Global Spirits Market – Industry Trends and Forecast to 2031

Spirits Market Analysis and Size

The market is a dynamic and diverse industry experiencing steady growth, driven by several key factors. The market is characterized by a wide range of products, including whiskey, vodka, rum, gin, tequila, and brandy, each with unique characteristics and consumer appeal. One of the primary drivers of market growth is the increasing popularity of premium and super-premium spirits, driven by changing consumer preferences and a growing appreciation for high-quality and artisanal products. In addition, the rising trend of cocktail culture and mixology has fueled demand for spirits, particularly among younger consumers seeking unique and experiential drinking experiences.

The global spirits market size was valued at USD 72.22 billion in 2023 and is projected to reach USD 199.74 billion by 2031, with a CAGR of 13.56% during the forecast period of 2024 to 2031. In addition to the insights on market scenarios such as market value, growth rate, segmentation, geographical coverage, and major players, the market reports curated by the Data Bridge Market Research also include in-depth expert analysis, geographically represented company-wise production and capacity, network layouts of distributors and partners, detailed and updated price trend analysis and deficit analysis of supply chain and demand.

Report Scope and Market Segmentation       

Market Definition

"Spirits," also known as distilled spirits, liquor, or hard liquor, are alcoholic beverages produced by distillation of grains, fruits, or vegetables that have already gone through alcoholic fermentation. The distillation process increases the alcohol content of the beverage, typically to levels ranging from 20% to 60% alcohol by volume (ABV), including whiskey, vodka, rum, gin, tequila, and brandy. Spirits are often consumed in small quantities, used in cocktails and mixed drinks, and enjoyed neat or on the rocks.              

Spirits Market Dynamics

Drivers

• Premiumization

Several factors, including rising disposable incomes and a growing appreciation for high-quality products fuel the trend toward premiumization in the market. Consumers increasingly seek unique and indulgent experiences, leading them to opt for premium and super-premium spirits over standard offerings. This is particularly found in developed markets, where consumers are willing to pay a premium for products that offer superior quality, craftsmanship, and taste. This is driving the market growth.          

• Cocktail Culture 

The rise of cocktail culture and mixology has significantly impacted the market, especially among younger consumers seeking more experiential and social drinking experiences. Consumers showing a growing interest in experimenting with new and innovative drinks crafted from a variety of spirits has led to a growing demand for a wide range of spirits, including whiskey, vodka, rum, gin, and tequila, used as base spirits in cocktails.  As cocktail culture continues to evolve, the demand for spirits is expected to remain strong, driving growth in the market.

Opportunities

• Product Innovation

Continued innovation in product development is crucial for spirits brands looking to differentiate themselves in the market and attract consumers. This includes the introduction of new flavors and variants that cater to evolving consumer tastes and preferences. In addition, innovative packaging formats, such as sustainable and convenient options, can enhance the appeal of spirits to consumers. Brands that invest in unique branding strategies, such as collaborations with artists or celebrities, can also create a strong brand identity and resonate with consumers. By focusing on product innovation, spirits brands can stay ahead of competitors and maintain a strong presence, creating opportunities in the market.

• Environmentally Conscious Consumers

Embracing sustainable practices is becoming increasingly important for spirits brands looking to appeal to environmentally conscious consumers and create a positive brand image. This involves the utilization of environmentally friendly packaging materials, such as recycled or biodegradable materials, as well as the adoption of sustainable production processes aimed at reducing carbon emissions and waste. Supporting local communities and sourcing ingredients ethically can also help brands connect with consumers who prioritize sustainability. By adopting sustainable practices, spirits brands can reduce their environmental impact, differentiate themselves in the market, and attract consumers who are increasingly looking for eco-friendly products, creating new opportunities for the market.

Restraints/Challenges

• Regulatory Challenges  

Strict regulations vary widely across countries and can impact the marketing strategies and distribution channels available to spirits companies. Labeling requirements can be complex and may require companies to make costly adjustments to packaging and labeling to comply with local regulations. Limitations on the sale of alcohol in certain locations or at specific times and other distribution restrictions can also impact the market. Strict regulations surrounding alcohol advertising, labeling, and distribution present significant challenges for the market.      

• Rising Health Consciousness

Health campaigns and studies highlighting the negative effects of excessive alcohol consumption, such as liver disease, cardiovascular problems, and increased cancer risk, are leading consumers to reconsider their drinking habits. As a result, there is a shift towards healthier lifestyles, with some consumers opting for low- or no-alcohol alternatives. This changing consumer behavior could impact overall demand for spirits. Increasing awareness of the health risks associated with alcohol consumption is a growing concern for the market.

