PUBLISHER: The Business Research Company | PRODUCT CODE: 1387651
PUBLISHER: The Business Research Company | PRODUCT CODE: 1387651
“Spirits Global Market Report 2024 ” from The Business Research Company provides strategists, marketers and senior management with the critical information they need to assess the market.
This report focuses on spirits market which is experiencing strong growth. The report gives a guide to the trends which will be shaping the market over the next ten years and beyond.
Where is the largest and fastest growing market for spirits? How does the market relate to the overall economy, demography and other similar markets? What forces will shape the market going forward? “The spirits market global report ” from The Business Research Company answers all these questions and many more.
The report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market's historic and forecast market growth by geography.
Spirits are alcoholic beverages produced through distillation and are typically made from the fermentation and distillation of sugars derived from grains or fruits/vegetables.
The primary categories within the spirits industry include whiskey, vodka, rum, tequila, gin, and other types of spirits. Whiskey (sometimes spelled as whisky) encompasses a range of distilled liquors that are produced from a fermented blend of cereal grains and typically aged in wooden barrels, commonly oak. These spirits can be classified into categories such as mass-produced, premium, and distributed through various channels, including off-trade channels (such as retail) and on-trade channels (such as bars and restaurants).
The spirits research report is one of a series of new reports from The Business Research Company that provides spirits statistics, including global market size, regional shares, competitors with spirits share, detailed spirits segments, market trends and opportunities, and any further data you may need to thrive in the spirits industry. This spirits research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.
The spirits market size has grown strongly in recent years. It will grow from $145.07 billion in 2023 to $153.83 billion in 2024 at a compound annual growth rate (CAGR) of 6.0%. The growth observed during the historical period can be attributed to various factors, including the cultural and social significance of spirits, the traditional craftsmanship involved in their production, the expansion of global exports, consumer demand for premium products, and the flourishing mixology and cocktail culture. These elements have played a significant role in shaping the spirits industry.
The spirits market size is expected to see strong growth in the next few years. It will grow to $191.11 billion in 2028 at a compound annual growth rate (CAGR) of 5.6%. Anticipated growth in the forecast period can be attributed to several factors, including the influence of health-conscious consumer preferences, a focus on sustainability and environmental practices, the impact of digital marketing and e-commerce, the popularity of flavored spirits and innovation, the emergence of new markets, and a heightened focus on premiumization within the spirits industry. Major trends expected in the forecast period include the growth of craft distillation, the rise of low-ABV and non-alcoholic spirits, a stronger emphasis on sustainable and ethical sourcing, the exploration of aging and barrel finishing techniques, and the integration of global flavors and fusion in the creation of new spirit offerings.
The world's population is on the rise and is projected to reach 10 billion by 2050. This population growth is expected to lead to increased demand for alcoholic beverages. To meet the needs of the growing population, there will be a necessity to boost crop production, farming activities, and trade volumes. Consequently, companies in the spirits manufacturing (distilleries) market are poised to benefit from the growing demand for their products as a result of the expanding population during the forecast period.
The spirits market is anticipated to experience growth driven by the expanding consumer base for alcohol consumption. Alcohol consumption involves the consumption of alcoholic beverages containing ethanol as the primary active ingredient. The growth in the consumer base for alcohol consumption is a significant factor for the spirits market, as it implies a larger potential customer pool for spirits brands. This, in turn, can lead to increased sales and revenue for the industry as a whole. For instance, in 2023, according to the 2021 National Survey on Drug Use and Health (NSDUH) by the National Institute on Alcohol Abuse and Alcoholism, a US-based government agency, approximately 219.2 million people aged 12 and older had consumed alcohol at some point in their lives. Therefore, the expanding consumer base for alcohol consumption is a driving force behind the spirits market.
