The alcoholic beverage market is the largest and fastest growing industry in the United States. The alcoholic beverage industry is very stable as it is not affected significantly by inflation as most other industries are. According to Allied Market Research in their 2023 analysis of the global Alcoholic Beverages Market, the “...alcoholic beverages market size is projected to reach $2036.6 billion by 2031, growing at a CAGR of 2.2% from 2022 to 2031.”(Allied Marketing Research, 2023) Due to the stability and growth of the industry, investment in the alcoholic beverage market is low risk. 

The alcoholic beverage industry is unique as it is closely regulated by the government with many states having their own sets of regulations that companies and consumers must abide by. Furthermore, price elasticity is high in this market as people of all income levels demand products from this industry even during times of economic turmoil. When looking at the demographics of consumers in this market, men and women consume alcoholic beverages at a nearly identical percentage and higher education is positively correlated to greater alcohol consumption. (PennState, 2023) 

Even though the alcoholic beverage industry is stable, the products that consumers demand change slightly every few years. For example, domestic “...beer was once the country’s favorite alcoholic beverage, (but) today its market share has shrunk to 42 percent.” (Statista,2023) As the demand for domestic beer has decreased, demand for craft beers and spirits have increased. Another trend in the alcoholic beverage industry is the growing demand for ready to drink cocktails and modernization of the wine industry to appeal to Millennials and Generation Z. 

The demand for craft beverages have been growing steadily in the Hudson Valley for the past decade. The Hudson Valley has had a history of flourishing orchards, vineyards and grain fields since the 1900s. However, the Hudson Valley has only been able to become a hotspot for innovation in this industry recently due to a variety of factors. Demand for craft beverages in the Hudson Valley has increased tremendously due to new regulation that has lowered licensing fees for small companies. Additionally, the Hudson Valley has been able to flourish in the alcoholic beverage industry due to the abundance of raw materials and the close proximity to New York City. According to Hudson Valley Magazine “...craft beer tourism alone brings in an estimated $525 million to New York State-and a good portion of that is spent visiting breweries and purchasing beer in the Hudson Valley.” (Buff, 2017)

The Hudson Valley Venture Hub is working with many companies in the alcoholic beverage industry as they scale up. To name a few: 

• Uncouth Vermouth is crafting refined vermouth and is looking to fundraise to take advantage of the increased demand for spirits in the industry.
• Kingston Standard is creating craft beers to meet demand in the Hudson Valley.
• Cocktail Architect is putting their unique spin on premium syrups and cocktail making
• Accordion Wines is fermenting grapes in the Hudson Valley to create clean wines.

References 

Buff, S. (2017, July 13). What's caused The Craft Beverage Industry to Boom? Hudson Valley. https://hvmag.com/food/whats-caused-the-craft-beverage-industry-to-boom/ (n.d.). Alcoholic Beverage Consumption Statistics and Trends 2023. Penn State Extension. https://extension.psu.edu/alcoholic-beverage-consumption-statistics-and-trends-2023 (n.d.). Alcoholic beverages industry in the U.S. - Statistics & Facts. Statista. https://www.statista.com/topics/8803/alcoholic-beverages-industry-in-the-united-states/#t opicOverview 

(n.d.). Alcoholic Beverages Market. Allied Market Research. 

https://www.alliedmarketresearch.com/alcoholic-beverages-market 

(n.d.). Alcohol Trends 2023: Key Factors Shaping the Industry this year. Overproof. https://overproof.com/2022/11/10/alcohol-trends-2023/ 

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Madison Engler is currently an MBA candidate concentrating in Healthcare Management at the State University of New York at New Paltz. Madison graduated in Spring 2023 with a Bachelors of Science in Marketing from the State University of New York at New Paltz. After graduation in Spring 2024, Madison plans to work in consumer packaged goods in the food and beverage industry.