This market report provides details of new recent developments, trade regulations, import-export analysis, production analysis, value chain optimization, market share, impact of domestic and localized market players, analyses opportunities in terms of emerging revenue pockets, changes in market regulations, strategic market growth analysis, market size, category market growths, application niches and dominance, product approvals, product launches, geographic expansions, technological innovations in the market. To gain more info on the market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

Impact and Current Market Scenario of Raw Material Shortage and Shipping Delays

Data Bridge Market Research offers a high-level analysis of the market and delivers information by keeping in account the impact and current market environment of raw material shortage and shipping delays. This translates into assessing strategic possibilities, creating effective action plans, and assisting businesses in making important decisions.

Apart from the standard report, we also offer in-depth analysis of the procurement level from forecasted shipping delays, distributor mapping by region, commodity analysis, production analysis, price mapping trends, sourcing, category performance analysis, supply chain risk management solutions, advanced benchmarking, and other services for procurement and strategic support.

Expected Impact of Economic Slowdown on the Pricing and Availability of Products

When economic activity slows, industries begin to suffer. The forecasted effects of the economic downturn on the pricing and accessibility of the products are taken into account in the market insight reports and intelligence services provided by DBMR. With this, our clients can typically keep one step ahead of their competitors, project their sales and revenue, and estimate their profit and loss expenditures.

Recent Developments

• In March 2023, Pernod Ricard unveiled its intention to acquire a majority stake in Skrewball, a rapidly growing flavored whiskey brand known for its super-premium quality. Skrewball gained fame as the pioneer of peanut butter-flavored whiskey, offering a unique and smooth nutty flavor profile. This strategic partnership aligns with Pernod Ricard's focus on consumer-centricity and premiumization, enhancing its extensive portfolio of iconic wine and spirits brands
• In March 2023, Bacardi introduced Bacardi Caribbean Spiced Rum, a spiced-aged rum crafted from a blend of aged rum infused with spices, pineapple, coconut water, and coconut blossoms. This product launch further diversifies Bacardi's offering and adds to its portfolio of innovative spirits
• In April 2022, Diageo India introduced a fresh single-malt whisky and two mixers for its Johnnie Walker and Black & White Scotch brands. The new whisky was crafted using six-row barley grains specific to Rajasthan and matured at a temperature exceeding 100°F. In addition, factors such as rapid urbanization, increasing middle-class income, and greater consumer buying power all play a role in the increasing demand for alcoholic beverages               

Spirits Market Scope

The market is segmented on the basis of type and distribution channel. The growth amongst these segments will help you analyze meagre growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Ingredient Type

• Gin
• Brandy
• Cane
• Vodka
• Flavoured Spirits
• Rum
• Natural Spirits
• Whiskey
• Tequila

Distribution channel

• Supermarkets and Hypermarkets
• On-Trade
• Specialist Retailers
• Online Convenience Stores
• Others

Spirits Market Regional Analysis/Insights

The market is analyzed and market size insights and trends are provided by country, type, and distribution channel as referenced above.

The countries covered in the market are U.S., Canada, Mexico, Germany, France, U.K., Netherlands, Switzerland, Belgium, Russia, Italy, Spain, Turkey, Rest of Europe, China, Japan, India, South Korea, Singapore, Malaysia, Australia, Thailand, Indonesia, Philippines, Rest of Asia-Pacific, Saudi Arabia, U.A.E., South Africa, Egypt, Israel, Rest of Middle East and Africa, Brazil, Argentina, and Rest of South America.

Asia-Pacific is expected to dominate and be the fastest growing region in the market due to notable demand for Western-style craft beer that incorporates local tastes and preferences. The changing consumer preference from traditional to imported alcohol is also a market driver. Countries like China show a preference for wines from prestigious vineyard regions like Bordeaux due to their esteemed history and quality. In addition, there is a rising popularity of whiskies, cognacs, and imported wines across the region as consumers gravitate towards more upscale products.

The country section of the report also provides individual market-impacting factors and changes in market regulation that affect the current and future trends of the market. Data points like downstream and upstream value chain analysis, technical trends, Porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of regional brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.

Competitive Landscape and Spirits Market Share Analysis

The market competitive landscape provides details of competitors. Details included are company overview, company financials, revenue generated, market potential, investment in R&D, new market initiatives, regional presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points provided are only related to the companies' focus on the market.

Some of the major market players operating in the market are:

• Davide Campari-Milano N.V. (Netherlands)
• Diageo (U.K.)
• Halewood Sales (U.K.)
• ASAHI GROUP HOLDINGS, LTD. (Japan)
• Accolade Wines (Australia)
• Bacardi Limited (Bermuda)
• Mike's Hard Lemonade Co. (U.S.)
• CASTEL FRÈRES (France)
• SUNTORY HOLDINGS LIMITED (Japan)
• Anheuser-Busch Companies LLC (Belgium)
• Brown-Forman (U.S.)
• United Brands Company (U.S.)
• Pernod Ricard S.A. (France)
• Miller Brewing Co. (U.S.)

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