Australia Liquor Market Size, Share, Growth Analysis Report and Forecast Trends (2024-2032)

Australia Liquor Market Trends

The Australia liquor market is experiencing significant growth, particularly within the premium segment, fuelled by rising demand for craft beers and artisanal spirits. Consumer preferences are diverse, with a wide variety of options, including beer, wine, and ready-to-drink beverages. Australia's wine industry plays a key role in boosting exports to regions like Asia, the UK, and the US. The craft beverage trend, alongside the growing appeal of low-alcohol drinks, continues to present new opportunities. In September 2023, Brown-Forman Australia introduced a new sustainable packaging initiative for its spirits brands, including Jack Daniel’s. This move reflects the company’s commitment to reducing its environmental impact through recyclable materials and eco-friendly packaging.

Australia’s wine industry is driving strong export growth, bolstering the overall Australia liquor market revenue. The rise of online sales has made alcoholic beverages more accessible, while the tourism and hospitality sectors continue to fuel consumption. Alcohol consumption remains deeply rooted in Australian culture, ensuring steady demand. Seasonal events, such as holidays and festivals, contribute to spikes in sales, providing critical growth opportunities. According to Wine Australia, the country had a total vineyard area of 146,244 hectares in 2022, with South Australia accounting for 52% of this land.

Australia Liquor Market Growth

The growth of the Australia liquor market is driven by the country’s strong retail network, ensuring wide availability of alcoholic beverages. Ongoing innovation in product flavours and packaging keeps the market dynamic and appealing. Celebrity endorsements and influencer collaborations boost brand visibility, while social drinking remains a cultural staple, sustaining regular consumption. Sustainability practices in production are becoming increasingly important to eco-conscious consumers seeking environmentally friendly options. In August 2023, McWilliam’s Wines launched a new wine series, "McWilliam’s Earth," which focuses on sustainable and biodynamic farming methods. This range is designed to cater to the rising demand for natural wines and reduce the environmental impact of production.

Sourcing local ingredients, especially in craft beer and spirits, is a key trend of Australia liquor market. This shift not only supports local industries but also reduces reliance on imports. Exclusive liquor experiences, such as high-end wine tastings, appeal to premium consumers, while innovative alcohol-infused products attract more adventurous buyers. Government subsidies and trade agreements provide further support to the sector, and flexible pricing ensures the market meets the needs of a wide range of consumers. In July 2024, Pernod Ricard Australia introduced "Down Under Distillery," a new vodka brand that uses locally sourced ingredients, tapping into the rising demand for craft spirits and premium Australian-made liquors.

Australia Liquor Market Insights

• Industry reports show that domestic wine sales in Australia totalled 444 million litres during the 2022–2023.
• The Australian Trade and Investment Commission (Austrade) reported that the value of beer exports from Australia reached USD 200 million in 2022.
• According to the Australian Bureau of Statistics (ABS), approximately 18.5% of adults consumed more than 10 standard drinks in 2022.
• The market share in Western Australia is expected to experience substantial growth, with a forecasted CAGR of 17.4% between 2024 and 2032.

Industry News

March 2024

Carlton & United Breweries introduced a new range of low-alcohol beers, targeting Australia's increasingly health-conscious consumer segment. The innovative flavours of the new products aim to capture a greater share of the rapidly expanding low-alcohol market.

February 2024

Treasury Wine Estates has opened a new vineyard in the Barossa Valley. This expansion is designed to boost production and meet the rising demand for premium Australian wines, especially in the Asia-Pacific region, thereby enhancing export opportunities.

Australia Liquor Market Drivers

Premiumisation and Craft Beverages

The Australia liquor market has experienced a notable shift towards premiumisation, driven by growing consumer demand for higher-quality products. Craft beers, artisanal spirits, and fine wines are becoming increasingly popular, particularly among younger, more selective drinkers. This trend reflects a change in consumer preferences, with a clear desire for unique, locally produced items with exceptional flavour profiles. More consumers are willing to pay a premium for craft beers, limited-edition spirits, and top-tier wines, seeking out distinctive experiences. This surge in demand for premium products is further fuelled by continuous product innovation and strong branding, making it a key market trend. In July 2024, Four Pillars, a leading Australian gin brand, launched an ultra-premium gin. The release features rare, native Australian botanicals and refined distillation methods, targeting discerning gin enthusiasts who value unique, artisanal products crafted to the highest standards.

