July 21, 2024
Distilled Spirits Market

Distilled Spirits Market Is Estimated To Witness High Growth Owing To Increase In Socializing And Partying Activities

The 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Distilled spirits refer to alcoholic beverages that are produced by fermenting and then distilling starch/sugar-rich materials like grains, fruits or vegetables. The major product types include whiskey, rum, vodka, gin and tequila. Distilled spirits are consumed for socializing, partying or celebrations. They are also used in cocktails and mixed drinks. The market comprises products from large distilleries as well as craft distilleries.

Market Dynamics:

The distilled spirits market is expected to witness significant growth over the forecast period owing to two major drivers-

Increase in socializing and partying activities: With rise in disposable incomes and adventure seeking behavior, social gatherings like parties, casual get-togethers and pub celebrations have become very common. This has significantly driven the consumption of distilled spirits which are perfect companion drinks for socializing.

Preferences for premium and craft spirits: Consumers are increasingly willing to spend more on premium brands and craft varieties of spirits like small batch whisky, organic vodka and single malt rum which offer superior taste. This premiumization trend is pushing craft distillers to innovate and offer new flavor profiles, thereby driving the market growth.

SWOT Analysis

Strength: Distilled Spirits Market has high revenue generating potential. It has a huge customer base across the globe and strong brand recognition among consumers. The market players have vast distribution network and production facilities. Also, distilled spirits are highly customizable with wide product portfolio and demographic targeting helps increase sales.

Weakness: Stringent government regulations and policies related to alcohol consumption limit the growth potential of distilled spirits market. Heavy taxation imposed on alcoholic beverages increases the product cost. Also, changing consumer preferences towards low-alcohol and health-conscious beverages can hamper the market growth.

Opportunity: emerging economies offer lucrative growth opportunities owing to rising disposable incomes, changing lifestyles and expanding distribution channels. Furthermore, innovation in product flavors and varieties attract young-adult consumer base. Customization and eco-friendly product packaging appeals to new-age consumers.

Threats: Increased health awareness among consumers promotes low-calorie beverage consumption. Also, legal drinking age limits and religious restrictions in some regions pose challenges. Economic uncertainties and global pandemic outbreaks negatively impact the on-trade sales and hospitality industry sales of distilled spirits.

Key Takeaways

The Global Distilled Spirits Market Growth is expected to witness high growth, exhibiting a CAGR of 4.8% over the forecast period, due to increasing consumption in social gatherings and occasions. Distilled spirits are highly consumed beverages worldwide and gain more traction in celebrations.

Regional analysis: Asia Pacific region dominates the global distilled spirits market with over 35% share due to high consumption countries like China, India, Japan and Southeast Asia. Rising disposable incomes and growing young-adult population significantly contributes to the market growth in the region. North America stands as the second largest market for distilled spirits due to presence of key market players and strong consumer base in United States and Canada.

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. Diageo plc and Pernod Ricard SA hold major market share owing to vast production facilities and extensive distribution network across the world.

 

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it