Autonomous Industry Presents Liquor Business With Significant Growth Opportunities
Latest reports from Morgan Stanley states that, shared and autonomous vehicles will add close to 80 basis points towards annual alcoholic beverage sales growth for the next 10 years. According to the report, Self-driving car “technology could help address the mutual exclusivity of drinking and driving in a way that can significantly enhance the growth rate of the alcohol market and on-trade sales at restaurants.”
“Shared and autonomous vehicles could expand the total addressable market of alcoholic beverages while reducing the incidence of traffic fatalities and accidents,” writes analyst Adam Jonas.
More opportunities to drink before getting in the car. [And] more opportunities to drink while in the car!
Alcohol related deaths accounted for 29 percent of U.S. traffic fatalities in 2015, which according to the CDC; cost the economy more than $44 billion. Self-driving cars and autonomous vehicles can free up drinkers to consume one incremental alcoholic beverage per week on average. This adds up to 80 basis points of annual revenue growth to the industry’s sales for the next 10 years. Also duly to be noted that, the current global market size for alcoholic beverages stands at $1.5 trillion.