Health-Conscious and Low-Alcohol Options

Health-conscious drinking is becoming a significant trend in Australia liquor market. Many consumers, particularly millennials and Gen Z, are turning to low-alcohol or alcohol-free drinks in response to rising awareness of alcohol's impact on health and wellbeing. This shift is particularly noticeable in the growing popularity of low-alcohol beers, low-calorie wines, and non-alcoholic spirits. There is also a surge in demand for healthier, functional beverages, including those with fewer calories or infused with natural ingredients. The increasing emphasis on moderation and mindful drinking is creating new opportunities for innovation, with brands offering more low-alcohol alternatives to cater to this expanding market. In March 2024, Pure Blonde launched a low-alcohol version of its popular beer, containing just 3% alcohol by volume. This new product provides a lighter option without compromising on taste, aligning with the rising trend for healthier, low-alcohol drinks.

Opportunities in the Australia Liquor Market

Sustainability and Eco-Friendly Production

Sustainability has become a central focus in the Australia liquor market, with more brands adopting eco-friendly practices in production, packaging, and distribution. Growing consumer demand for environmentally responsible products has encouraged many producers to implement sustainable farming methods, reduce carbon emissions, and use recyclable or biodegradable packaging. The wine sector, in particular, is at the forefront, with a rise in biodynamic and organic practices. Consumers are increasingly favouring brands that prioritise environmental sustainability, and this trend is expected to grow as demand for greener, more ethical production methods continues to rise across the industry. In December 2023, Sustainable Wine Co. launched a new range of certified organic wines made from biodynamic vineyards. These wines are produced using eco-friendly techniques that focus on soil health and environmental conservation, catering to eco-conscious consumers seeking sustainable alternatives in the wine market.

Market Restraints

The Australia liquor market faces several significant challenges. Strict government regulations and high alcohol taxes hinder market entry and raise prices for consumers. Increasing health concerns about alcohol, along with the rise of non-alcoholic alternatives, are shifting consumer preferences towards healthier choices.

Supply chain disruptions and escalating logistics costs further limit product availability, particularly in remote areas. Additionally, growing price sensitivity and concerns over environmental sustainability are forcing brands to adapt. Climate change is also affecting wine production, while changing social attitudes towards alcohol consumption poses further obstacles. Intense competition from established brands makes it difficult for new entrants to thrive in this competitive market.

Australia Liquor Industry Segmentation

“Australia Liquor Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Tequila
• Whiskey
• Vodka
• Rum
• Brandy
• Gin

Market Breakup by Distribution Channel

• Supermarkets and Hypermarkets
• Specialty Stores
• Online
• Convenience Stores
• Others

Market Breakup by Region

• New South Wales
• Victoria
• Queensland
• Australian Capital Territory
• Western Australia
• Others

Australia Liquor Market Share

By Type Insights

According to the Australia liquor market analysis, whiskey remains a popular choice due to its versatility and rich flavour profile. The whiskey market is expected to grow significantly, with a projected CAGR of 4.7% between 2024 and 2032. Whether enjoyed neat, on the rocks, or in cocktails, whiskey offers a premium drinking experience. The increasing demand for aged and craft whiskeys caters to a growing base of connoisseurs, further solidifying whiskey’s prominence in Australia’s liquor scene. In September 2024, Tasmania's Lark Distillery released a limited-edition single malt whiskey. This release highlights local ingredients and craftsmanship, drawing on Tasmania's cool climate to create a rich, smooth flavour. The exclusive whiskey targets connoisseurs in search of premium, small-batch Australian spirits.

The growth of the Australia liquor market is driven by vodka's versatility in cocktails and the rising demand for premium, craft spirits. The vodka segment is forecast to grow with a CAGR of 4.5% between 2024 and 2032. As a clear, neutral spirit, vodka pairs well with a wide range of mixers, making it a popular choice in bars and social settings. The rising demand for low-calorie and low-sugar options further enhances its appeal to health-conscious consumers. In August 2024, Billionaire Vodka launched its luxury range in Australia, featuring a super-premium vodka made from rare, fine grains and triple-distilled for purity. The vodka’s upscale packaging and refined flavour profile are designed to attract discerning consumers seeking a unique, high-end drinking experience.

By Distribution Channel Analysis

According to the Australia liquor market report, supermarkets and hypermarkets dominate the industry by offering convenience and a wide range of alcoholic beverages, from mainstream brands to premium options. This segment is expected to experience significant growth, with a projected CAGR of 5.4% between 2024 and 2032. Consumers benefit from competitive pricing, promotions, and the ease of one-stop shopping. These retailers play a key role in making alcohol more accessible, which drives growth in both sales volume and consumer engagement. In September 2024, IGA introduced a range of organic spirits in its stores across Australia. Sourced from organic distilleries, the collection includes gin, vodka, and rum, targeting health-conscious consumers looking for clean, eco-friendly options. IGA aims to capitalise on the growing eco-friendly trend within the liquor market.

