The E-commerce Alcohol Sales Story: A Tale of Resilience and Growth
The world of online alcohol sales has been on a wild ride, but the latest data suggests a turning point. After a period of decline, the e-commerce channel is showing signs of resilience, with a promising outlook for the future.
In 2024, e-commerce sales of beverage alcohol took a hit, marking the third consecutive year of decline. However, this trend is not expected to last. The IWSR's Ecommerce Strategic Study 2025 reveals a brighter picture, predicting a return to growth in the coming years.
The study, covering a vast 85% of global e-commerce value, highlights a smaller decline in 2024, with a 1% drop. This is largely attributed to the US and China, where macroeconomic challenges and uncertainty led to lower alcohol sales. These regions' struggles were the main culprits behind the channel's underperformance.
Despite these setbacks, e-commerce maintained its share of the total beverage alcohol market at 3.5%, a stable figure. IWSR forecasts indicate that this share will remain in 2025 before experiencing growth, reaching 3.8% by 2029. This stability follows a turbulent period for online alcohol sales.
From the boom during the Covid-19 pandemic (a 35% value CAGR from 2019-2021) to a correction in 2022-2023 (-5% CAGR), the channel has now entered a phase of modest growth. IWSR predicts a healthy 3% CAGR for the 2024-2029 period.
Guy Wolfe, head of e-commerce insights, explains, "E-commerce alcohol sales have stabilized after a two-year correction as channel dynamics normalized post-pandemic. We anticipate a return to modest growth over the forecast period."
The study's consumer research reveals interesting trends. While online usage dipped in 2025, it did so to a lesser extent than physical off-trade, indicating the digital channel's resilience. The frequency of use remains stable in most markets, except China, where it varies. However, volume and total basket spend still favor e-commerce over offline shopping.
As a result, e-commerce is expected to outperform the market, gaining modest share in the total alcohol and off-trade sectors in the coming years.
The key to this growth lies in established markets. China, Brazil, and the US are projected to drive over half of the total online alcohol value growth between 2024 and 2029. This reflects positive consumer attitudes towards e-commerce adoption in these markets, where online sales are already well-established.