The Global Online Alcohol Market Enters a New Era of Sustainable Growth

The global online alcohol market is poised for a period of sustainable growth, with ecommerce sales forecast to surpass USD 36 billion by 2028. 

This represents a 20% increase in market value over the next five years, according to the latest data from IWSR’s Ecommerce Strategic Study. After years of pandemic-driven volatility, the market is now stabilizing and transitioning into a more predictable growth phase.

The study, which analyzes the online alcohol market across 18 key countries—including Australia, the United States, China, and the United Kingdom—shows that digital platforms are no longer just purchasing channels but have evolved into spaces for brand discovery, consumer engagement, and influence. The role of ecommerce in alcohol sales is expanding beyond simple transactions, as more consumers rely on online research to guide their in-store decisions.

Guy Wolfe, Head of Ecommerce Insights at IWSR, highlights the pivotal shift, stating, “While alcohol ecommerce has been growing in importance, it is now clear that its influence extends far beyond online transactions. Digital platforms play a critical role in driving offline sales, with consumers increasingly using them for research before making in-store purchases.”

Key Findings from IWSR’s Ecommerce Strategic Study

1. Steady Growth of USD 6 Billion
   The online alcohol market is expected to grow by 20% in value from 2023 to 2028, adding USD 6 billion in incremental growth. The largest contributions to this growth will come from China’s online marketplaces and the omnichannel sector in the United States. Smaller markets, such as Japan, Australia, and Mexico, will also play important roles in this expansion.
2. Spirits Lead the Charge
   Spirits, particularly agave-based drinks and whisky, will be the key drivers of growth, though wine and beer will also see steady increases. Growth in China and Italy is particularly noteworthy for these categories, with wine seeing strong performance in the former and beer in the latter.
3. China’s Social Commerce Surge
   Social commerce platforms, particularly in China, are expected to revolutionize the ecommerce alcohol landscape. Platforms like Douyin (China’s version of TikTok) are combining shopping with entertainment, allowing consumers to purchase directly from influencers. While alcohol sales via social media are restricted in many regions, China's digital environment is uniquely conducive to social commerce.
4. U.S. Focuses on Whiskey
   The U.S. market continues to be a significant player in the online alcohol scene. American whiskey, especially premium products like bourbon and rye, is expected to lead growth. A recent IWSR survey found a surge in online alcohol purchases, particularly among Millennials, signaling a broader shift towards online buying in the U.S.
5. Growth in Smaller Markets
   Markets like Japan, Australia, and Brazil are expected to contribute notably to global growth, though many smaller markets have seen ecommerce alcohol sales return to pre-pandemic levels. Italy, however, is set to experience the fastest growth in online alcohol shopping, driven in part by supermarkets increasing their investment in online grocery services.
6. Consumer Behaviour Shifts
   Consumer behavior has stabilized post-pandemic, with value-seeking behavior being a top priority due to economic pressures. However, online shoppers still prioritize discovery and experimentation, with 24% of shoppers citing the discovery of new brands as a key reason to shop online.
7. Research Drives Purchases
   Ecommerce is now a critical tool for product research, with 63% of online alcohol buyers conducting extensive research before making a purchase. Digital sources such as brand websites, product reviews, and comparison tools are integral to consumers’ purchasing decisions. Price comparison and product discovery continue to be significant drivers in online purchasing behavior.

The Future Outlook

As the online alcohol market matures, it is clear that the digital landscape will play an increasingly important role in shaping consumer habits. The shift from pandemic-driven spikes to sustainable growth indicates that ecommerce will continue to evolve as an essential component of the alcohol market, not just as a sales channel but as a space for brand engagement and discovery.

With key markets such as the U.S., China, and Italy leading the charge, and social commerce transforming how consumers interact with brands, alcohol companies must prioritize a robust online presence. For both large and small players, adapting to this new era of ecommerce will be crucial for staying competitive and capturing consumer attention across multiple channels.

Source: IWSR