Global Distilled spirits market was valued at US$ 25.04 Billion in 2016, according to Global Distilled Spirits Market Report by Product (Whiskey, Vodka, Rum, Gin, Tequila, Brandy and Others), By Distribution Channel (Supermarkets, Hypermarkets, Specialty Stores, Drug Stores, Online and Others). The distilled spirits market is expected to register a CAGR of 4.36% over the forecast period (2017-2025) to reach US$ 36.47 Billion by 2025. The major factors propelling the growth of this market include rising young and adult demographic coupled with the substantial growth in disposable income of the consumers. Thus, making higher quality premium brands of vodkas affordable and popular among the consumers. Furthermore, the rising demand for the domestic vodka is propelling the market growth of distilled spirits. Unflavored and flavored variants of domestic brands including, Burnett from Heaven Hill Brands and E&J Gallo’s New Amsterdam vodka are gaining popularity worldwide thereby, supporting the market growth.
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Key Trends and Analysis of Distilled Spirits Market:
Based on product, the vodka segment held a dominant position in the global distilled spirits market in 2016 and is expected to maintain its dominance throughout the forecast period. This is majorly due to the increasing demand for the premium and super-premium categories of vodka. The quality of water used in the manufacturing process determines the quality of vodka. The premium vodkas is made from superior-quality water, which differentiates them from the regular varieties. Furthermore, high consumption of whiskey in India and Brazil is anticipated to record the highest per capita consumption, worldwide, during the forecast period.
Key Takeaways of the Market:
- Europe dominated the global distilled spirits market stood at US$ 11.27 billion in 2016. The region is projected to witness a CAGR of 3.80% in terms of revenue during the forecast period from 2017-2025. The dominance is majorly attributed to the increasing number of younger population and according to the National Health Service (NHS) England, in 2015, 47% of adult consumed alcohol in the country out of which, 31% were men and 16% were women. Further, the high consumption of alcoholic beverages in the region is contributing in the overall growth of distilled spirits. According to the World Bank Group, Belarus consumed 17.1 liters per person per capita as compared to world average of 6.3 liters per person per capita in 2015.
- Asia-Pacific is projected to be the fastest growing market, witnessing highest CAGR among all the regions during the forecast period. This is majorly due to the increasing demand for the alcoholic beverages in the emerging economies including India and China. In India, Telangana recorded the highest alcohol consumption among all the southern states and according to the data provided by Union ministry of health in 2017, 8.8% of women and 53.9% of men across Telangana consumed alcohol. In addition to this, the rising demand of the local spirits including baijiu and huanjiu in China, is conferring a boost to the overall distilled spirit market. These are the two most common variety of baijiu and also known as China’s vodka. According to the National Center for Biotechnology Information (NCBI), during 2013-2014, overall 76% of men and 36% of women consumed alcoholic beverages and the prevalence for drinking were found highest in younger men.
- 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.