As per the Future Market Insights (FMI) estimates, the global spirits market is estimated at USD 59,408 million in 2023. During the forecast period, the market is anticipated by FMI to expand at a CAGR of nearly 4%. By 2033, the sales of spirits on a global scale are estimated to be worth around USD 90,288.9 million.
The global sales of spirits have been increasing over the past 10 to 20 years. This has provided lucrative opportunities to spirit manufacturers in terms of revenue generation and production expansion. The widespread craze for spirits and beer turns out to be a constant source of motivation for manufacturers to keep on developing newer versions of these beverages.
Over the past few years, the sales of alcoholic drinks have provided numerous advantages in terms of tax revenue. Spirits and other alcoholic drinks have been top exporting items in established and emerging countries alike over the past decade. Production technologies and beverage firms have not altered to a large extent, exhibiting growth at a nominal CAGR.
In the coming years, favorable policies implemented by various governments are anticipated to be the leading contributors to the spirits market growth. Thus, the present market valuation of spirits is projected to multiply by 2.2X during the forecast period (2023 to 2033).
As per the study, the demand for flavored spirits, vodka, scotch, rum gin, and other whiskeys has been increasing. Of these, vodka and scotch are anticipated to generate around 41% of revenue for the spirits business.
Sales of fresh, and new flavors over their original variants are growing and are expected to drive up the profitability of craft spirit makers. Moreover improving consumer knowledge regarding various flavors, ingredients, qualities, and other characteristics has encouraged market players to focus on branding and marketing strategies. Also, in the last few years, the demand for craft spirits is progressively gaining attraction from both consumers and leading spirit producers.
| Attributes | Details |
|---|---|
| Global Market Valuation in 2022 | USD 57,123 million |
| Estimated Global Market Share in 2023 | USD 59,408 million |
| Forecasted Global Market Size by 2033 | USD 90,288.9 million |
| Projected Global Market Growth Rate from 2023 to 2033 | 4% CAGR |
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Based on the numbers obtained from the survey report on sales of spirits around the world, the total value of the market was USD 51,234 million in 2016. Before the outbreak of the Covid-19 pandemic, the overall market registered a growth rate of 2%. So, the net worth of spirits sold around the world in 2018 was nearly USD 54,423.6 million.
Overall sales in the alcoholic drinks industry have been driven by the surge in demand for spirits, wine, and other categories. Changes in consumer preferences and favorable government have also aided the emerging trends in the global spirits market.
Also, cultural and regional preferences have been affecting the purchase of spirits. Future Market Insights projects the spirits sales to thrive at a 4% CAGR between 2023 and 2033 in comparison to the CAGR of 1.2% posted between 2018 and 2022.
The rising popularity of premium alcoholic drinks owing to higher consumer spending could be one of the key factors for the rapid development of the spirits industry over the predicted period. Moreover, the growing popularity and expansion of bars, pubs, hotels, and restaurants serving alcoholic beverages are poised to propel the sales of spirits further.
To foster reputation and brand popularity among customers, prominent spirit producers are also actively participating in various marketing initiatives. As an illustration, local businesses are implementing social media initiatives aimed at promoting awareness about moderate alcohol use.
Principal Consultant
Spirits Manufacturers in China Investing Towards Expansion of Supply Chain
Considering the fact that around 35 to 45% of alcoholic beverage consumption is for spirits. China itself offers notable revenue generation opportunities for spirit manufacturers and distributors.
Recently, as China's spirit consumption surpassed the value of 1,950 million liters, it turned out to be a constant source of demand for spirits. Hence, the majority of manufacturers of spirits invested in establishing strong supply-chain networks in Asian countries.
The China spirit market is expected to gain 478 BPS during the forecast period of 2023 to 2033.
| Regional Market Comparison | Global Market Share in Percentage |
|---|---|
| United States | 32% |
| Germany | 15% |
| Japan | 1.2% |
| Australia | 0.9% |
Per Capita Consumption of Spirits to Remain Considerably High in South Korea and Estonia
South Korea has emerged as a lucrative market for spirits and exhibits high potential to expand in the coming years. It is predicted to show a considerable growth rate over the assessment period.
Being a country with high per capita consumption of spirits, South Korea is poised to provide maximum absolute growth opportunities for the upcoming decade. In a similar context, Estonia, a European country, comprises of per capita spirit consumption capacity of around USD 6.7. This may remain the second most lucrative market for manufacturers looking to establish themselves in this market.
