The Alcohol Gummies market is projected to be worth USD 6.5Mn by 2030, registering a CAGR of 5.4% during the forecast period (2022–2030).
Alcohol Gummies are usually dipped in various alcohol such as vodka, whiskey, tequila, rum, and gin. The gummies are available in several flavors and are designed to be devoured as a party game or a means to get wasted.
The growing demand among consumers for alcoholic gummies has compelled manufacturers to adopt various strategies to come up with the best products to serve consumers. For instance, in October 2018, Smith & Sinclair, a recognized food and beverage disruptor, received a multi-million dollar investment to further its cutting-edge research and market expansion abroad. The London-based firm that created the first alcoholic cocktail gummies in the world, enabling customers to drink alcohol differently, has also received an investment of USD 26 million from the American investment fund disruptive capital.
The growing consumption of alcohol gummies, owing to their various benefits, such as relieving consumers from pressure, anxiety, and many more, is set to boost its market growth. According to IRI/BDS Analytics, edibles (food, candies, gummies, and beverages) generated USD 5.7 billion in additional revenue by 2024, making them the fastest-growing category of CBD-containing consumer items sold in major retail outlets. From USD 3 billion in 2019 to USD 18 billion in 2024, the overall mainstream CBD market—which includes edibles and other goods like topicals and pet care items is anticipated to rise. According to IRI, sales of foods and beverages containing CBD increased by 39% during the early stages of the pandemic (from April 14 to June 14). According to BDS Analytics, edible sales in dispensaries reached $420 million from January through June 2020, or 15% of overall sales.In the first quarter of 2020, candy made up to than half of the edible product sales in dispensaries. Other top-selling edible product categories included chocolate, baked goods, other infused foods, tablets, and beverages.
COVID-19 Impact on the Alcohol Gummies Market
The instantaneous spread of COVID-19 has caused considerable disturbance to a wide range of industries across the globe. The pandemic has severely increased the demand for alcohol gummies due to the sudden shutdown of factories, offices, and many others, leading to unemployment, anxiety, and pressure, which in turn has increased the demand for alcohol gummies for mood relaxation. For instance, according to a recent study, between 2015 and 2018, the usage of cannabis and alcohol substances among seniors grew in the US. This is concerning because elderly persons experience the most severe side effects and greatest fatality rates from COVID-19 infection. Weak or unsubstantiated claims about cannabis and alcohol use preventing COVID-19 on the internet may promote its use. The pandemic is intensifying consumer pressure to sell cannabidiol (CBD)-containing foods, drinks, vitamins, and pet treats that are made from legal cannabis as well as alcohol. According to market activity, it will have been worth the wait for marketers of edibles, especially if and when the U.S. Food and Drug Administration (FDA) adopts CBD regulations. However, as the cases have reduced, the demand for alcohol gummies is expected to be moderate.
The growing innovations by the major players in the alcohol gummies market are set to fuel its market growth. For instance, in August 2021, Smith & Sinclair created alcoholic cocktail gummies using actual, premium spirits and blended them with fresh fruit, herbs, and syrups to mimic a classic cocktail before coating them in garnish-infused sweets. There are now 9 different gummy boxes available in Hong Kong that were created so that adults might consume their preferred alcoholic beverages: Tequila Time, London Edit, Whiskey Club, The Party, The Night In, The Love Box, Summer Lovin', Let's Celebrate, and Gin Obsessed. Furthermore, in July 2022, Texas-based Restart CBD introduced mood-altering candies and a shot positioned as an alcohol substitute for outings with friends. The business seeks to remove the stigma associated with hemp-based products in Texas and pave the way for their acceptance by the general public. The chemical delta-9 tetrahydrocannabinol (delta-9 THC) powers the Rosé Wine Sour Bears and Mango Power Shot to offer "an elevating and inspiring experience with a soothing bodily sensation. The psychoactive substance present in cannabis, known more commonly as THC, is also known as delta-9 THC. Texas does not allow the use of marijuana, but the product complies with local laws because it only contains 0.3% or less of the psychoactive substance.
