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

Australia Alcoholic Beverages Market Overview

The Australia alcoholic beverages market growth is underpinned by a sizeable population and a culturally ingrained focus on social consumption, sustaining consistently high demand. The burgeoning craft beverage sector offers significant growth opportunities for local producers seeking to capitalise on premiumisation and product innovation. Notably, the July 2024 launch of G Flip’s BOX brand, featuring vegan-friendly, low-gluten, 4.5% ABV options, targets health-conscious consumers, reflecting evolving preferences and niche market expansion.

Wine tourism plays a critical role in driving regional economic development through enhanced cellar door sales and hospitality revenue streams. Australia’s multicultural population, spanning over 200 birthplaces and languages, fuels demand for a diverse alcoholic beverage portfolio tailored to varied consumer tastes. This demographic diversity, combined with strong domestic consumption and export capabilities, positions the sector for sustained domestic growth and international market scalability.

Australia Alcoholic Beverages Market Growth

Supportive regulatory frameworks in Australia foster innovation within the alcoholic beverage sector, enabling product diversification and new market entries. The Australia alcoholic beverages industry significantly contributes to employment across manufacturing, logistics, and hospitality sectors. In July 2022, FELLR expanded its portfolio with FELLR FREE, a non-alcoholic, all-natural, sugar-free, gluten-free option targeting health-conscious consumers, demonstrating market responsiveness to wellness trends and growing demand for low-calorie alternatives.

The growth of online alcohol sales has optimized distribution efficiency, expanding consumer reach and facilitating market penetration across diverse demographics. Increasing consumer preference for locally sourced ingredients is driving product differentiation and enhancing perceived value. Alcoholic beverages maintain a vital role in Australia’s hospitality sector and on-premises consumption, underpinning strong growth potential for producers and retailers amid shifting lifestyle behaviours and evolving consumer preferences.

Key Trends and Developments

The Australia alcoholic beverages market growth is driven by a strong focus on health and wellness, expanding digital and e-commerce channels, rising demand for premium and craft products, and increased emphasis on sustainability and local sourcing.

December 2024

The Coca-Cola Company revealed plans to acquire the Australian alcohol RTD brand Billson’s, aiming to grow its alcoholic drinks portfolio. Billson’s owners kept their Beechworth hospitality business and non-alcoholic range.

October 2024

Treasury Wine Estates launched a new premium wine range called Drop of Sunshine in partnership with Hello Sunshine, a women-centric media company founded by Reese Witherspoon. The range featured approachable, sustainable wines aimed at celebrating women’s stories and fostering connection through vibrant, female-led collaboration.

September 2024

Carlton & United Breweries, under Asahi Beverages, relaunched Sub Zero as Australia’s first zero sugar cola and vodka premix, 30 years after its original debut. Targeting Gen Z and nostalgic fans, the 4.5% ABV RTD offered a sugar-free, fizzy twist. It was rolled out nationwide in liquor stores, pubs, and clubs.

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.

Health and Wellness Focus is Driving the Demand of the Australia Alcoholic Beverages Market

The Australian alcoholic beverages market is witnessing a growing demand for low-alcohol, non-alcoholic, and health-conscious product variants. Consumers increasingly seek options like sugar-free, gluten-free, and low-calorie drinks, driving innovation and portfolio diversification. This trend presents lucrative opportunities for brands to capture the expanding health-oriented segment and align with evolving consumer lifestyle preferences.

Digital and E-commerce Expansion is Impacting the Australia Alcoholic Beverages Industry Revenue

The rapid growth of online alcohol retailing has transformed distribution strategies, enabling wider consumer access and convenience. Digital platforms enhance market penetration across demographics and regions, facilitating personalised marketing and data-driven consumer insights. This trend supports increased sales volumes and fosters direct-to-consumer relationships, creating competitive advantages for producers and retailers within the evolving market landscape.

Premiumisation and Craft Growth are Driving the Australia Alcoholic Beverages Market Expansion

Premium and craft alcoholic beverages continue to drive market expansion as consumers prioritise quality, authenticity, and unique flavours. The rising popularity of craft spirits, boutique wines, and artisanal beers reflects demand for differentiated, locally produced offerings. This premiumisation trend enables brands to command higher price points and strengthen brand loyalty amid intensifying competition.

