Liqueurs Market

Liqueurs Market Outlook (2023 to 2033)

The global liqueur market is estimated to reach 130.23 billion in 2023 and is projected to reach a revised size of USD 181.93 billion by 2033. The market is expected to register a CAGR of 3.4% over the forecast period.

In some form or another, alcohol has been consumed by most people across the globe for thousands of years. In the universities and monasteries of Salerno & Bologna (Italy) and Leiden (the Netherlands), complex blends of herbs and secret ingredients were used to create elixirs (or liqueurs) to treat people. The prices of these drinks are mostly determined by the expenses of manufacture and the taxes incurred in connection with those expenditures.

The market is driven by a growing population of young adults, high disposable income, and consumer demand for premium/super-premium products. The lack of penetration in emerging countries and the growth of sport drink markets due to health concerns are expected to limit the market growth. Mergers are expected to remain the key strategy, as players seek to expand their brand portfolios and market share.

• The liqueur is also becoming popular as an after-dinner digestive, appetizer, and cocktail ingredient due to its unique taste. The liqueur market is also experiencing an increasing demand for different types of liqueurs.
• In the forecast period, liqueurs are expected to be used in baked food items, confectionery, and desserts, contributing to market growth. Consumption of liqueurs in chocolates, truffles, and other recipes is likely to increase as well.
• Another key factor driving the liqueur market price is the growing popularity among the youth owing to the different types of liqueur such as Grand Marnier, Amaretto, Sambuca, Cointreau, Bailey's Irish Cream, and Kahlua, among others.
• Manufacturers are expected to benefit from adding new varieties of spirits and beer.
• The liqueur market focuses on innovative packaging and advertisements that promote the growth of the liqueur industry.

Attributes	Details
Liqueurs Market Value (2023)	USD 130.23 billion
Liqueurs Market Expected Value (2033)	USD 181.93 billion
Liqueurs Market Projected CAGR (2023 to 2033)	3.4%

Global Liqueurs Market Historical Analysis (2018 to 2022) Vs. Forecast Outlook (2023 to 2033)

The global liqueur market recorded a CAGR of 2.2% over the past 10 years. The market is expected to record a CAGR of 3.4% over the forecast period.

• Short Term (2022 to 2025): The growing millennial population and changing lifestyle patterns are key factors contributing to the growth of the liqueur market.
• Medium Term (2025 to 2028): Market growth is expected to be fueled by the rising acceptance of liqueur drinking and an increase in pubs and bars around the world.
• Long Term (2028 to 2033): Launching novel products by manufacturers is expected to offer immense growth opportunities. Another trend observed in the market is the launch of flavored alcohol by manufacturers.

Historical CAGR (2018 to 2022)	2.2%
Historical Market Value (2021)	USD 125.95 billion
Forecast CAGR	3.4%

Factors Driving Liqueurs Market

• Growth in the Sedentary Lifestyle
  • The growing spending capacity and the demand for liqueur products are driving the growth of the global liqueur market. One of the crucial drivers of global liqueur market growth is the increasing popularity of luxury liqueurs. Baileys introduced Baileys XC, a good-quality liqueur combining fine spirits, cognac, and cream in quality packaging.
  • Similarly, Bacardi Brown-Forman launched its Just Add Chambord campaign in 2016 to attract customers with its holographic effect and tax-free availability. Baileys XC is a premium liqueur that comes in a blue and gold bottle.
  • Chambord, the finest French black raspberry liqueur from the company and brand. It focuses on making the trend of fine-quality wines even more visible by introducing the Chambord cocktail. As the disposable incomes of the global population growth over the forecast period, the demand for liqueurs will substantially increase, fueling growth in the global liqueur market.
• Increase in Urban Population
  • Market growth for liqueurs is predicted to be sparked by the growing urban population and increasing disposable income. As a result of the introduction of novel flavors of alcohol and manufacturers' expanding product portfolios, the alcohol market has been predicted to grow in the coming future.
  • As an example, Coca-Cola (Japan) Co. announced in July 2019 that it was preparing to enter the alcoholic beverage market. In May 2018, the company launched a canned spirit-based product in the Kyushu region on a trial basis.
• The rise in Demand for Alcoholic Beverages
  • Due to the increase in the popularity of alcoholic beverages, there is a growing demand for herbal-based liqueurs among females who are conscious of their health. There is a significant demand for premium products in the specialty spirits and liqueurs market that address these needs.
  • It is evident that producers are continually reinventing themselves in the field of specialty spirits and liqueurs. This is in order to increase stakeholders' brand equity and differentiate their products from their competitors in this highly competitive market for liqueurs.
• Change in Demographics
  • Another factor that is expected to contribute to the liqueur market is changing demographics coupled with changes in lifestyles. For instance, the legal drinking age varies from state to state in India.
  • It has been noted that in Goa, Uttar Pradesh, and Karnataka, the legal drinking age is 18 years old. In Tamil Nadu, Andhra Pradesh, and in Maharashtra, Delhi, and Punjab, it is 21 years old. As such, the aforementioned statistics imply that India is ideally suited for the growth of the alcohol market in the country.