Thus, South Korea and Estonia are expected to account for the maximum market value share of the East Asia spirit market and Europe spirit market respectively.
| Regional Markets | CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 6% |
| China | 6.5% |
| India | 4.6% |
Whiskey is the Widely Preferred Beverage
The recent trend of partying at clubs, bars, cafes, and pubs in developing economies like India and China owing to attractive pay packages and changing lifestyles. This is likely to result in surging demand for spirits in the coming years. Varied types of spirits such as whiskey and vodka are mostly consumed during outings. Furthermore, whiskey is expected to gain a higher market share by product type by 2033 end.
| Category | By Product Type |
|---|---|
| Top Segment | Whiskey |
| Market Share in Percentage | 28% |
| Category | By Category |
|---|---|
| Top Segment | Mass |
| Market Share in Percentage | 65% |
| Category | By Distribution Channel |
|---|---|
| Top Segment | Indirect Sales |
| Market Share in Percentage | 71% |
Indirect Channel to Influence Market Growth
The indirect channel in the spirits market is expected to show a substantial market value share than that of the direct channel. Owing to the highest consumption of alcoholic beverages from hypermarkets/supermarkets. It is predicted to continue exhibiting high growth through the forecast period (2023 to 2033).
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The market consists of numerous competitors. Some top spirits market participants such as Bacardi, Diageo plc., Pernod-Ricard SA, Brown-Forman Corp., Constellation Brands, Inc., Remy Cointreau SA, and others. These key players are focusing on introducing and innovating a wide variety of products to increase their consumer base and gain a competitive advantage.
Other spirit manufacturers, including Pernord Richard, ThaiBev, Diageo, and Suntory, are also diversifying their source of income over this opportunity. For instance, Suntory revealed plans to offer a bottle of 50-year-old Yamazaki spirit in the year 2020, which is the Ultra-Rare 55-Year Yamazaki Single Malt made.
Recent Developments by the Spirits Industries
Chivas Brothers made a USD 88 million investment in July 2022 for the expansion of its strategic single malt distilleries across Europe. To fulfill the rising demand for Scotch across the world, the money invested is expected to be used to upgrade sustainable distillation techniques. This higher investment by the company at its Speyside distilleries is also expected to significantly increase its production capacity.
Bacardi Limited in India introduced their Good Man Premium Brandy in February 2022. It was created with keeping the taste of domestic customers in mind. It is created mostly by combining grape brandies from France and India. Bacardi India's product release into the brandy and Indian-made foreign liquor (IMFL) categories is considered to be premium blended brandy.
Diageo in India introduced the nation's first-ever small-batch, artisanal craft whiskey completely made up of Whiskey in June 2021. It is the premiumization strategy of the company, which emphasizes brand refurbishment and innovation, and the brand value strengthened by this launch.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million or billion for Value and MT for Volume |
| Key Regions Covered | North America; Latin America; Europe; East Asia; South Asia; Oceania; and the Middle East & Africa |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Chile, Peru, Germany, United Kingdom, Spain, Italy, France, Russia, Poland, China, India, Japan, Australia, New Zealand, GCC Countries, North Africa, South Africa, and Turkey |
| Key Segments Covered | Product Type, Category, Application, Distribution Channel, and Region |
| Key Companies Profiled | Diageo plc.; Pernod-Ricard SA; LVMH; Jose Cuervo; Patrón; Beam Suntory; Brown-Forman Corp.; Constellation Brands, Inc.; Remy Cointreau SA; Marnier Lapostolle SA; Belvedere SA; Berentzen-Gruppe AG.; William Grant & Sons; The Edrington Group; Kweichow Moutai Group; Wuliangye; Yanghe Brewery; Daohuaxiang; Luzhou Laojiao; Others |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Drivers, Restraints, Opportunities and Threats Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The spirits market registers USD 59,408 million in revenue in 2023.
The global spirits market revenue is projected to exceed USD 90,288.9 million by 2033.
Sales of spirits are anticipated to upsurge at a 4% CAGR through 2033.
The United States points to strong spirits revenue prospects from a thriving cocktail culture and growing premium craft segments.
The spirits market secured USD 57,123 million in revenue in 2022, registering a CAGR of 1.2%.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Product Type 5.1. Vodka 5.2. Rum 5.3. Whiskey 5.4. Gin 5.5. Tequila 5.6. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Category 6.1. Mass 6.2. Premium 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 7.1. Household 7.2. Commercial 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Distribution Channel 8.1. Direct 8.2. Indirect 8.2.1. Hypermarkets/Supermarkets 8.2.2. Specialty Stores 8.2.3. Independent Retailers 8.2.4. Online Retailers 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. Asia Pacific 9.5. MEA 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 14. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 15. Key Countries Market Analysis 16. Market Structure Analysis 17. Competition Analysis 17.1. Diageo plc 17.2. Pernod-Ricard SA 17.3. LVMH 17.4. Jose Cuervo 17.5. Patrón 17.6. Beam Suntory 17.7. Brown-Forman Corp. 17.8. Constellation Brands, Inc. 17.9. Remy Cointreau SA 17.10. Marnier Lapostolle SA 17.11. Belvedere SA 17.12. Berentzen-Gruppe AG 17.13. William Grant & Sons 17.14. The Edrington Group 17.15. Kweichow Moutai Group 17.16. Wuliangye 17.17. Yanghe Brewery 17.18. Daohuaxiang 17.19. Luzhou Laojiao 18. Assumptions & Acronyms Used 19. Research Methodology
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Spirits Market
