Distilled spirits such as vodka, rum, gin, and whiskey are alcoholic beverages obtained by distilling ethanol produced by means of fermenting grain, molasses, or fruit blend with water. These beverages are enjoyed worldwide owing to their varied flavors. Distilled spirits are consumed either on their own or are often mixed in cocktails. The global distilled spirits market is driven by rising demand for premium and super-premium alcoholic beverages among millennial population.
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 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
Growing demand for premium alcoholic beverages is one of the major trends being witnessed in the global distilled spirits market. Many consumers, especially millennials, are inclined towards premium or super-premium brands rather than ordinary ones. This has been prompting spirits manufacturers to introduce new and premium product variants with distinct flavors to cater to this growing demand. For instance, in 2018, Brown-Forman Corporation released a super-premium whiskey brand called Woodford Reserve Baccarat Edition priced at around $2,500 per bottle to attract premium spirits consumers.
SWOT Analysis
Strength: The global distilled spirits market has strong consumer base and large scale production. The market is well established with strong distribution network globally.
Weakness: Stringent regulatory norms and high taxation policies imposed by various governments hamper the growth of global distilled spirits market. Changing consumer preference toward premium and craft spirits also poses challenges.
Opportunity: Emerging markets in Asia Pacific and Latin America offer huge growth potential due to rising disposable income and changing lifestyle. Innovation in product flavors and variants attract new consumers.
Threats: Growing health awareness and rising prevalence of non-communicable diseases discourage alcohol consumptions. Alternative beverages like craft beer, wine and spirits pose competition. Stringent advertisements and promotion regulations in some countries also restrict market growth.
Key Takeaways
The Global Distilled Spirits Market Share is expected to witness high growth over the forecast period of 2023 to 2030. The market size is projected to grow from US$ 31.99 Bn in 2023 to US$ 63.32 Bn by 2030, registering a CAGR of 7.2%.
Regional analysis: Asia Pacific region dominates the global distilled spirits market and is expected to grow at fastest pace during the forecast period. China, India and Southeast Asian countries offer immense growth opportunities owing to rising spending power, changing social drinking patterns and increasing influence of Western cultures.
Key players: Key players operating in the distilled spirits market are Nestlé, Nutricia, Unilever, Bionova, BASF SE, Abbott, Arkopharma Laboratories, GSK plc., ADM (Archer Daniels Midland Company), DuPont, Kellogg’s Company, Arla Foods amba, DSM, Quantum Naturals Ltd., Adcock Ingram, Ascendis Health Limited, iNova Pharmaceuticals, Vital Health Foods, Jamjoom Pharma, Creso Pharma, and ConnOils LLC. These players are focusing on new product development, expanding distribution channels and strategic mergers to enhance their market share.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it