Restraints Faced by Liqueurs Market: Strict Government Regulations

• Due to growing accidental cases of over-drinking alcohol, strict government regulations and rules will hinder the growth of the alcohol market. As VAT is implemented more stringently, government regulations and taxation are expected to reduce the demand for alcohol.
• For example, governments around the world impose high taxes on liqueurs and related products. They also control and regulate sales. Licensed local businesses and a range of state controls on the trade of liquor result in consumers paying four or five times as much as they would at a distillery, which makes alcohol more expensive. Therefore, it is expected to hamper the growth of the liqueur industry.

Opportunities Driving Liqueurs Market: Acceptance of Liqueurs at Social Gatherings

• A resurgence of traditional liqueurs made of whiskey and rum is expected to lead to lucrative opportunities for the liqueur market share in the coming years. Growing pubs and bars are offering vintage cocktails with flavored liqueurs, which are receiving an increased amount of demand from customers.
• Another significant trend expanding the market opportunities and enhancing the outlook for liqueurs is the rising acceptance of alcohol across the societies of emerging economies. As a result, hotels, pubs, and restaurants that serve alcohol are witnessing an increase in footfall.
• Drinks such as cocktails and liqueurs are also becoming increasingly popular at social gatherings, weddings, and graduation ceremonies.

Liqueurs Market Category-wise Insights

By Type Analysis

Based on type, the liqueur market is segmented into neutrals/bitters, creams, fruit flavors, and others. The fruit-flavored segment has a significant liqueur market share and is projected to record a CAGR of 3.5%. This is due to the increasing popularity of flavored liqueurs such as orange. Also, liqueurs with fruity flavors such as plums, cherries, melons, apples, and pears are increasingly used in tequila-based cocktails.

Liqueurs with fruity flavors like plums, cherries, melons, apples, and pears are growing in demand. Increasing awareness pertaining to the health benefits of fruit liqueurs is likely to propel the market during the forecast period. For example, pear liqueur contains vitamin C, folic acid, and potassium, among others.

By the end of the forecast period, Neutrals / Bitters, one of the segments analyzed in the report, are expected to record a CAGR of 3.2%. This is expected to reach USD 54.7 billion. In light of the ongoing post-pandemic recovery, the cream segment growth has been revised to 3.9% CAGR.

By Product Type Analysis: Market Growth for Liqueurs will be Aided by the Expansion of Glass Bottle Packaging

Glass, PET bottle, metal can, and others make up the packaging of the liqueurs market. A significant CAGR is predicted for the glass segment during the forecast period as consumers continue to prefer sustainable, and premium liqueur beverages. Therefore, glass bottle packaging is expected to remain in high demand throughout the forecast period.

Since glass is durable, nonporous, impermeable to oxygen, and heat-resistant, it preserves and presents flavors exactly as intended, which is why consumers prefer to buy liqueurs in glass bottles.

Region-wise: North America Dominates the Market

North America is expected to become a significant market for alcoholic beverages in the future. This is due to the increasing demand for alcoholic beverages from the young population in countries like the United States and Canada.

In the coming years, the global liqueur market is expected to grow significantly in Europe, due to rising per capita income. This could fuel alcohol demand in countries such as the United Kingdom and Germany.

Regions Leading in Liqueurs Market: Country-wise Analysis

What Makes the United States Liqueurs Market Dominant in North America?

The United States dominates the North American liqueurs market with a total share of 78% in 2023 and is projected to continue exhibiting high demand.

The United States liqueur market is estimated to record a CAGR of 3.5% and is projected to surpass the value of USD 45.1 billion in 2023. This is due to growth in the young-adult population and increased consumption of high-quality alcoholic beverages.

Why is Germany’s Liqueurs Market Considered Lucrative in Europe?

Germany dominates the Europe liqueurs market, with a share of 27%. The liqueur market in Germany is estimated to record a CAGR of 2.6%. Revenue in the liqueurs market is expected to reach USD 52.96 billion in 2023.

Various European nations, including the United Kingdom, Spain, Germany, and France, have a legal drinking age of 18 years, the lowest in the world. The tradition of liqueur in Germany has been around for years and is still gaining popularity in social gatherings and occasions. A key driving force for the liqueur market in Germany is well-established breweries across the region.

What Makes China Liqueurs Market Highly Attractive?

China holds a market share of 50% in Asia Pacific. China is expected to witness steady growth of 3.5% in the market for liqueurs in the forecast period. Urbanization is increasing and disposable incomes are rising in emerging economies like China, which accounts for the rise in consumer demand.

Start-up Ecosystem: The Liqueurs Market

Increasing manufacturers and upcoming players are focusing on introducing new products with different tastes to spur competition among other players. Due to the increased competition in the liqueur market, the prices of the products are being lowered, limiting dealers' revenue margins.

