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The global alcoholic drinks market size is projected to reach US$2,001 billion by 2031, according to a new research report.

 A new report, led by market research company Straits Research, has illustrated how last year the global alcoholic drinks sector was valued at US$1,603 billion but now looks set to grow at a compound annual growth rate (CAGR) of 2.5% between 2023–2031.

According to the findings, the highest global market share for alcoholic beverages is currently held by Europe, due to “the region’s significant players and the high demand” for alcoholic drinks.

The report has also outlined how “growth in the global population of young adults and the subsequent rise in demand for alcoholic beverages are the two main factors driving the world market” for alcoholic drinks.

In Asia Pacific, the alcoholic drinks industry is anticipated to expand quickly due to the region’s large young adult population and increased demand for alcoholic drinks. The report highlighted how “alcoholic beverage sales in Asia-Pacific are anticipated to increase at a 2.5% CAGR. Because of changing lifestyles, more disposable income, and a young population, the Asia-Pacific area is currently seeing an upsurge in alcohol use”.

Researchers noted how “the region’s increased alcohol consumption is partly due to the acceptance of western culture, the perception of drinking as a social and leisure activity, and an increase in parties and festivities”.