It's not surprising that the online alcohol market saw a significant spike during this pandemic. Drizzly, a leading online alcohol marketplace, saw sales jump 700 percent year-over-year. In comparison, the average order size increased by 50 percent. The pandemic affected the buying habits of consumers, who shifted to new categories and changed their shopping patterns. Liz Paquette is Drizly's director of consumer insight. She says that historically, wine was the most popular drink on the site, but in the past three months, liquor has taken the top spot. Drizly's spirits category share increased during this period, from mid-March to May, reaching 39.6 percent, up from 37.4 percent in the same period of 2019.
Wine was responsible for 38.4 %, down from 41.7 % during the same period in 2019, and beer accounted for 19.5 %, an increase from 18.7 %). iOS and android app development has played a pivotal role in the rise in popularity of alcohol delivery apps across many countries, due primarily to their unrivalled convenience. They have caused quite an uproar in the market - we will investigate compelling numbers and data which substantiate this trend before exploring potential future growth in this decade - this article strives to answer all inquiries regarding this industry!
Industry Stats and Growth Projection
Online alcohol sales started as liquor stores and bars saw their sales plummet due to Covid-19 restrictions. Before the pandemic, startups such as Drizly were able to generate some interest in online alcohol sales and delivery. The variation in restrictions between cities and countries is a major obstacle to the growth of online alcohol sales. There are different laws in each place that govern alcohol sales. These regulations have prevented the industry's growth from being as significant as it would have been in its absence. The delivery of alcohol and the alcohol e-commerce sphere will see positive changes with time. Here are some important statistics about online alcohol sales. We will also look at famous brands, alcohol delivery, demographics, and more.
- In 2022, the United States' alcohol beverage industry is expected to reach $146 billion.
- The e-commerce of alcohol is expected to grow by over 66% between 2020-25. It's estimated that the market will reach $42 billion in the same period.
- Alcohol e-commerce is expected to grow significantly in the United States, fueled by new consumer insights about ordering alcohol online.
- The e-commerce sector is expected to account for about 6 percent of off-trade alcohol sales.
- According to the report, 16 major markets are identified, including Brazil, Australia, China, Canada, Colombia, France, Germany, Italy, Japan, Mexico, Netherlands, Nigeria, Spain, South Africa, 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% by 2020, during the height of the pandemic.
- The United States is forecast to have the highest growth in e-commerce due to its annual average growth of more than 20%.
Top Trends for Alcohol Delivery App Development
E-commerce has evolved over the years into a sophisticated and nuanced channel. Digital engagement is now an essential part of the customer experience. The off-trade landscape is changing over time as e-commerce, on-premise, and omni-channel continue to grow. Here are the top trends in the industry that will guide the alcohol and beverage delivery business by 2022.
Emergence and Non-Traditional Luxury Categories
IWSR expects to see a recovery in the same range as the growth rates seen between 2014-19. According to general expectations, the future will be marked by an increase in wealth and the emergence of new players in the US and Asian markets. According to the IWSR research, 39% of urban wealthy Chinese alcohol consumers claimed that they had spent more than RMB500 (approximately US$79) on a bottle of alcohol at home during the first half of 2021. An increase of new consumers in the spirits industry has created an enormous surge in change within this global industry. This can be traced to changes such as diversifying market segments, and rising alcohol niche categories such as agave spirits, Irish whisky, Japanese whiskey, and US whiskey which each appear poised for significant growth through 2020. At the same time, mobile app development solutions are experiencing dynamic shifts mirroring that seen within spirits production itself.
Substitutes vs. Blenders
As a result of societal norms, consumers are increasingly accepting low-alcohol and no-alcohol products. Growth is being seen in channels that sell non-alcoholic beverages for adults. Growth is seen in e-commerce, retailers, and liquor stores. In the main markets, the majority of low or no-alcohol beverage products are called "Substitutes." These products are primarily for those who want to drink a milder version of alcoholic drinks on special occasions. According to IWSR's consumer research in the UK, we can see that 40% of those who drink no alcohol or very little alcohol are "Substitutes."
These people usually fall into the Gen Z category and the millennial group. Gen Z (46%, millennials 41%, and Boomers 36%, respectively) are both more likely to choose substitutes. We can now see that some mobile app development companies are leveraging the new technology to create products that are alcohol-free but still offer functional or mood-enhancing benefits. These products are mainly made up of ingredients such as CBD, adaptogens, and nootropics. These products are designed to improve the "feeling" of a consumer while still being health-conscious.
