Arielle Cruz
The alcohol industry is dynamic and ever-changing, with consumer preferences and economic pressures driving the market. In 2024, the United States led the world in alcoholic beverage e-commerce, with global revenues projected to reach $67 billion by 2029. Despite the dominance of brick-and-mortar sales, online alcohol sales are steadily growing, with 58% of consumers using third-party apps to order alcohol. Wine e-commerce is particularly prominent, with Vivino.com and Naked Wines as key players.
| Characteristics | Values |
|---|---|
| Alcohol e-commerce market growth | Forecasted to reach 67 billion U.S. dollars by 2029 |
| Leading market for alcoholic beverage e-commerce in 2024 | United States |
| Alcohol e-commerce sales growth in the U.S. in 2024 | 8.4% |
| Percentage of consumers who ordered alcohol delivery more in 2024 than in 2023 | 40% |
| Consumers who used a third-party app to order alcohol in the past six months | 58% |
| Consumers who ordered wine and champagne for delivery | 59% |
| Consumers who ordered beer for delivery | 56% |
| Consumers who ordered RTD cocktails for delivery | 56% |
| Percentage increase in mezcal consumption in the US from 2021 to 2023 | 53.45% |
| Percentage of 18-34-year-olds likely to choose a premium drink | 54% |
| Percentage increase in sales of no- or low-alcohol beverages from March 2020 to March 2024 | 54% |
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What You'll Learn
Alcohol e-commerce
While brick-and-mortar sales remain dominant, a notable shift towards online alcohol purchases has occurred. In 2024, 19% of global shoppers utilised online marketplaces like Amazon and Mercado Libre for browsing and purchasing alcoholic beverages. This trend is particularly prominent among younger consumers, with 54% of 18-34-year-olds opting for premium drinks, compared to 35% of those over 55.
The leading online distribution channels for alcoholic beverages vary. Wine-specific platforms like Vivino.com and Naked Wines have gained traction, with the latter generating £290 million in global revenues in 2024. However, broader online retailers like Amazon and Mercado Libre are also popular choices for consumers seeking a wider range of products.
The top choices for alcohol delivery include wine and champagne (59%), beer (56%), and RTD cocktails (56%). The convenience and accessibility of online alcohol purchases have contributed to the growth of alcohol e-commerce, particularly among consumers who value premium products and the ease of home delivery.
As the alcohol e-commerce market evolves, understanding consumer trends and preferences is essential for businesses to adapt their strategies and capture this growing market segment. The steady growth of alcohol e-commerce presents opportunities for both established brands and new entrants in the industry.
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Third-party apps
However, the involvement of unlicensed third-party entities in alcohol sales has raised regulatory concerns. In the US, only licensed businesses can sell alcohol to consumers, creating a complicated situation for unlicensed online marketplaces, delivery apps, and services aiming to facilitate alcohol sales. The California Department of Alcoholic Beverage Control (ABC) has been particularly active in addressing these concerns, issuing advisories and forming working groups to provide guidance and clarify regulations.
One of the significant challenges associated with third-party alcohol delivery is ensuring compliance with age verification requirements. Investigations by state departments and news organizations have revealed that minors can easily order alcohol through these apps without proper ID checks. While liability falls on the licensee for age verification, the involvement of third-party platforms adds complexity to the enforcement of laws prohibiting alcohol sales to minors.
To address this issue, some third-party platforms, such as Drizly, have implemented safeguards, including Internet ID verification and training for delivery drivers. Additionally, third-party services often structure their operations to avoid the need for a license. For example, they may sell software services or charge transaction fees unrelated to the alcohol sale itself. Nevertheless, the regulatory landscape surrounding third-party alcohol delivery continues to evolve, and new laws may be expected to address the changing dynamics of alcohol sales.
The impact of third-party apps on the alcohol industry extends beyond convenience and regulatory challenges. The pandemic played a pivotal role in accelerating the adoption of third-party delivery services, with consumers embracing the option of cocktails-to-go and remote purchasing. This shift in consumer behaviour has had a lasting impact, with companies like Instacart reporting significant revenue growth and increased gross profit, even after the easing of pandemic restrictions.