The outbreak of COVID-19, an infectious disease with symptoms such as fever, cough, and breathing difficulties, had a significant adverse impact on the spirits manufacturing (distilleries) market in 2020. The disruption of supply chains due to trade restrictions and reduced consumption caused by lockdowns imposed by governments worldwide were major contributing factors. Food and beverage manufacturers rely on the supply of raw materials from both domestic and international sources. Government restrictions on the movement of goods, as well as concerns about contamination in manufacturing facilities, resulted in a halt in production due to a lack of raw materials. Although the pandemic had a negative effect on businesses throughout 2020 and into 2021, it is expected that the spirits manufacturing (distilleries) market will recover from this shock over the forecast period, as it was an unforeseen 'black swan' event and not indicative of underlying or ongoing weaknesses in the market or the global economy.
Spirits manufacturers are now introducing ready-to-mix hybrid beverages to cater to evolving consumer tastes and preferences. Hybrid beverages are a fusion of alcoholic drinks from different beverage categories, utilizing unique flavor combinations, ingredients, and production methods from multiple drink types. Examples include producing spirits or beers in a wine barrel to impart distinctive flavors. Hybrid beverages are particularly prevalent in the spirits category, with products such as beer blended with rum or tea combined with vodka. Popular hybrid beverages include Malibu Red (rum and tequila), Kahlua Midnight (rum and Kahlua), and Absolut Tune (vodka and sparkling wine).
Leading companies operating in the spirits market are placing their focus on premium spirits to capitalize on the growing demand and expand their market presence. Premium spirits are characterized by high-quality ingredients and production methods, resulting in superior alcoholic beverages. For example, in August 2021, Beam Suntory, a Japan-based beverage company, introduced a collection of five premium spirits in North India, including Oaksmith, India's first international Indian whisky, Yamazaki Japanese Whisky, Hibiki Japanese Harmony, Toki Japanese Whisky, and Roku Japanese Craft Gin. This new range offers consumers a diverse selection of premium spirits to choose from, enhancing their overall drinking experience. Moreover, it provides a variety of distinct flavor profiles for a more enjoyable experience.
Major companies operating in the spirits market include Diageo PLC, Pernod Ricard, Thai Beverage Public Company Limited, Brown-Forman Corporation, Kirin Holdings Company Limited, Christian Dior SE, The Molson Coors Brewing Company, Suntory Holdings Limited, Asahi Group Holdings Ltd., Anheuser-Busch InBev SA/NV, Bacardi Limited, Beam Suntory Inc., Remy Cointreau, William Grant & Sons Ltd., The Edrington Group Ltd., Campari Group, Heaven Hill Distilleries Inc., The Patron Spirits Company, Mast-Jagermeister SE, The Macallan Distillers Limited, The Glenmorangie Company, The Balvenie Distillery, The Famous Grouse, The Dalmore, The Glenlivet Distillery, The Aberlour Distillery, The Chivas Brothers, The Glenfiddich Distillery, The Singleton of Dufftown, The Johnnie Walker Company, The Dewar's Company, The Jameson Distillery, The Bushmills Distillery, The Teeling Whiskey Company, The Tullamore Dew Company, The Kilbeggan Distillery.
Asia-Pacific was the largest region in the spirits market in 2023. North America was the second-largest region in the spirits market. The regions covered in the spirits market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.
The countries covered in the spirits market report are: Australia, China, India, Indonesia, Japan, South Korea, Bangladesh, Thailand, Vietnam, Malaysia, Singapore, Philippines, Hong Kong, New Zealand, USA, Canada, Mexico, Brazil, Chile, Argentina, Colombia, Peru, France, Germany, UK, Austria, Belgium, Denmark, Finland, Ireland, Italy, Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, Russia, Czech Republic, Poland, Romania, Ukraine, Saudi Arabia, Israel, Iran, Turkey, UAE, Egypt, Nigeria, South Africa
The spirits market consists of sales of irish whiskey, american whiskey, canadian whiskey, scotch whiskey, flavored vodka, non-flavored vodka, light rum, dark rum, golden rum, spiced rum, black rum, reposado tequila, blanco tequila, anejo tequila, old tom gin, london dry gin, plymouth gin, fruit spirits, honey spirits, ouzo, and other spirits. The companies in the distilleries industry process raw materials into potable liquors, ethyl alcohol, grain alcohol and spirits, package and distribute them through various distribution channels to both on-trade and off-trade establishments. Values in this market are 'factory gate' values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).
The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.