The global Distilled Spirits Market is estimated to be valued at US$ 31.99 Bn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Distilled spirits refer to alcoholic beverages produced by distilling fermented grain, fruit or vegetable mash and contain 35% or more alcohol by volume. They are the most popular drinks consumed worldwide due to their affordable price and availability. Their consumption has grown significantly over the years and provided economic opportunities.
Market key trends:
One of the key trend driving the growth of the Global Distilled Spirits Market Size is the rising demand for premium and super-premium spirit products. Consumers are increasingly preferring finer quality spirits made from unique ingredients. This has encouraged product innovation and premiumization of distilled spirits offerings by various companies. For instance, new variants of gin infused with unusual botanicals are gaining popularity. Another factor propelling the market growth is the shifting preference of millennial population towards craft spirits made using traditional production methods. Furthermore, growing culture of socializing and celebrating occasions at home rather than at bars and restaurants during the ongoing pandemic has also boosted the at-home consumption of distilled spirits.
Strength: The distilled spirits market offers a wide range of alcoholic beverages including whisky, vodka, rum, gin, and Tequila. This variety attracts consumers with different tastes and preferences.
Weakness: High consumption of alcohol can have adverse health effects and lead to addiction. Governments impose various regulations and limitations on advertising and consumption of distilled spirits.
Opportunity: Emerging markets in Asia Pacific and Latin America offer significant growth opportunities owing to rising incomes and changing perceptions towards alcohol consumption. Innovation in product flavors and mixes presents an opportunity to attract new consumers.
Threats: Stringent regulatory environment and increasing health awareness pose threats from anti-alcohol lobbying groups. Rise of non-alcohol and low-alcohol beverage categories also threatens the market. Taxation policies in various countries impact the affordability of distilled spirits.
The global distilled spirits market is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing socialization and celebration routines. Changing attitudes towards luxury drinking is driving the demand for premium varieties.
Regional analysis: The Asia Pacific region is expected to be the fastest growing market for distilled spirits owing to rising disposable incomes, hectic lifestyles, and growth in young drinking population in China, India and other developing countries in the region. North America currently dominates the global market, however countries like China, Mexico and Brazil are projected to surge in the coming years.
Key players: Key players operating in the distilled spirits market are Diageo plc, Pernod-Ricard SA, Constellation Brands Inc., Brown-Forman Corporation, Remy Cointreau SA, Marie Brizard Wine & Spirits, Lapostolle SA, and Berentzen-Gruppe AG. These companies are focusing on geographic and product portfolio expansions to strengthen their positions and tap emerging markets.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it