Australia Alcoholic Beverages Market Growth Analysis - Forecast Trends, Market Size, Share and Outlook (2025-2034)

Australia Alcoholic Beverages Market Trends

The growth of the Australia alcoholic beverages market is being driven by the country’s sizeable population and its cultural focus on social events, which contribute to consistently high alcohol consumption. The expanding craft beverage industry presents promising opportunities for local producers, while the wide variety of alcoholic options appeals to a broad spectrum of consumer tastes, including those seeking premium and luxury offerings. In July 2024, popular Australian musician G Flip entered the market with the launch of BOX, an alcoholic juice brand. Featuring two vegan-friendly, low-gluten flavours with an ABV of 4.5%, the brand targeted health-conscious drinkers and was initially rolled out in selected venues across Australia, with hints of further flavour releases and wider availability in the future.

Australia’s global reputation for producing premium-quality wines offers substantial export potential within the Australia alcoholic beverages market. Wine tourism contributes positively to regional economies, while the nation’s multicultural population fosters demand for a diverse range of alcoholic products. The market enjoys robust domestic consumption alongside growing opportunities for international expansion.

Australia Alcoholic Beverages Market Growth

Australia’s favourable climate continues to strengthen its position as a leading wine exporter, contributing to the rising demand for the Australia alcoholic beverages market. Supportive regulations encourage innovation in alcohol production, while the sector generates significant employment opportunities across manufacturing, logistics, and hospitality. Alcoholic drinks also hold a strong cultural presence in Australian life. In July 2022, the nation’s most awarded seltzer brand, FELLR, introduced FELLR FREE—a non-alcoholic, all-natural, sugar-free, and gluten-free range. Targeted at health-conscious consumers, the drinks featured two flavours and contained only 10 calories per can.

Consumer preferences are increasingly shifting towards low-alcohol and alcohol-free options, influencing the Australia alcoholic beverages market dynamics and trends. The growth of online alcohol sales has improved convenience and accessibility. Additionally, the focus on locally sourced ingredients continues to elevate product quality. Alcoholic beverages remain central to Australia’s culture of socialising, dining, and entertainment, helping to sustain and grow the hospitality sector.

Australia Alcoholic Beverages Market Insights

• The increase in alcohol consumption, with 69% of Australians aged 14 and over drinking alcohol in the past year, as per the 2022-2023 NDSHS, indicates growing demand in the market. This rising trend supports the expansion of beverage offerings and growth opportunities for brands targeting diverse consumer preferences in Australia.
• In 2022-23, 213.5 million litres of pure alcohol were available for consumption in Australia, an increase from 208.6 million litres in 2019-20, according to the ABS. This rise in alcohol availability reflects greater consumer demand and market growth, with producers potentially benefiting from higher production and distribution opportunities in the sector.
• With 18.5% of adults consuming over 10 standard drinks in 2022, as per the ABS, the prevalence of high-volume drinking highlights demand for premium and higher-alcohol-content beverages. Brands targeting these consumers can tap into this segment with products designed for higher alcohol preferences, such as craft spirits and premium wines.

Australia Alcoholic Beverages Market Drivers

Premiumisation

The growth of the Australia alcoholic beverages market is being driven by consumers increasingly favouring quality over quantity, opting for premium, lower-alcohol, and health-conscious options. This shift mirrors a global trend where consumers are willing to pay more for superior taste and sustainability, resulting in a decrease in demand for cheaper alcoholic drinks. In October 2024, Treasury Wine Estates introduced Drop of Sunshine, a premium wine range created in partnership with Reese Witherspoon’s media company, Hello Sunshine. The women-focused range was unveiled at the Shine Away event, featuring versatile wines with sustainable packaging.

Growth of Ready-to-Drink (RTD) Beverages

Ready-to-drink (RTD) beverages are experiencing rapid growth in the Australia alcoholic beverages market, particularly in on-premises locations such as bars and nightclubs. The convenience and variety of RTDs appeal to consumers looking for quick, enjoyable drinking experiences. This trend is reshaping the beverage scene, with RTDs becoming a key feature in social environments. In October 2023, Australian Vintage introduced Tempus One, a range of sparkling Prosecco-based wine spritzers designed for Gen Z and Millennials. Available in three flavours, the RTD drink launched on the East Coast, providing a light, refreshing option for summer.

Opportunities in the Australia Alcoholic Beverages Market

Sustainability has emerged as a major trend in the Australia alcoholic beverages market. In response to growing consumer demand for environmentally responsible products, brands are increasingly adopting eco-friendly packaging options, including recyclable glass bottles, aluminium cans, and biodegradable labels. This shift forms part of a wider effort to cut carbon emissions and support ethical sourcing practices. In June 2022, Lion introduced XXXX Zero in Queensland Australia’s first carbon-neutral, alcohol-free beer. Designed for environmentally conscious consumers, the vegan-friendly beer aligns with Lion’s broader sustainability objectives, which include transitioning to renewable energy by 2025 and achieving a net-zero value chain by 2050.

Market Restraints

The Australia alcoholic beverages market faces several restraints, including stringent regulations on sales, high taxes, and economic downturns affecting consumer spending. Increasing health consciousness and anti-alcohol campaigns, alongside growing competition from non-alcoholic alternatives, limit consumption, especially among younger audiences.

Social responsibility concerns, supply chain disruptions, and changing consumer preferences also challenge the industry. Additionally, environmental issues are prompting both consumers and companies to adopt sustainable practices, further influencing market dynamics and increasing pressure on producers.