The liqueur market size is expected to increase due to shifting demands and preferences among customers. Dealers are investing in promotional campaigns that will help in captivating customers and drive the growth of the market.

The global liqueurs market and claim-to-fame spirits markets are set to be flooded with various products. As manufacturers strive to gain item differentiation and generous brand value in an extremely competitive market, they are continually improving their claim-to-fame spirits.

Several organizations offer beverages that are a blend of premium rum and tequila to enhance their product line. In spite of the expansion in the demand for natural-based alcohols, mixers are available in various flavors. Manufacturers are offering a variety of natural claim-to-fame spirits to accompany this growing interest.

Competitive Landscape

Several strategies are employed by key manufacturers to compete in an increasingly competitive environment, including new product launches and approvals, mergers and acquisitions, partnerships, and collaborations.

• Terra Limited: Molly's Irish Cream and Mr. Whiskey's Irish whiskey are two of the most popular liqueur products manufactured by Terra Ltd. Along with Irish cream liqueur, Irish vodka, and whiskey liqueur, Terra Ltd. also provides Irish cream liqueur and whiskey liqueur among others. The company was established in 1991 with headquarters in Bailieborough, Ireland.
• Brown-Forman Corporation: A leading beverage manufacturer, Brown-Forman Corporation crafts high-quality spirits and alcohol. Brown-Forman Corporation was established in 1870 and is currently headquartered in Kentucky, the United States. The company operates in 50 cities around the world and is a prominent leader in the wine industry.
• Bacardi Limited: There are more than 200 brands and labels under the Bacardi Limited umbrella, making it one of the biggest family-owned spirit producers in the world. This company was founded in 1862 and is located in Hamilton, Bermuda. It manufactures vodka, white rum, and liqueurs.

Recent Development:

Key players are focusing on novel and innovative approaches for the development of new products. The strategy of expansion, new product launches, and approvals, by key manufacturers, is strengthening their market presence and staying ahead of the competition.

• The shipyard launched Low Tide, in June 2019, launched a minimal-alcohol pale ale. Based on the name, Low Tide carries an alcohol content of only 0.5%.
• In June 2018, Gordon's launched a new zero-alcohol pale ale. The new Ultra-low Alcohol Gin and Tonic Flavored Drinks have a 0.5% ABV and contain only 68 calories, compared to a normal gin and tonic with 219 calories.
• A new line of fruit-flavored vodka was launched by Smirnoff, in April 2019. The newly launched range is called Smirnoff Infusions and features orange, grapefruit, bitters, raspberry, rhubarb, and vanilla.

Prominent Players in Liqueurs Market Include

• Bacardi Limited
• Beam Suntory Inc.
• Brown-Forman Corporation
• Diageo Plc
• Davide Campari-Milano S.p.A.
• GirolamoLuxardo S.p.A
• Lucas Bols B.V.
• Mast-Jägermeister SE
• Pernod Ricard SA
• Remy Cointreau
• DeKuyper Royal Distillers
• E. & J. Gallo Winery
• Peel Liqueur
• Sazerac Company
• Stock Spirits Group

Scope of Report

Attribute	Details
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	USD million for Value and MT for Volume
Key Regions Covered	North America; Latin America; Europe; The Middle East and Africa (MEA); East Asia
Key Countries Covered	The United States, Canada, Brazil, Mexico, Chile, Peru, Germany, the United Kingdom, Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Türkiye
Key Segments Covered	Type, Packaging, Distribution Channel, Region
Key Companies Profiled	Bacardi Limited; Beam Suntory Inc.; Brown-Forman Corporation; Diageo Plc; Davide Campari-Milano S.p.A.; GirolamoLuxardo S.p.A; Lucas Bols B.V.; Mast-Jägermeister SE; Pernod Ricard SA; Remy Cointreau; DeKuyper Royal Distillers; E. & J. Gallo Winery; Peel Liqueur; Sazerac Company; Stock Spirits Group
Report Coverage	Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing	Available upon Request

Liqueurs Market Segmentation by Category

By Type:

• Neutrals/Bitters
• Creams
• Fruit Flavored
• Others

By Packaging:

• Glass
• PET Bottle
• Metal Can
• Others

By Distribution Channel:

• Convenience Stores
• On-premises
• Retailers
• Supermarkets

By Region:

• North America
• Latin America
• Europe
• The Middle East and Africa (MEA)
• East Asia

Frequently Asked Questions

What is the current value of the liqueurs market?

The market is valued at USD 130.23 billion in 2023.

What are the factors driving the liqueurs' sales?

Rising social influences, and innovative packaging designs to drive the market.

Who are the key market players?

Terra Limited, Brown-Forman Corporation, and Bacardi Limited are key market players.

What will be the growth trajectory of the United States?

The United States will hold a total share of 78% in 2023.

Which segment type is likely to grow the market?

Fruit-flavored segment to record 3.5% CAGR by 2033.