A Change in the e-Commerce
In 2020, the value of online sales will increase by +43% across 16 major markets. The number of alcohol retailers has increased. The business models they use are also more diverse. Consumers are no longer interested in the differences between online and offline alcohol purchasing. This has led to a blurring of the lines between online alcohol channels. As an example, omnichannel retailers can establish logistics partnerships with services on demand. This could offer faster delivery.
The Return of On-Premise
People are spending more time at home and on local premises than they do outside. IWSR's findings suggest that premium consumption may shift from on-trade to home-premise. The two-year period spent at home will transform the typical experiences when consumers return to the trade. At-home subscription services and cocktail-making are two of the premium experiences available. The consumers will, therefore, be more aware of the increased prices and less tolerant of poor-quality products at bars, pubs, and restaurants.
Early signs of premiumization
In 2020, the RTD launches will be more dominated by premium products and higher-than-volume consumers. This indicates a pivot towards premiumization. Moreover, the RTD category is a major part of the international RTD market. The shift towards premiumization will attract spirit and wine brands. Although flavor is still the primary factor that consumers use to select RTDs in many markets, the liquor base is also a key motivator.
Diversification
People are choosing new drinks or switching between different beverage options. According to IWSR, people are interested in a variety of products, including craft beer, Japanese whisky, hand seltzers, and wine. Major drink companies are diversifying their portfolio by exploring previously unexplored beverage categories to meet shifting consumer tastes and preferences. Furthermore, soft drinks and traditional alcohol have increasingly blurred together; thus, requiring alcohol delivery app development companies as partners in shaping this emerging marketplace.
Commitments to Sustainable Practices
In the beverage industry, sustainable packaging is a top priority for most corporate and social responsibility agendas. After events such as COP26, there have been some concerns about climate change. Consumers and industry influencers are asking drinks companies to demonstrate a commitment to sustainable practices. Solidarity between local businesses and brands is another important trend in a pandemic. This is closely related to the sustainability mindset of consumers. According to research by IWSR, about 48% of US liquor buyers are influenced by the sustainability and environmental initiatives of a company when making purchase decisions.
External Pressures
Other factors also affect the production and distribution of beverages in the world. There are also other factors, such as the increasing cost of packaging, the size of containers, and issues relating to the supply chain. Companies may need to be more tactful and adapt some of their near-term brand and market strategies to fit the economic and operating landscape. Brand owners should also be aware of false positives that may appear in 2020 and 2021, which will reflect past industry trends. In 2020 and 2021, the purchasing increases in domestic markets will be corrected downwards.
Top Players in the Market For On-Demand Alcohol Deliveries
Apps for alcohol delivery are changing the way people access their favorite drinks. Alcohol delivery apps can be used for any occasion, whether you're planning a romantic night in, a gathering with friends, or want to enjoy your favorite drink. This section will cover the top Alcohol delivery apps.
Drizly
Drizly, as one of the first companies to enter the alcohol delivery industry, has been consistently rated among the best options by customers. Drizly offers a wide range of alcoholic beverages, including liquors and wines. Its easy-to-use user interface and rapid delivery make it a great option for many.
Instacart
Instacart, which is known for its grocery delivery service, also offers alcohol delivery in a number of different areas. It has a partnership in place with local liquor stores, which allows its customers to seamlessly include alcohol in their grocery orders.
Saucey
Saucey is an alcohol delivery specialist with a wide selection of beers, spirits, and wines. They are known for their quick delivery service and can usually deliver within 30 minutes of certain cities.
Minibar
Minibar, an alcohol delivery app, offers a carefully selected selection of wines, spirits, and beers. The app provides detailed information about the products and offers recommendations, making it easier for customers to find new options.
Uber Eats
Uber Eats is popular for delivering meals, but it also delivers alcohol in a number of places. This is a great option for those who want to add alcohol to their food order.
Postmates
Postmates, another flexible delivery service, also offers alcohol delivery. They work with local liquor stores and offer quick delivery.
GoPuff
GoPuff delivers alcohol and a wide range of other goods. The company focuses on offering items from convenience shops, making it a one-stop shop for all of your needs.
Swill
Swill is a company that specializes in providing alcohol. It also offers a user-friendly website. Swill provides a wide range of alcohol-based beverages that allow customers to easily locate their favorite drinks.
