NEWS
IWSR: USA TO OVERTAKE CHINA AS WORLD’S BIGGEST ALCOHOL ECOMMERCE MARKET IN 2021
By Susan Lewis
1-12-2020
Credit: Mark Konig/Unsplash
USA will overtake China as world’s biggest alcohol ecommerce market in 2021 after witnessing a value growth of over 80% in 2019-2020, according to findings by IWSR’s newly released 2020 Global Ecommerce Strategic Study on 10 core markets around the world.
IWSR’s researchers also forecast that the value of alcohol ecommerce across the 10 markets will increase by 42% this year, to reach USD24 billion. This compared to a much lower 11% value growth in these markets in 2019.
The report said that due to China’s relative matured ecommerce market, the sector reported a value growth of 23% in 2019-2020, this seemingly high growth rate is much lower than that of other major markets in particular USA which has bigger room to grow.
After witnessing a value growth of over 80% in 2019-2020, IWSR predicts that the USA will overtake China to become world’s largest alcohol ecommerce market by the end of 2021.
IWSR expects USA’s alcohol ecommerce value to grow six-fold between 2019 and 2024, from half that of China to nearly double.
The report estimates that ecommerce will account for 7% of total off-trade beverage alcohol volume in USA by 2024, compared to 6% in China.
Across the 10 core markets - Australia, Brazil, China, France, Germany, Italy, Japan, Spain, UK, and USA - IWSR predicts that total value of alcohol ecommerce will increase by 42% this year to reach USD24 billion.
The report also examined an additional 10 “markets to watch”, which are Mexico, Colombia, Argentina, Netherlands, Israel, Nigeria, Kenya, South Africa, Singapore and the Philippines. Across all the 20 markets, IWSR expects the total value of alcohol ecommerce to exceed USD40 billion by 2024.
Guy Wolfe, Strategic Insights Manager at IWSR Drinks Market Analysis, said: “The forecast size and growth of ecommerce 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.”
(the writer can be contacted at: info@thewinechronicle.com)
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