The Australia liquor market benefits from the growing influence of speciality liquor stores, which provide expert knowledge and a curated selection of premium and niche alcoholic beverages. This segment is expected to experience significant growth, with a projected CAGR of 4.4% between 2024 and 2032. These stores, with their focus on high-end products, rare imports, and craft spirits, cater to enthusiasts and connoisseurs by offering personalised service and access to unique, hard-to-find brands, enhancing the overall shopping experience. In June 2024, The Drink Hive, a premium speciality liquor store in Melbourne, launched an exclusive selection of small-batch craft spirits sourced from Australian distillers. The store specialises in limited-edition releases, attracting serious collectors and enthusiasts in search of unique, artisanal products not available in larger retail outlets.

Australia Liquor Market Regional Insights

New South Wales Liquor Market Insights

New South Wales liquor market thrives due to its large, diverse population and dynamic hospitality sector. Growing consumer interest in premium spirits and local products, combined with strong tourism, supports ongoing growth and innovation. The market is expected to grow at a CAGR of 4.5% between 2024 and 2032. In 2023, New South Wales accounted for more than 30% of Australia's total alcohol sales, with local brands such as Stone & Wood Brewing and Lark Distillery at the forefront of production, according to NSW Liquor & Gaming.

Queensland Liquor Market Trends

Queensland’s liquor market is set to grow at a CAGR of 4.8% between 2024 and 2032. The state benefits from a strong tourism industry, a rising demand for craft beverages, and an increasing preference for low-alcohol and health-conscious options, boosting local production and the popularity of regional spirits. In 2023, the market grew by 5%, driven by local craft brands like Balter Brewing and Bundaberg Rum. Queensland is also a major exporter of rum, according to the Queensland Government.

Western Australia Liquor Market Dynamics

According to the Australia liquor industry analysis, Western Australia’s liquor market is bolstered by its rich wine heritage and a growing craft beer scene. The region’s emphasis on premium, locally sourced products and eco-friendly trends has spurred strong consumer demand. In 2023, local wine brands like Houghton and Vasse Felix were major players in production, with the state producing over 40 million litres of wine, according to the Department of Local Government, Sport, and Cultural Industries.

Competitive Landscape

The Australia liquor market key players have created a diverse range of products, including premium wines, spirits, and ready-to-drink beverages, along with pre-mixed cocktails and high-quality wines. They have earned a strong reputation for their innovative approach, blending traditional production techniques with modern consumer trends. With a solid presence in both domestic and international markets, these companies are dedicated to maintaining high standards of quality and sustainability, while providing premium drinks that cater to the ever-changing preferences of consumers.

Key Industry Players

Diageo Plc: Diageo, established in 1997 and headquartered in London, is a global leader in alcoholic beverages. Known for brands like Johnnie Walker, Guinness, and Tanqueray, it operates in over 180 countries, focusing on premium products, innovation, and sustainability to drive growth and market leadership.

Pernod Ricard S.A.: Founded in 1975 and headquartered in Paris, Pernod Ricard is a global leader in spirits and wine, with famous brands like Absolut, Chivas Regal, and Jameson. The company champions sustainability and responsible drinking while expanding its global presence and portfolio of premium, high-quality products.

Bacardi-Martini Australia Pty Ltd.: Bacardi-Martini Australia, a subsidiary of Bacardi Limited, is known for iconic brands like Bacardi rum and Martini vermouth. Established in the 19th century, the company focuses on premium offerings, innovation, and sustainability, with a strong presence in Australia’s spirits market, offering both classic and contemporary products.

Dictador: Established in 1913 and based in Cartagena, Colombia, is renowned for producing luxury aged rums. The brand is recognised for its innovative distillation process and exceptional craftsmanship, establishing itself as a leading name in premium rum globally, known for its distinctive flavours and high-end offerings.

Other key players in the Australia liquor market report are Asahi Holdings (Australia) Pty Ltd., Lion Pty Ltd., Beenleigh Rum, Vok Beverages Pty Ltd., and Accolade Wines, among others.

Recent Developments

July 2023

Pernod Ricard Australia introduced a new vodka brand, *Down Under Distillery*, focusing on locally sourced ingredients. The brand seeks to capitalise on the growing demand for craft spirits and premium Australian-made liquors.

March 2023

Coles Liquor expanded its private label offerings with a new selection of affordable wines sourced from Australia's top wine regions. The collection is designed to appeal to budget-conscious consumers seeking quality wines at competitive prices.