Alcohol Delivery Business Challenges
The easy availability of alcohol via delivery businesses increases the risk of misusing it. Alcohol abuse can be a problem. Delivery services can be a catalyst for alcoholism, as they are expected to visit every location. This is particularly harmful to recovering alcoholics, as their self-control is undermined when alcohol is easily available. There should also be a location-based restriction to prohibit the sale of alcohol at places such as educational institutions, offices, and hostels. To prevent minors from consuming alcohol, the restriction should also be based on age and identification. Without such regulations, alcohol e-commerce delivery businesses will be subject to much scrutiny and a future decline.
What the Future Holds For the On-Demand Alcohol Delivery Market
The market for alcohol on demand is still in its infancy. Still, it has a lot of potential for startups and entrepreneurs. These apps offer a variety of growth opportunities that will only increase with time. In the future, as consumer awareness about these apps that deliver liquor on demand increases, they will be adopted more, expanding their market. This presents a great opportunity for new players with their unique business models and offerings to jump on board. Global alcohol consumption will increase over time, given the rapid advancement of lifestyles.
A report states that the global market for alcoholic beverages will reach $1600 Billion by 2024. These figures highlight the enormous scope and potential of this market for new businesses. Currently, the industry is not being driven by fierce competition, as only a handful of on-demand alcohol delivery apps dominate the market. The industry is expecting growth, and it awaits new players who can contribute to the rapid growth. In many countries, the delivery of liquor is now legal. Many of the rules and guidelines that were once restrictive to new players have been relaxed or removed. This opens up the possibilities for growth to newer players.
Takeaway
During the pandemic, there was a noticeable rise in demand for alcohol deliveries, which increased sales. The legalization of marijuana also has increased the demand for alcohol delivery and beverages infused with cannabis. Instacart, Uber Eats, and other online marketplaces are expanding their services to deliver alcoholic beverages. Alcohol delivery services may have difficulty managing government rules, such as those that require age verification. On-demand alcohol delivery has a bright future, and the chances of success for new players are high. To crack the market, you need a diligent team, an experienced leader, and strong technical support. Suppose you're also considering entering this market and are planning to launch an on-demand alcohol app that could be the next Uber for Alcohol, then contact alcohol delivery app development company like JPLoft. We will help you design the most suitable, unique, and user-friendly application for your business.
FAQs
1. What is the current alcohol delivery market Size?
While alcohol delivery market Size differs by region, alcohol delivery market estimates range between billions and trillions worldwide. Exact figures depend on market dynamics and consumer habits.
2. Who are the key players in the alcohol delivery market?
Key players in the Alcohol Delivery Market include established liquor stores, online marketplaces like Amazon Marketplace, and dedicated alcohol delivery services like Drizly, Uber Eats, or DoorDash.
3. Are there opportunities for new entrants in the alcohol delivery market?
Yes, newcomers to this sector may find opportunities in emerging markets and underserved regions. Innovations in delivery technology, as well as business models offering unique offerings, could open doors for entry.
4. How has the alcohol delivery market evolved?
Since 2011, the Alcohol Delivery Market has experienced substantial growth driven by on-demand delivery services. This trend accelerated during the COVID-19 pandemic as more consumers sought contactless shopping solutions.
5. What type of alcoholic beverages can I find here?
The market typically provides a selection of beer, wine, spirits, cocktails, and non-alcoholic alternatives depending on local regulations.
6. What are the regulatory challenges in the alcohol delivery market?
Challenges vary by region and can include age verification, licensing requirements, and restrictions on delivery hours. Compliance is of utmost importance for businesses in this market.
7. Are there any trends impacting the alcohol delivery market?
Yes, technological innovations like mobile apps, GPS tracking devices, and AI-powered route optimization services have greatly enhanced both the efficiency and user satisfaction of alcohol delivery services.
8. What are consumer preferences shaping the alcohol delivery market?
Consumers increasingly prioritize convenience, speed, and variety when it comes to ordering alcoholic beverages online for delivery. Furthermore, they appreciate contactless payments with real-time order tracking features.
9. Can the alcohol delivery market be environmentally sustainable?
Some businesses in this industry are taking steps towards sustainability by adopting eco-friendly packaging practices and encouraging responsible consumption, which could become an attractive factor for customers. Sustainability could become a differentiating factor among buyers.
10. What are the global growth prospects of the alcohol delivery market?
The Alcohol Delivery Market is expected to experience steady expansion as consumer demand for convenience remains strong. Market expansion into new regions and innovations in delivery technology could contribute to this success.