Sustainability and Local Sourcing is a Key Trend in the Australia Alcoholic Beverages Market

Sustainability considerations and a focus on locally sourced ingredients increasingly influence consumer purchasing decisions. Producers adopting environmentally friendly practices and transparent supply chains enhance product appeal and perceived value. This trend supports brand differentiation and meets growing consumer expectations for responsible production, contributing to long-term market resilience and reputation.

Australia Alcoholic Beverages Market Trends

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 diverse offerings of RTDs cater to consumers seeking convenient and appealing beverage solutions, thereby emerging as a prominent component of modern social settings. In October 2023, Australian Vintage introduced Tempus One, a new range of Prosecco-based sparkling wine spritzers tailored to the preferences of Gen Z and Millennial consumers.

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, 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.

Market Restraints

The Australia alcoholic beverages market faces several challenges, 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. Reflecting these concerns, in 2022, there were 1,742 alcohol-induced deaths in Australia (1,245 males and 497 females), primarily due to conditions such as liver cirrhosis and alcohol poisoning. This marked an increase from 2021, with the most notable rise observed among females aged 45–64 years (55 more deaths) and males aged 65–84 years (47 more deaths).

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 report, beer continues to be the most popular alcoholic drink in Australia, largely due to its variety and affordability. Its versatility enhances its appeal across a wide range of consumption occasions, particularly in social and casual settings, reinforcing its strong market position. 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.  In a significant development within the craft beer industry, Stone & Wood has revealed a three-year collaboration with the World Surf League (WSL), establishing itself as the official beer of WSL Australia for the period from 2025 to 2027.

The Australia alcoholic beverages market is also experiencing growth in the spirits sector, with whisky, gin, and vodka becoming increasingly popular. Spirits are increasingly chosen for their bold taste profiles and versatility in mixology, supporting their growing appeal in both classic and contemporary cocktails. A wide range of variants caters to diverse preferences, blending heritage with innovation. 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. Strategically, Australian spirits wholesaler Paramount Liquor partnered with B2B digital platform EzTenda in October 2024 to integrate its consumer portal, streamlining operations and enhancing its digital capabilities within the evolving spirits distribution landscape.

Market Analysis by Distribution Channel

The on-trade segment in the Australia alcoholic beverages market is driving premiumisation by fostering experiential consumption in licensed venues such as bars, pubs, and restaurants. This channel supported brand differentiation and consumer engagement through innovative offerings like craft beers and cocktails. Recent venue launches, including Barry Parade Public House (Brisbane) and Tilda & Bar Tilda (Sydney), demonstrated market activation and local enterprise growth, reinforcing the segment’s strategic importance in enhancing customer experience and supporting premium product penetration.

The off-trade segment remained a critical revenue contributor, underpinned by extensive supermarket and liquor chain retail penetration. Consumer preferences for convenience, value packaging, and promotional deals sustained volume growth in wines and spirits. The accelerated adoption of digital retail channels reshaped purchasing behaviours, enabling suppliers to access broad, cost-efficient markets. This trend provided scalable distribution opportunities and reinforced the segment’s role as a key driver of sustained market expansion and profitability.

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 demographic diversity and well-established hospitality infrastructure act as key demand drivers, supporting sustained market expansion and product 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.

Victoria Alcoholic Beverages Market Drivers

Victoria’s alcoholic beverages market benefited from strong consumer demand driven by its vibrant hospitality sector and wine tourism. The state’s robust infrastructure and supportive government initiatives fostered innovation and premium product development, positioning Victoria as a key growth hub within Australia’s evolving alcohol market.

Australian Capital Territory Alcoholic Beverages Market Opportunities

The Australian Capital Territory capitalised on its affluent population and growing demand for premium and craft alcoholic beverages. Its proximity to government bodies and business hubs encouraged investment in niche markets, while increasing on-premises consumption and digital sales channels supported sustained market expansion in the region.

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.