E-COMMERCE ALCOHOL SALES SET TO SURPASS $36 BILLION BY 2028

The online alcohol market is set to grow significantly, with sales projected to surpass US$36 billion by 2028. This growth is driven by increasing demand for whisky and agave-based spirits, according to a new report from IWSR Drinks Market Analysis.

Growth in Online Alcohol Sales

IWSR’s Ecommerce Strategic Study predicts a 20% rise in alcohol e-commerce sales across 18 key markets over the next five years, adding an estimated US$6 billion to the industry.

Previous IWSR forecasts suggested that online alcohol sales in 16 markets would reach US$40 billion by 2027. The latest report, which now includes Hong Kong and Singapore, shows a more stable growth pattern post-pandemic.

Key Markets Driving Sales

The study covers e-commerce trends in 18 major markets: Australia, Brazil, Canada, China, Colombia, France, Germany, Hong Kong, Italy, Japan, Mexico, the Netherlands, Nigeria, Singapore, South Africa, Spain, the UK, and the US.

Guy Wolfe, head of e-commerce insights at IWSR, stated: “Global e-commerce trends are stabilising after years of fluctuation. Alcohol e-commerce is now a key influence on consumer purchasing behaviours across multiple channels.”

Spirits Lead the Way

Whisky and agave spirits are expected to drive the most growth in the online alcohol market, while wine and beer continue steady expansion.

China and the US are projected to contribute the most to this growth. China alone could add US$1.9 billion in value by 2028, fueled by social media platforms like Douyin (China’s TikTok), which blend entertainment and shopping.

The US is also seeing more consumers buying alcohol online, with an increase of four percentage points in online alcohol shoppers, according to an IWSR consumer survey from Q3 2024. Premium American whiskey, including Bourbon, rye, and single malts, is set to play a major role in this expansion.

Regional Trends in E-commerce

China and the US will be the biggest drivers of growth, but other markets such as Australia, Japan, and Mexico are also expected to see strong increases.

Meanwhile, countries with less-developed alcohol e-commerce markets are seeing sales return to pre-pandemic levels. In the UK, online alcohol sales are forecast to decline before picking up again in 2026.

Italy is expected to see the fastest growth from a lower starting point, with supermarkets investing heavily in online grocery shopping. The number of online alcohol shoppers in Italy increased by approximately 500,000 last year alone.

The Importance of a Digital Presence

IWSR stresses that a strong digital presence is crucial for brands to remain competitive. Many consumers research products online before making a purchase, whether in-store or online.

Wolfe added: “Brands need to develop strong online strategies and continuously improve their digital content to keep customers engaged and drive sales.”

As digital platforms continue to shape consumer behaviour, the coming years will be key for alcohol brands aiming to harness e-commerce for long-term growth.