Global Spirits Market Assessment, By Type [Clear Spirits, Dark Spirits], By Alcohol by Volume [Below 40%, 40% to 60%, Above 60%], By Distribution Channel [Off Trade, On Trade], Region, Opportunities and Forecast, 2017-2031F

Global Spirits Market is projected to witness a CAGR of 6.5% during the forecast period 2024-2031, growing from USD 176.67 billion in 2023 to USD 293.41 billion in 2031.

Global Spirits Market – Industry Trends and Forecast to 2031

Global spirits market is projected to witness a&nbsp;CAGR of 6.5%&nbsp;during the forecast period 2024-2031, growing from&nbsp;USD 176.67 billion&nbsp;in 2023 to&nbsp;USD 293.41 billion&nbsp;in 2031. The spirits market is experiencing healthy growth driven by factors such as increased disposable income, growing demand of cocktail culture, and the innovation in flavor mixing and packaging. Spirits, also known as distilled spirits or hard liquor, are alcoholic beverages with a high alcohol content, typically ranging from 20 % to 50% alcohol by volume or higher. The market encompasses for wide range of alcoholic beverages including whiskey, rum, vodka, gin, and tequila. The shift towards social drinking experiences and premiumization is responsible for consumer drinking patterns, creating opportunities for new market entrants and established brands to innovate and capture market share.
For instance, in May 2024, alcohol industry is experiencing shifts in the drinking patterns of consumers, especially among GenZ, as &lsquo;super-premium liquor is set to grow by 13% by 2024.
<h2 style="text-align: justify;">Worldwide Popularity of Cocktail Culture Drives the Demand</h2>
The demand for spirits in the market is rising globally as the worldwide popularity of cocktail culture is increasing. Cocktails once considered niche or reserved for special occasions have now become go-to choices in bars, restaurants, and get together at homes. The cultural shift has fuelled a growing interest in spirits as essential components of cocktail recipes. Consumers are now increasingly experimenting with different flavors and ingredients, leading to a surge in the demand for various spirits such as vodka, gin, rum, tequila, and whiskey.
Bartenders, influencers, and social media platforms play pivotal roles in promoting new cocktail trends and driving consumer curiosity about the new flavors of spirits. In addition, the rise of craft cocktails has elevated the status of premium and artisanal spirits, with supporters seeking out unique and high-quality ingredients to craft their signature drinks. This trend drives the sales of spirits and fosters innovation in the industry as producers respond to evolving consumer preferences and demand for diverse flavor profiles. Ultimately, the cocktail culture phenomenon reflects a broader shift towards experiential and social drinking experiences, shaping the approach of global spirits market growth.
For instance, in December 2024, Bacardi Limited stated in its annual Bacardy Trends report that people are reshaping the cocktail culture by redefining moderate drinking and finding it as memorable experiences back at the bar with families and friends.
<h2 style="text-align: justify;">Growing Advancements and Innovation in Flavor and Packaging Design</h2>
For the landscape of spirits, innovation and advancements in flavor and packaging design have become crucial. Flavors are evolving beyond traditional offering, with distilleries experimenting with unique ingredients and techniques to create distinctive taste profiles. It includes infusion with botanicals, fruits, and herbs, as well as barrel aging in unconventional casks such as wine or rum barrels to impart distinctive taste profiles.
According to an article published by Park Street in January 2024, SunBoy, an alcoholic coconut water producer released its flavorful spirits mixed with real fruits flavors, such as mango, pineapple, and tangerine. Also, it is the first pack of this brand with no added sugar and 5% alcohol content.
Furthermore, packaging design has undergone a regeneration, with brands investing heavily in aesthetics to attract consumers, sleek, minimalist designs competing for attention alongside more elaborate, artisanal packaging, telling a story and craftmanship. Technological innovation packaging of bottles, sustainable materials, and eco-friendly packaging solutions are gaining importance, aligning with growing consumer concerns about environmental impact.
Overall, these advancements improve the sensory experience of enjoying spirits as well as play a pivotal role in brand differentiation and marketability, which helps in strengthening the market growth.
<h2 style="text-align: justify;">Whiskey Holds Largest Market Share</h2>
Whiskey holds the largest market share as compared to the other segments as it has deep cultural roots in regions such as the United States, Scottland, and Ireland. These regions contributed to its widespread popularity and diverse varieties such as Irish Whiskey, bourbon, and Scotch.
