The COVID-19 pandemic led to a seismic shift in U.S. alcohol purchasing habits, propelling e-commerce sales to unprecedented heights. The value of alcohol e-commerce surged from $85 million in 2018 to $977 million in 2023.
Today, the landscape of alcohol e-commerce continues to evolve rapidly. Uber made a significant play by acquiring Drizly for $1 billion, leveraging its vast user base for alcohol delivery, only to later discontinue the service. In another strategic move, ReserveBar, a premium spirits shipping platform, expanded its reach by acquiring Minibar Delivery, thus diversifying its offerings to include everyday alcohol products.
Amidst all of this rapid evolution, Park Street University compiled the best insights and analysis from our archives to provide a comprehensive review of the sector’s standing and offer strategic insights for suppliers navigating this evolving digital marketplace.
Key Findings and Highlights
- E-commerce has evolved to include several innovative models, such as online retailers and marketplaces, direct-to-consumer (DTC) sales, subscription services, and on-demand delivery.
- IWSR forecasts that the E-commerce channel growth rate will outperform the overall US alcoholic beverage market, with a 7% compound annual growth rate between 2023-2027.
- The costs most often associated with E-commerce are: E-commerce provider fees, the cost of packaging and shipping the product, the cost of processing the order via credit card, as well as your digital marketing and sales expenses.
- The most significant aspects of a modern digital marketing strategy include a website, social media, email marketing, SMS marketing, and high-quality imagery of your product.