PUBLISHER: Allied Market Research | PRODUCT CODE: 1344407
PUBLISHER: Allied Market Research | PRODUCT CODE: 1344407
According to a new report published by Allied Market Research, titled, "Luxury Wines and Spirits Market," The luxury wines and spirits market was valued at $229.44 billion in 2021, and is estimated to reach $414.8 billion by 2031, growing at a CAGR of 6.2% from 2022 to 2031.
The luxury wines and spirits market is projected to be fueled by the popularity of experiential marketing. The market for luxury wines and spirits is being supported in a number of ways by the rise of experiential marketing. Experiential marketing enables brands of luxury wines and spirits to connect with consumers more deeply, developing a unique and immersive brand experience. These can include activities that educate consumers about the creation, history, and flavor profiles of the products, such as tastings, dinners, and tours of vineyards and distilleries.
The Europe luxury wines and spirits market held the major share in 2021 and is expected to grow at a significant CAGR during the forecast period. A number of European nations have a long history of producing fine wines and spirits, contributing to the rich cultural heritage of the continent in this area. As a result, there is now a custom of appreciating and valuing fine wines and spirits. The level of disposable income in Europe is rather high, especially in nations like France, Germany, Switzerland, and the UK. As a result, customers in these areas have more money to spend on expensive goods like fine wines and spirits. Travelers from all over the world frequently visit Europe, and many of them are curious to try regional foods and drinks. Luxury wine and spirits are now in high demand, especially in popular travel destinations like France and Italy. Europe has a well-established wine and spirit distribution network with a vast variety of importers, distributors, and retailers. Luxury wine and spirit manufacturers may find it simpler to reach customers and create a presence in the market as a result.
Moreover, Cocktails are alcoholic drinks that contain small amounts of distilled spirit that are mixed with different juices. They are gaining popularity at nightclubs, hotels, and holiday destinations as there are wide varieties of these mixtures available to consumers. A cocktail drink contains a small number of premium spirits and a maximum amount of other ingredients, which are available at a cheaper price, thus is expected to create huge opportunities for the market in the coming years. This rise in popularity is mainly due to changing consumer consumption habits and a shift away from traditional beverages like soft drinks and beer. Consumers, mainly millennials are more health conscious, and they are willing to try new, healthier, alternatives to traditional soft drinks. Thus, this factor is expected to surge the growth in the popularity of cocktails drinks.
However, the major consumers of this market are the top 10% of global earning individuals and they are generally driven by quality and the exclusivity of these products. As a result, the products are usually priced at a premium cost for their finest quality. Moreover, the sales and distributions are limited to selected stores and distributors that ensure overall satisfaction with the consumption of these products. Hence, this restricts the availability of products to the masses through popular retail channels and online websites, which hampers the market growth.
The luxury wines and spirits market is segmented on the basis of type, distribution channel, and region. On the basis of type, the market is classified into wines/champagne and spirits. On the basis of distribution channel, the market is classified into wholesale, retail, e-commerce, and others. On the basis of region, it is analyzed across North America (U.S., Canada, Mexico), Europe (France, Germany, Italy, Spain, UK, Russia, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Thailand, Malaysia, Indonesia, and Rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, UAE, Argentina, and Rest of LAMEA).
The major players operating in the market focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. Brown-Forman Corporation, Pernod Ricard, Bacardi Limited, Thai Beverage PLC, Davide Campari-Milano N.V., Hitejinro co. Ltd, Suntory Holdings Limited, The Edrington group limited, LVMH, Bayadere Group, Campari-Milano, United Spirits Ltd., and Total Wine & More.