The Global Distilled Spirits Market was valued at US$ 30.5 Billion in 2022 and is expected to expand at a CAGR of 4.89% and market value is expected to reach US$ 44.7 Billion during 2023-2030.
Distilled spirits are a class of alcoholic beverage obtained from the distillation of a mixture produced from alcoholic fermentation. The distillation process primarily increases the alcohol content and reduces the dilution by components such as water. This results in higher alcohol content in distilled spirits compared to brewed beverages. The minimum alcohol content in distilled spirits is 20% by volume and is therefore called hard liquor. However, the minimum alcohol content in wine, cider, and beer is less than 10% by volume, therefore the drinks are not classified as spirits.
Increasing Demand for Alcoholic Beverages:
The increasing demand for alcoholic beverages among steadily growing adult and young demographic worldwide is a major factor propelling the growth of the market. Moreover, the rise in the number of distribution channels such as outlets in airports, online sales, and separate counters for females fuel demand for alcoholic beverages, which in turn boosts the global distilled spirits market growth. R&D in the manufacturing of distilled spirits plays an important role in the distilled spirits market, as demand for these products largely depends on changing tastes and preferences of consumers. According to Distilled Spirits Council in U.S. on 3 february 2022. In 2021, spirits gained market share of the total U.S. beverage alcohol market with sales rising 1.7 share points to 41.3 percent. This represents the 12th straight year of market share gains for spirits overall.
Buying Power of Consumer Increasing:
Distilled Spirit market is driven by the increasing buying power of the consumer and increasing demand for beverages and normal flavors. The younger generation has an increasing demand for beverages and alcohol-based beverages and the young generation prefers high-quality goods. Therefore, firms are increasing the quality of alcoholic beverages.
Use of Alcohol Cause a High Burden of Disease
The harmful use of alcohol causes a high burden of disease and has significant social and economic consequences. Stringent government regulations in several economies such as ban on the advertisement of alcoholic beverages in public places, permissible consumption of these products are the factors hindering the growth of the distilled spirits market. According to WHO (World Health Organization), alcohol consumption causes death and disability relatively early in life. In people aged 20-39 years, approximately 13.5% of total death are attributed to alcohol.
Global Distilled Spirits Market- Impact of Coronavirus (Covid-19) Pandemic
Covid-19 had a negative impact on distilled spirit market, as lockdown was imposed on a large part of the globe and everything got shut down. It affected the manufacturing and production process of the beverages market. The market was shut down and everyone was out just to buy essential products, It affected the whole market, and demand gets decreased.
Figure1. Global Spirits Market Share, By Product, 2021
Based on product, the market is segmented into whiskey, vodka, rum, gin, tequila, brandy, and others. The vodka segment dominated the distilled spirits market in 2021. This dominance is due to the increasing demand for the premium and super-premium categories of vodka. A premium range of vodkas contains high-quality water which in turn, differentiates them from the regular varieties.
Based on the distribution channel, the distilled spirits market is segmented into supermarkets, hypermarkets, specialty stores, drug stores, online, and others.
Distilled Spirits Market Report Coverage
|Base Year:||2022||Market Size in 2022:||US$ 30.5 Bn|
|Historical Data for:||2017-2021||Forecast Period:||2023|
|Forecast Period 2023 to 2030 CAGR:||4.89%||2030 Value Projection:||2023-2030|
Diageo plc, Pernod-Ricard SA, Constellation Brands Inc., Brown-Forman Corporation, Remy Cointreau SA, Marie Brizard Wine & Spirits, Lapostolle SA, and Berentzen-Gruppe AG.
|Restraints & Challenges:||
Figure2. Global Spirits Market Share, By Region, 2021
In terms of revenue, Asia Pacific dominated the distilled spirits market in 2021 and accounted for a share of 40%. Major factors propelling the growth of this market include the steadily increasing demand for alcoholic beverages and the rising consumption of alcohol in emerging economies including India and China. In China, the sales of imported spirits have grown almost four times in the last ten years. In addition to this, the high demand for the local white spirit, commonly known as baijiu is further aiding the market growth of distilled spirits in China. Europe is the second largest region that dominates distilled spirit market. This dominance is majorly due to the extensive consumption of alcoholic beverages and the steadily growing young population (21 to 64 years old) in the region.
On February 13, 2023, Baileys a brand of Diabeo plc, which is a global leader in beverage alcohol, partners with the Eurovision song contest, bringing the ultimate treat to the world’s biggest live music event.
On September 2022, Johnnie Walker a brand of Diabeo plc, has become a staple scotch whiskey in more than 180 countries, Johnnie Walker has taken blended scotch whiskey from the four corners of Scotland and shared its distinct, centuries-old blend with the world.
On January 5, 2023, Brown-Forman Corporation, an alcohol beverages company, announced its acquisition of the Diplomatico Rum brand and related assets from Distillers united group S.L. (Spain), An exclusive forum where essential oil distillers and industry experts unite around a passion for raw materials, technology, and innovation. The company announced its agreement to purchase the brand in October 2022, giving Brown-Forman an entry into the growing super premium+ rum category.
On December 2022, Remy Cointreau, which is in production of cognacs, liqueurs, and champagne, commits to increasing the circularity of its bottles with the #Onebottleforeternity project.
Major players operating in the global distilled spirits market include Diageo plc, Pernod-Ricard SA, Constellation Brands Inc., Brown-Forman Corporation, Remy Cointreau SA, Marie Brizard Wine & Spirits, Lapostolle SA and Berentzen-Gruppe AG.
Frequently Asked Questions