Building digital relationships with alcohol consumers
USA | What did Americans learn in 2020? Among other things, that you can legally order alcohol online and have it delivered to your doorstep. In a poll 44 percent of respondents said that 2020 was the first year they bought alcohol over the internet.
In a recent webinar for the Brewers Association, IWSR analyst Brandy Rand said that, in 2020, the US caught up with China in terms of e-commerce alcohol sales. Per its forecast, in 2021, the US could overtake China to become the largest e-commerce alcohol market worldwide. Per the IWSR, spirits are forecast to capture a share of 39 percent of US e-commerce alcohol sales by 2024, taking share away from wine (down from 54 percent in 2019 to 44 percent in 2024). Beer is to represent 12 percent and the ready-to-drink sector 5 percent by 2024.
Online alcohol ordering and delivery become “new normal”
In the ten markets covered by IWSR’s e-commerce research, turnover climbed to USD 24 billion in 2020. It is expected to grow to USD 42 billion by 2024. The ten countries included are Australia, Brazil, China, France, Germany, Italy, Japan, Spain, the UK and the US. Collectively, they represent over 90 percent of total alcohol e-commerce value. “The forecast size and growth of e-commerce means it can no longer be viewed as merely an interesting niche,” the IWRS commented.
As we enter into a period of post-covid recovery, e-commerce will be the only channel expected to show growth in all of the 19 major markets surveyed by the IWSR. These countries represent 75 percent of total beverage alcohol.
While off-premise sales in most of these countries will continue to rise, the on-premise will consequently see its share dwindle further. That is small wonder: those who became accustomed to imbibing more frequently at home during the pandemic are likely to maintain the habit.