For instance, in March 2023, more than 6.1 million liters of Irish Whiskey was sold in 2022, as per the Distilled Spirits Council of the United States.
For instance, in August 2023, Royal Statue launched two sets of luxury blended Scotch whiskies &lsquo; Jubilee Edition and the Royal Salute House of Quin&rsquo;. These would be available in Mumbai Duty Free at the departures store at Chhatrapati Shivaji International Airport. In addition, the launch aims to help the company to increase the company&rsquo;s presence in the Indian market.
This market is further propelled by its extensive range from high-end options to affordable ones, catering to diverse consumers. The popularity of whiskey in emerging markets, particularly in Asia and Latin America, boosts its market share as these regions experiencing economic growth and a rising middle class sector. It can be enjoyed neat, with ice cubes, or as a key ingredient in a wide range of cocktails, which makes it accessible to different consumers preferences. The aging process adds a layer of exclusivity and perceived value, with aged bottles often fetching premium prices. In addition, the global distribution and marketing efforts by major whiskey producers ensure its availability and recognition worldwide. These factors collectively help whiskey maintain the largest market share in the competitive sprits market.
<a href="https://www.marketsandata.com/industry-reports/spirits-market/sample-request">Download Free Sample Report</a>
<h2 style="text-align: justify;">Asia-Pacific Dominates Spirits Market</h2>
Asia-Pacific dominates the global spirits market due to several key factors such as the region boasts a large and quickly growing population with increasing disposable incomes, which drives higher consumption of alcoholic beverages. Cultural practices and social norms in countries such as China, India, and Japan contributing significantly to the demand for spirits, as alcohol is often an integral part of social and business gatherings. Economic growth in the region has led to urbanization and a burgeoning middle class with a taste of premium and imported spirits, further boosting the market expansion. In addition, the presence of established local spirits such as Japanese whiskey, Chinese baiju, and Indian whiskey have strong domestic and international appeal, impacting the region&rsquo;s influence. Moreover, the marketing strategies and investments done by global spirits companies and investments by these companies in Asia-Pacific, combined with the increasing popularity of Western drinking habits, solidifying the region&rsquo;s dominant position in the global spirit market.
In March 2022, Bacardi India introduced Indian-Made Foreign Liquor category with the launch of Good Man brady. The launch aims to strengthen its brown spirits while the company is dedicated to tapping the premium brandy segment by offering India's modern-day consumers a supreme experience with their latest innovation.
Future Market Scenario (2024 &ndash; 2031F)
1.&nbsp;Enhancing the market reach and convenience by expanding the sales channels digitally helps in strengthening the market growth.
2.&nbsp;Availability of low-alcohol spirits with customized flavors and promoting it with food pairings helps in driving the market growth. For instance, Seedlip a non-alcohol spirit brand introduced its new addition &lsquo;the Seedlip Notas de Agave&rsquo; with warm and vibrant taste with the blend of pickly pear and blend of zesty lime.
Report Scope
&ldquo;Spirits Market Assessment, Opportunities and Forecast, 2017-2031F&rdquo;,&nbsp;is a comprehensive report by Markets and Data, providing in-depth analysis and qualitative and quantitative assessment of the current state of global spirits market, industry dynamics, and challenges. The report includes market size, segmental shares, growth trends, opportunities, and forecast between 2024 and 2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
<table>
<tbody>
<tr>
<td width="301">
Report Attribute
</td>
<td width="301">
Details
</td>
</tr>
<tr>
<td width="301">
Base Year of the Analysis
</td>
<td width="301">
2023
</td>
</tr>
<tr>
<td width="301">
Historical Period
</td>
<td width="301">
2017-2022
</td>
</tr>
<tr>
<td width="301">
Forecast Period
</td>
<td width="301">
2024-2031
</td>
</tr>
<tr>
<td width="301">
Projected Growth Rate
</td>
<td width="301">
CAGR of 6.5% between 2024 and 2031
</td>
</tr>
<tr>
<td width="301">
Revenue Forecast in 2031
</td>
<td width="301">
USD 293.41 billion
</td>
</tr>
<tr>
<td width="301">
Segments Covered
</td>
<td width="301">
Type, Alcohol By Volume, Distribution Channel
</td>
</tr>
<tr>
<td width="301">
Regions Covered
</td>
<td width="301">
North America, Europe, South America, Asia-Pacific, Middle East and Africa
</td>
</tr>
<tr>
<td width="301">
Key Companies Profile
</td>
<td width="301">
Diageo plc, Pernod Ricard S.A., Brown-Forman Corporation, Asahi Group Holdings, Ltd., Bacardi Limited, LVMH Mo&euml;t Hennessy Louis Vuitton, Jiangsu Yanghe Brewery Co., Ltd., Pernod Ricard USA, Constellation Brands, Inc., Mike's Hard Lemonade Co.
