The alcoholic beverages industry never had much of a heyday on digital purchasing channels, partially because of the various legal regulations restricting the sale and delivery of alcohol online. However, things drastically changed with the outbreak of the coronavirus pandemic. While the e-commerce share of beer, wine, and spirits (BWS) sales was less than one percent before the pandemic in the U.S., it neared the three percent mark by 2022. Even though brick-and-mortar sales continue to overshadow the online channel, the alcohol e-commerce market is forecast to continue its steady growth, with global revenues reaching an estimated 67 billion U.S. dollars by 2028.
In terms of leading distribution channels for alcoholic beverages, approximately a third of global shoppers reported using online marketplaces such as Amazon and Mercado Libre for product search and pre-purchase browsing in 2023, beating the traditional brick-and-mortar channel that was preferred by just over a fifth of respondents.
In the wine e-commerce market, Naked Wines reigns supreme, with the UK-based company boasting 354 million British pounds in global revenues in 2023. Naked Wines plc is an online-only wine retailer headquartered in Norwich, United Kingdom, that also operates in the United States and Australia.
Another prominent player in the alcohol e-commerce market is U.S.-based Drizly. Founded in 2012, Drizly is an on-demand alcohol delivery platform that witnessed impressive growth in recent years, with its gross merchandise volume (GMV) increasing from a mere 45 million U.S. dollars in 2016 to more than 1.4 billion dollars in 2022. Drizly was acquired by Uber Technologies for 1.1 billion dollars in February 2021.
Coming down from the pandemic high
In 2023, the United States was the leading market for alcoholic beverages e-commerce worldwide. Japan, the UK, China, and South Korea rounded up the top five. That year, growth in U.S. alcohol e-commerce sales was estimated at 6.1 percent, a figure that pales in comparison to the meteoric growth of 146 percent experienced in 2020. This indicates that the market for alcohol online is stabilizing post-pandemic.In terms of leading distribution channels for alcoholic beverages, approximately a third of global shoppers reported using online marketplaces such as Amazon and Mercado Libre for product search and pre-purchase browsing in 2023, beating the traditional brick-and-mortar channel that was preferred by just over a fifth of respondents.
Established players versus newcomers: who dominates the alcohol e-commerce market?
In 2022, Australia’s Dan Murphy’s was the leading wine and liquor online store globally, garnering an estimated 462 million U.S. dollars in e-commerce net sales. Two of the biggest alcohol e-commerce players in Australia, Dan Murphy’s and BWS, are both owned by Endeavour Group, a well-established alcoholic beverages retailer.In the wine e-commerce market, Naked Wines reigns supreme, with the UK-based company boasting 354 million British pounds in global revenues in 2023. Naked Wines plc is an online-only wine retailer headquartered in Norwich, United Kingdom, that also operates in the United States and Australia.
Another prominent player in the alcohol e-commerce market is U.S.-based Drizly. Founded in 2012, Drizly is an on-demand alcohol delivery platform that witnessed impressive growth in recent years, with its gross merchandise volume (GMV) increasing from a mere 45 million U.S. dollars in 2016 to more than 1.4 billion dollars in 2022. Drizly was acquired by Uber Technologies for 1.1 billion dollars in February 2021.