The side effects associated with the excessive consumption of alcohol gummies may limit its market growth. For instance, alcohol gummies contain a lot of sugar, so if consumed in larger amounts can lead to digestive problems, hair loss, nerve damage, nausea, bloating diarrhea, and fatigue.
The hectic growing schedule of the working population, which is usually in a state of anxiety and depression, has increased the demand for alcohol gummies, boosting its market growth. For Instance, in 2020, despite a downward trend in fertility rates, India has around 900 million individuals (15–64 years old) in the working age group, which is predicted to grow by another 100 million by 2030. Furthermore, according to the U.S. Department of Labor, 21.0 million employed 16 to 24-year-olds as of July 2022. The number of employed young people increased by 2.1 million (11.4%) between April and July. In July 2022, the employment-population ratio for youth, the percentage of the civilian noninstitutional population aged 16 to 24 who had a job, was 55.3 percent, up 0.9 percentage points from the previous year. The ratio for July 2022 was, however, lower than the July 2019 ratio of 56.2%.
The high R&D cost of manufacturing alcohol gummies is still a major challenge. Additionally, the high cost of raw materials is challenging the market expansion.
The presence of key payers in the North America region providing alcohol gummies with various flavors is set to drive its market growth. For instance, Smith & Sinclair strives to make being an adult "Funnier." The business creates distinctive alcoholic and confectionery-based goods to make gifting and home entertaining more enjoyable. The business also provides fresh ways to enjoy and make favorite beverages with its patent-pending products, such as Alcoholic Cocktail Gummies, Alcoholic Dippers, Cocktail F.I.Z.Z., and Edible Fragrances.
The global Alcohol Gummies market is expected to showcase healthy growth throughout the forecast period. The market represents strong numbers in terms of consumption and is expected to grow year on year. The market is moderately fragmented, with a majority presence of tier-1 players.
Some key players operating in the global Alcohol Gummies market are Smith & Sinclair, Inebriated Baker, SugarFina USA LLC, Ginsonline, Anne McGilvray & Company, Liquor Gummies, and Osito & Co.
Some of the key development include:
Report Overview:
The Alcohol Gummies market is segmented by flavor, preparation method, alcohol, distribution channel, and region in the report. In terms of insights, this report has focused on various levels of analysis such as market dynamics, value chain analysis, Porter's five forces, competitive landscape, and company profiles—all of which comprise and discuss views on the global Alcohol Gummies emerging and fast-growing segments, regions, and countries.
Objectives of the Study
Intended Audience
| Report Attribute/Metric | Details |
|---|---|
| Market Size | 2030: USD 6.5Mn |
| CAGR | 5.4% CAGR (2022-2030) |
| Base Year | 2021 |
| Forecast Period | 2022-2030 |
| Historical Data | 2020 |
| Forecast Units | Value (USD Million) |
| Report Coverage | Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Flavor, Preparation Method, Alcohol, and Distribution Channel |
| Geographies Covered | North America, Europe, Asia-Pacific, Rest of the World |
| Key Vendors | Smith & Sinclair, Inebriated Baker, SugarFina USA LLC, Ginsonline, Anne McGilvray & Company, Liquor Gummies, Osito & Co |
| Key Market Opportunities | • The growing working population |
| Key Market Drivers | • Growing Innovations By Key Players |
Alcohol Gummies Market Highlights:
Frequently Asked Questions (FAQ) :
The global Alcohol Gummies market would register a growth of 5.4%.
Growing younger generation will play a prominent role in taking the market forward.
The side effects of consuming excessive alcohol gummies may hamper the market.
North America would enjoy the upper hand in the Alcohol Gummies market.
The US, as the largest consumer, would set the trend.
Assistant Manager - Research High acumen in analyzing complex macro & micro markets with more than 6 years of work experience in the field of market research. by implementing her analytical skills in forecasting and estimation into market research reports, she has expertise in packaging, construction, and equipment domains. she handles a team size of 20-25 resources and ensures smooth running of the projects, associated marketing activities, and client servicing.
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