</td>
</tr>
<tr>
<td width="301">
Customization Scope
</td>
<td width="301">
15% free report customization with purchase
</td>
</tr>
<tr>
<td width="301">
Pricing and Purchase Options
</td>
<td width="301">
Avail the customized purchase options to fulfill your precise research needs
</td>
</tr>
<tr>
<td width="301">
Delivery Format
</td>
<td width="301">
PDF and Excel through email (subject to the license purchased)
</td>
</tr>
</tbody>
</table>
In the report,&nbsp;global spirits market&nbsp;has been segmented into the following categories:&nbsp;
<ul style="text-align: justify;">
<li>By Type
<ul>
<li>Clear Spirits
<ul>
<li>Vodka</li>
<li>Gin</li>
<li>Tequila</li>
<li>Rum</li>
<li>Baiju</li>
<li>Others</li>
</ul>
</li>
<li>Dark Spirits
<ul>
<li>Whisky</li>
<li>Brandy</li>
<li>Cognacs</li>
<li>Others</li>
</ul>
</li>
<li>By Alcohol by Volume (ABV)
<ul>
<li>Below 40%</li>
<li>40% to 60%</li>
<li>Above 60%</li>
</ul>
</li>
<li>By Distribution Channel
<ul>
<li>Off Trade
<ul>
<li>E-Commerce</li>
<li>Multi-Brand Liquor Stores</li>
<li>Specialty Stores</li>
<li>Duty-Free Stores</li>
<li>Canteen Stores Department</li>
</ul>
</li>
<li>On Trade
<ul>
<li>Restaurants (Fine Dine, Casual, Buy Your Own Liquor)</li>
<li>Caf&eacute;/Bars/Pubs</li>
<li>Distilleries</li>
<li>Others</li>
</ul>
</li>
<li>By Region
<ul>
<li>North America</li>
<li>Europe</li>
<li>Asia-Pacific</li>
<li>South America</li>
<li>Middle East and Africa</li>
</ul>
</li>
</ul>
</li>
</ul>
</li>
</ul>
Key Players Landscape and Outlook
Continuous innovation by the key players characterizes the competitive landscape of the global Spirits market. The market is dominated by major players such as Diageo plc, Pernod Richard S.A., Asahi Group Holdings, Ld., and others. These companies lead through extensive portfolios, strong brand recognition, product launch, and brand evolution.
In January 2024, Altos (Pernod Richard-owned brand) launched its newest addition in distilled spirits to cater to modern tequila drinkers. This newly introduced spirit is available in two different flavors &lsquo;the Citricos mixed with mandarin and lemon&rsquo; and &lsquo;Caf&eacute; Natural combined with coffee, cinnamon and Mexican piloncillo.
Emerging markets, particularly in Asia-Pacific, are driving growth due to rising disposable incomes and increasing alcohol consumption. Premiumization trends are evident as consumers seek higher quality products, boosting segments such as whiskey, vodka, and tequila. In addition, innovation in flavors and craft spirits are expanding consumer choices. Spirits manufacturers are concerned with supply chain resilience, product quality, and variety which will likely define the industry's future. Collaborations and developing technologies are projected to increase competition in the fast-paced market.
For instance, in March 2021 Constellation Brands, Inc. announced a future-focused evolution of its domestic wine and spirits distribution network to speed up its business strategy and initiative to long-term value addition for the market. This move supports Constellation&rsquo;s wine and spirits vision to be a forward and innovative, high-end portfolio of distinctive brands and products that deliver remarkable consumer experiences.
Key Players Operating in the Global Spirits Market are:
<ul style="text-align: justify;">
<li>Diageo plc</li>
<li>Pernod Ricard S.A.</li>
<li>Brown-Forman Corporation</li>
<li>Asahi Group Holdings, Ltd.</li>
<li>Bacardi Limited</li>
<li>LVMH Mo&euml;t Hennessy Louis Vuitton</li>
<li>Jiangsu Yanghe Brewery Co., Ltd.</li>
<li>Pernod Ricard USA</li>
<li>Constellation Brands, Inc.</li>
<li>Mike's Hard Lemonade Co.</li>
</ul>
Markets and Data&rsquo;s reports answer the following questions:
<ul style="text-align: justify;">
<li>What is the current and future market size of the product/service in question globally or specific to different countries?</li>
<li>How are the markets divided into different product/service segments and the market size and growth of each segment?</li>
<li>What is the market potential of different product segments and their investment case?</li>
<li>How are the markets predicted to develop in the future and what factors will drive or inhibit growth?</li>
<li>What is the business environment and regulatory landscape specific to the product/service?</li>
</ul>
If you can't find what you're searching for or have any custom requirements for global spirits market, you may approach our team at&nbsp;<a href="mailto:info@marketsandata.com">info@marketsandata.com</a>.

Global Spirits Market Assessment, Opportunities and Forecast, 2017-2031F

Global spirits market is anticipated to experience growth due to increasing worldwide popularity of cocktail culture as consumers are experimenting with different flavors and ingredients, leading to increased demand for various spirits such as vodka, gin, rum, tequila, and whiskey.

FAQs

Industry Reports

Blogs

Case Studies

Industry News

Press Release

Infographics