the top industry trends that guide the alcohol and liquor delivery business in 2022.
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. Substitutes vs. Blenders
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. Change in the e-commerce landscape
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. Sophisticated home-premise impacts the return of the on-premise
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. Early signs of premiumization in the RTD category
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. Diversification as the category lines blur
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. Clear commitments to sustainable practices
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 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.
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Challenges Associated With Alcohol Delivery Business
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 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.
Additionally, there should be a specific location-based regulation to prevent the delivery of alcohol in places like educational institutions, hostels, and offices.
The restriction should also be based on the age filter and ID to prevent liquor consumption by minors.
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.
Advantages of Alcohol Delivery Business
Some key advantages associated with the delivery of alcohol business includes
- Contactless delivery of alcohol – As Covid-19 forced people to maintain hygiene and social distance, contactless delivery of alcohol can help curb infection spread.
- 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.
- Saves time for consumers – Placing an online order prevents you from going out. This saves your time and money commuting to buy alcohol.
Based on these advantages, we can safely say that the alcohol delivery business is a promising pursuit for you to explore.
These days, social media is the quickest method to get the word out, especially if you know many of your followers already. Keep your Instagram stories up to date with consistent modifications, and publish a message to your feed informing customers of your new procedure.
Some of the top alcohol delivery apps are:
Yes, in most countries alcohol home delivery is legal when the order is placed via specific apps or websites.
With alcohol e-commerce taking flight, we can witness an increase in the job opportunities with the highest demand for delivery executives.
Yes, with the growth in on-demand delivery, consumers are more likely to continue buying alcohol online.
See Your Alcohol Delivery Business Soar With Upper Route Planner!
So these were the Alcohol or Liquor Delivery Business Statistics & Trends for 2022.
With changing times, the alcohol consumption dynamics are changing drastically. With the help of Upper Route Planner, you can have fast delivery of alcohol for your retail delivery business.
So, what are you waiting for? Get a free 7-day trial today to see your Alcohol delivery business take flight.
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