Australia Alcoholic Beverages Market Share

Market Analysis by Product Type

According to the Australia alcoholic beverages market analysis, beer continues to be the most popular alcoholic drink in Australia, largely due to its variety and affordability. Its versatility makes it perfect for social events and casual drinking. The craft beer sector is flourishing, with over 120 breweries in Western Australia alone, contributing to 20% of the nation’s craft beer output. In August 2024, Western Australia introduced a ten-year strategy to support the growth of craft beer, fostering further development in the region’s thriving industry.

The Australia alcoholic beverages market is also experiencing growth in the spirits sector, with whisky, gin, and vodka becoming increasingly popular. Spirits are favoured for their higher alcohol content, making them ideal for cocktails and premium drinking experiences. The market offers an extensive variety of flavours, appealing to both traditional and modern palates. This rise in popularity reflects the increasing consumer preference for quality spirits. In October 2024, Neurita Tequila was launched in Australia through Coles Liquor, available at Liquorland and First Choice stores. The brand, founded by Lucy Smith, caters to the growing demand for elegant, flavourful tequila, especially in margaritas.

Market Analysis by Distribution Channel

According to the Australia alcoholic beverage market report, on-trade refers to drinks consumed at licensed venues such as bars, pubs, and restaurants. It provides a social setting for enjoying premium drinks like cocktails and craft beers, while supporting local businesses. On-trade also offers brands direct consumer engagement through unique experiences. New bars in Australia this summer, including Barry Parade Public House in Brisbane, Frog's Hollow Saloon, Tilda & Bar Tilda in Sydney, Earth Angels in Victoria, and Westside Laundry in Tasmania, offer innovative cocktails and inviting atmospheres.

Off-trade refers to alcohol purchased for home consumption from retail outlets such as liquor stores and supermarkets, contributing to the Australian alcoholic beverage market's revenue. It offers convenience, a broad selection, and competitive pricing. Off-trade allows consumers to purchase a wide range of alcoholic beverages, like wines and spirits, for personal use, along with promotions and bulk-buy options. The India-Australia Free Trade Agreement (FTA), ratified in November 2022, facilitated easier access for Australian wines to India and provided Indian wine and liquor industries with Australian expertise and investment. The FTA aimed to address export restrictions, promoting trade and collaboration.

Australia Alcoholic Beverages Market Regional Insights

New South Wales Alcoholic Beverages Market Overview

New South Wales (NSW) is Australia's largest alcoholic beverages market, with high demand across wine, beer, and spirits. The state's diverse population and vibrant hospitality scene drive consistent growth and innovation. Coastal Drink Co, based in Northern Rivers, launched Australia's first alcoholic coconut water in April 2024, offering vegan, gluten-free pineapple and watermelon flavours, and expanded to 40 venues with plans for wider distribution.

Queensland Alcoholic Beverages Market Trends

Queensland is experiencing strong growth in craft beers, spirits, and premium wines. Consumer demand for local and sustainable products is on the rise, alongside an increasing preference for low-alcohol and non-alcoholic alternatives. Queensland’s iconic XXXX brewery launched its first alcoholic ginger beer in March 2025, featuring a 3.5% ABV. Crafted with real ginger juice, the drink targeted younger Australians seeking flavourful, lower-alcohol alternatives amid rising health-conscious trends.

Western Australia Alcoholic Beverages Market Dynamics

Western Australia is renowned for its wine production, particularly in regions like Margaret River. The market benefits from strong domestic and international exports, with growing interest in premium wines and craft beverages. From 2026, Western Australians can buy alcohol without a meal on Good Friday and Christmas Day, as liquor law reforms extend trading hours, simplify regulations, and support hospitality sector growth statewide.

Competitive Landscape

The Australia alcoholic beverages market key players operate on a global scale, placing a strong emphasis on premium-quality products. These companies are deeply committed to innovation and sustainability, consistently adapting to consumer trends. They maintain a robust presence across both established and emerging markets, with sustainability remaining a central focus of their operations and brand strategies. By prioritising high-end offerings and environmentally responsible practices, these firms continue to shape the industry and drive growth in Australia and beyond.

Key Industry Players

Bacardi & Company Limited: Bacardi & Company Limited, headquartered in Hamilton, Bermuda, was established in 1862. It is renowned for its rum and diverse portfolio of spirits, including brands like Grey Goose and Dewar’s. The company operates globally, focusing on premium drinks, with a strong commitment to innovation and sustainability.

Diageo Plc: Diageo Plc, based in London, United Kingdom, was founded in 1997. It is a global leader in alcoholic beverages, owning famous brands like Johnnie Walker, Guinness, and Tanqueray. Diageo focuses on premium products and has a strong presence in both developed and emerging markets worldwide, prioritising sustainability.

Constellation Brands, Inc.: Constellation Brands, Inc., headquartered in New York, United States, was established in 1945. It is a leading producer of beer, wine, and spirits, owning popular brands like Corona, Modelo, and Robert Mondavi. The company is known for its focus on innovation, premium products, and expansion into the cannabis sector.

Heineken Holding N.V.: Heineken Holding N.V., based in Netherlands, Europe, was founded in 1864. It is one of the largest global brewers, best known for its flagship Heineken beer, along with a range of other beer and cider brands. The company is committed to sustainability and maintaining its leadership in the global beer market.

Other key players in the Australia alcoholic beverages industry are Anheuser-Busch InBev SA/NV, Brown-Forman Corporation, Molson Coors Beverage Company, Pernod Ricard S.A., Grupo Corona, and Vok Beverages Pty Ltd, among others.

Recent Developments

June 2024

Matso’s, Australia’s most remote brewery, launched its Vodka Lemon Lime Crush RTD. The citrus drink, crafted with Australian limes and lemons, quickly exceeded sales targets and aimed to attract more female drinkers. It marked the brewery’s expansion into spirits and RTDs following its second venue opening.