Global Spirits Market – Industry Trends and Forecast to 2029

Global Spirits Market, By Type (Gin, Brandy, Cane, Vodka, Flavoured Spirits, Rum, Natural Spirits, Whiskey and Tequila) Distribution Channel (Supermarkets and Hypermarkets, On-Trade, Specialist Retailers, Online Convenience Stores, Others) – Industry Trends and Forecast to 2029.

Spirits Market Analysis and Size

In terms of tax revenue, the sale of alcoholic beverages has provided numerous benefits in recent years. Over the last decade, spirits and other alcoholic beverages have been the top export items in developed and developing countries. Despite the rise in health consciousness, consumer tastes are constantly shifting and evolving in subtle shifts and evolutions. Manufacturers must keep up with newer trends in order to stay ahead of the competition.

Data Bridge Market Research analyses that the spirits market which was growing at a value of 56 billion in 2021 and is expected to reach the value of USD 154.88 billion by 2029, at a CAGR of 13.56% during the forecast period of 2022-2029. 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.

Spirits Market Scope and Segmentation

Market Definition

Spirit, also known as a distilled beverage, is an alcoholic beverage produced by distillation (the process of separating component substances from a liquid mixture through vaporization and condensation) of an alcoholic fermentation mixture. The distillation process purifies the combination and removes diluting elements such as water to increase alcohol content (alcohol by volume (ABV)).

Global Spirits Market Dynamics

Drivers

• Rising demand for high-end spirits and growing millennial population

As various countries' economies remain strong, consumer interest in high-end spirits and more expensive drinks has grown, fuelled partly by easy access to information and willingness to spend on desired products. As a result, the demand for spirits has increased. Whiskey has remained a popular alcoholic beverage among many drinkers over the years, securing a solid position in premium mixers. This, in turn, is expected to boost the growth of the spirits market. Spirits demand is also inspired by strong sales of high-end and super-premium products.

• Manufacturers focus on ingredient innovations to change according to consumer dynamics

Aside from seeking healthier alternatives, many consumers seek brands that can meet their needs through sustainable sourcing and social responsibility. These factors are driving not only an increase in demand for functional and fusion beverages, but also a dynamic revolution in the alcoholic beverage industry. Several companies want to increase the production of no- or low-alcohol drinks, which necessitates a strong emphasis on ingredient innovation. Manufacturers are developing high-quality ingredients with low impurities and clean flavour, which will continue to be critical in gaining a distinct market competitive advantage.

Opportunities

Pre-mixed or RTD alcoholic drinks are becoming more popular, potentially increasing demand for spirits, due to increased demand for grab-and-go convenience that fits into today's consumers' busy yet healthy lifestyles. Aside from beer and soda, canned wine, cocktails, and hard seltzers are gaining popularity, owing to the on-the-go culture. Furthermore, in order to increase sales, alcohol providers focus on direct-to-consumer offerings via online retail. These elements will continue to support spirits' future prospects.

Restraints

Anti-alcohol campaigns are expected to offset the growth of the global spirits market in various countries. These campaigns seek to highlight the negative consequences of alcohol consumption. Furthermore, increased alcohol taxation is a barrier to the growth of the spirits market.

This spirits 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 spirits market contact Data Bridge Market Research for an Analyst Brief, our team will help you take an informed market decision to achieve market growth.

COVID-19 Impact on Spirits Market

Due to the COVID-19 pandemic, governments have been forced to close numerous pubs, restaurants, and taprooms in order to maintain social distance norms. This has had a negative impact on the global spirits market. Total brewery sales in the United States fell 30.5 percent in May compared to the previous year, according to a Brewers Association study. As year-on-year sales fell in April, nearly 89 percent of breweries either stopped or slowed production. However, as the COVID-19 situation has gradually improved, with fewer restrictions imposed on foodservice channels, the spirits market is expected to regain previously high levels of consumption this year.

Recent Development

• In June 2022, Dough Ball, announced its expansion in multiple states across the U.S. to increase its geographical reach.
• In January 2022, Diageo announced that they will invest £73 million to open a new brewery called “Guinness at old Brewer’s Yard” in London. It is expected to open in autumn 2023.
• In June 2022, Brown-Forman Corporation and The Coca-Cola Company formed a global partnership and announced that they are going to launch a ready-to-drink mixed cocktail with Jack Daniels and coke. It is expected to be launched in Mexico in late 2022.

 Global Spirits Market Scope

The spirits 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 spirits market is analysed and market size insights and trends are provided by country, tyoe and distribution channel as referenced above.

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

Asia-Pacific dominates the spirits market. The region has enormous craft beer market potential, with strong demand for Westernized craft beer that is blended with local taste and preferences. One of the driving factors for the region's alcoholic beverage market growth has been a shift in consumer preferences away from traditional alcohol and toward imported alcohol. Due to their renowned heritage and prestige, consumers in countries such as China prefer wines produced by famous vineyard regions such as Bordeaux. Whiskies, cognacs, and imported wines are becoming increasingly popular throughout the region as consumers shift toward higher-end products.

The country section of the report also provides individual market impacting factors and changes in market regulation that impact the current and future trends of the market. Data points like down-stream and upstream value chain analysis, technical trends and porter's five forces analysis, case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of global brands and their challenges faced due to large or scarce competition from local and domestic brands, 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 spirits market competitive landscape provides details by competitor. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, global presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, application dominance. The above data points provided are only related to the companies' focus related to spirits market.

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

• Davide Campari-Milano N.V. (Netherlands)
• Diageo PLC (U.K.)
• Halewood International Limited (U.K.)
• Asahi Group Holdings, Ltd. (Japan)
• Accolade Wines (Australia)
• Bacardi Limited (Bermuda)
• Mike's Hard Lemonade Co. (U.S.)
• Castel Group (France)
• Suntory Holdings Limited (Japan)
• Anheuser-Busch InBev SA/NV (Belgium)
• The Brown-Forman Corporation (U.S.)
• United Brands Company, Inc. (U.S.)
• PernodRicard SA (France)
• The Miller Brewing Company (U.S.)