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Alcohol delivery
Prior to the pandemic, curbs on shipping alcohol were common, with only 12 states allowing some method of delivery for all types of alcohol, and 31 states permitting the delivery of wine and beer to consumers' homes. During the pandemic, innovative apps and online services began to offer alcohol delivery, but the legal status of these services is sometimes unclear.
One example of an alcohol delivery service is Drizly, which offers on-demand delivery of beer, wine, and liquor from local stores in under 60 minutes. Another is Saucey, which delivers alcohol to a customer's address. These services have increased consumer choice and convenience, and helped to boost economic activity.
While alcohol delivery has faced some legal and regulatory challenges, it has also provided new opportunities for businesses and consumers, particularly in light of the pandemic. It remains to be seen whether the temporary relaxations of alcohol delivery laws will become permanent fixtures in the post-pandemic world.
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In-store browsing
The preference for in-person shopping in the US is reflected in the fact that, in 2024, the United States was the leading market for alcoholic beverage e-commerce worldwide, experiencing growth of 8.4%. This indicates a stabilisation of the online alcohol market in the post-pandemic era.
While the US leads the world in online alcohol sales, the preference for in-store browsing persists. This may be due to a variety of factors, including consumer preference for the in-person shopping experience, the ability to physically inspect products before purchase, and the convenience of immediate access to purchases without waiting for delivery.
In addition, the regulatory landscape surrounding alcohol sales in the US may also play a role in the continued preference for in-store purchases. Alcohol sales are heavily regulated, and online retailers must navigate complex legal requirements to ensure compliance with state and federal laws. This may result in a more limited selection of alcohol products available online compared to physical stores, which could deter some consumers from purchasing alcohol through e-commerce channels.
Furthermore, cultural and social factors may also influence the preference for in-store alcohol purchases. Social norms and traditions surrounding alcohol consumption often involve shared experiences and immediate gratification, which can be more readily accommodated through in-person shopping and on-site consumption.
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Online marketplaces
One of the most prominent online marketplaces for alcohol sales in the US is Amazon. Amazon offers a wide range of alcoholic beverages at varying price points, along with ratings and reviews from different sellers. The platform ensures safe and reliable delivery and requires confirmation of the buyer's age upon delivery.
Another popular online marketplace for alcohol is Wine Insiders, which specializes in offering a diverse selection of wines at affordable prices. Wine Insiders aims to make wine shopping convenient and enjoyable for customers, providing wine-serving tips and educational content on their website.
Drizly, now owned by Uber, has also made significant strides in the US alcohol e-commerce market. With a guarantee to deliver drinks within 60 minutes, Drizly offers a vast selection of wines, spirits, beers, liqueurs, and more through its well-designed app. Drizly is advantageous for retailers as it provides free sign-up and access to millions of potential customers.
Additionally, BevMo, a retail chain recently acquired by GoPuff, focuses on selling alcohol at low prices across its stores and online platforms. BevMo offers a wide range of alcoholic beverages, from hard kombuchas to cocktail syrups.
Provi is another online marketplace that caters specifically to the B2B segment, connecting brands and distributors with trade buyers from bars, restaurants, and retail. Provi streamlines the ordering process, making it efficient and straightforward for businesses to find and order products from various distributors.
These online marketplaces have revolutionized the alcohol purchasing experience in the US, providing consumers with convenient access to a diverse range of alcoholic beverages and contributing to the growth of the e-commerce market in this sector.
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Frequently asked questions
The main channels used by people in the US to purchase alcohol are brick-and-mortar stores, online marketplaces, and third-party apps. In 2024, the United States was the leading market for alcoholic beverage e-commerce worldwide, with global revenues expected to reach an estimated 67 billion US dollars by 2029.
Some popular online marketplaces for purchasing alcohol in the US include Amazon, Mercado Libre, and Vivino.com.
Yes, third-party apps are a growing channel for purchasing alcohol in the US. According to a survey conducted by DoorDash, 58% of consumers reported using a third-party app to order alcohol in the past six months, and 40% ordered alcohol delivery more in 2024 than in 2023.
