Gin Market - 2023-2030

Gin Market - 2023-2030

Global Gin Market reached US$ 22.21 billion in 2022 and is expected to reach US$ 36.84 billion by 2030, growing with a CAGR of 6.53% during the forecast period 2023-2030.

The natural taste and appeal of gin make it the best choice for its use in premium drinks. Gin is best suited as spirits for preparing cocktails and various alcoholic drinks. Increasing worldwide consumption of alcohol and rising demand for these products among younger and millennial populations increase the market expansion.

The growing demand for premium ready-to-drink and luxury spirits fuels the market. The increasing consumer favouritism towards artisanal and small-batch products expands the craft gin demand. The rise in the number of bars and pubs and the use of gin in preparing premium drinks and luxury cocktails is driving the market demand.

With consumer’s increase in consumer interest in innovative products, the producers introducing a range of flavours. The various innovations in packaging and emerging unique bottle shapes and designs make the products shine in the market. For instance, a Spanish alcoholic beverage manufacturer, Legendario SL, launched a new bottle of its premium gin, in February 2023.

Dynamics

Alcohol Socialisation

Rapid urbanisation and westernization are increasing the demand for alcoholic beverages. Growing partying culture and definite use of alcohol in celebrations and festive moods increase the demand for alcoholic beverages. Gins are widely used in the preparation of cocktails. The rising trend of special cocktail parties positively affects the market expansion.

Alcohol socialization is taken as a symbol of sophistication and status. The increased adoption of European culture worldwide and increased socio-economic status among people drives market growth. In addition, the rising number of bars and pubs and consumer preferences for gin-based cocktails of premium brands boost the market growth. World Health Organization states that the average worldwide drinks are approximately 19.4 litres of pure alcohol for males and 7.0 litres for females.

Demand for Ready-to-Drink and Luxury Spirits

Bottled or canned cocktails are trending in the market for their greater convenience. These products are simple to use and handle. Consumers need not worry about the balance of their drink as it is readily available with pre-batch preparations. Consumers can conveniently use these cocktails at home without the use of any technique or experience of preparation.

Manufacturers are providing various best ready-to-drink cocktails. Beat, Bloom London Dry Gin and Bombay Sapphire are a few of the best examples of ready-to-drink cocktails. Many brands are manufacturing and launching new products into the market, expanding their growth. For instance, in April 2023, Tip Top, an Atlanta-based brand, expanded its product line by launching its new RTD canned cocktail gin martini.

Growing Popularity of Premium Drinks

The improved living standards of people are driving the demand for premium products. High social status and increased disposable income of people are making consumers invest in premium and luxury products in modern society. The growing popularity of gin cocktails and other premium drinks, with the inclusion of new flavors drives the market growth.

The use of natural ingredients in the preparation of gin products can be a positive factor for market growth. Many acquisitions and investments in gin-based companies increase the market expansion. For instance, in March 2022, Diageo India invested in handmade gin producer, Nao Spirits. This investment helps Diageo India to increase its premium gin market expansion.

Increased Health Consciousness

People prefer to lead a healthy lifestyle by habituating healthy food and beverage products. Increasing health concerns regarding the consumption of alcoholic beverages and their adverse effects on health and well-being can be a major restrain for the market. According to World Health Organization, alcohol consumption contributes to around three million deaths yearly. The increased health consciousness among people is reducing their alcohol consumption.

Centres for Disease Control and Prevention states that drinking too much alcohol can harm human health. It can result in various health issues, including high blood pressure and heart issues. According to the National Institute of Health, daily consumption of 30-50 grams of alcohol for five years can cause liver disease. If a person consumes over 40gr of alcohol per day, it can cause liver cirrhosis. The increased health awareness may result in lower alcohol consumption, thus hindering market growth.

High Cost and Rising Campaigns

Gin is more expensive than other alcoholic beverages. The use of rare and expensive ingredients in gin production can make it expensive for middle-class people. The high cost of other liquors can be a major hindering factor for the gin market as consumers may prefer cheaper choices. The various production processes involved the gin manufacturing make it expensive compared to other products.

The different regulatory problems in the production and distribution of gin and other alcoholic beverages also restrain the market growth. Various national governments impose processing regulations on alcoholic beverages and their sales due to the increasing violence and accidents due to alcohol consumption. In addition, the increase in the campaigns for alcohol reduction by WHO and other organisations negatively affects the gin market growth.

Segment Analysisn

The global gin market is segmented based on type, product, price point, production method, distribution channel, alcohol by volume, application and region.

Wide Availability

The global gin market is segmented based on type into London dry gin, old tom gin, plymouth gin and others. Among all these, London dry gins are considered to hold the largest market share. These types of gin are wide availability. They also offer a refreshing taste making it a favourite choice for consumers. London dry gins are not sweetened and possess a herbal taste. The lack of artificial tastes makes these gins stand in the market.

The juniper used for the flavouring of the base spirit makes it increases the preference of this segment. These juniper berries contain flavonoids and help in maintaining good cardiovascular health. These types of gins contain around 70% of alcohol by volume. Thus, they are preferred mostly in cocktail preparation. The fruity flavor with the citrus taste of this gin is mostly preferred by the consumers driving the segment growth.

Geographical Penetration

Increased Alcohol Consumption

The European gin market held the largest share. Europe is the place where gin originated. It is popular as the European heritage. Spain and UK have greater production of gin. The larger share of this region is due to the high production and consumption rates. There are many distilleries present in Europe in addition to the various emerging ones. According to Office for National Statistics, there were 820 distilleries for gin in UK.

The region has a westernized culture. Drinking alcohol has become more common among the adult population. The special occasions and social gatherings increased alcohol consumption. According to the 2021 WHO European health report, each year in Europe, the average alcohol consumption is 9.5 liters is pure alcohol. Further, the increased disposable income boosts this region’s market growth.

United Kingdom is famous for its high production and contains around 1722 different gins. The development of various new flavor gins in the Europe market is expected to extend into the global market. The high alcohol consumption increased the sales of alcohol and, eventually gin in Europe. For instance, according to the Wine and Spirit Trade Association, almost 80 million bottles of gin were sold in 2021.

Competitive Landscape

The major global players in the market include Southwestern Distillery, Pernod Ricard S.A., Remy Cointreau, Forest Spirits Ltd, Diageo, Bacardi Limited, William Grant & Sons Limited, San Miguel Corporation, Lucas Bols and Nolet's Gin.

COVID-19 Impact Analysis

The outbreak of the COVID-19 pandemic negatively impacted the global gin market. The strict government regulations made all the business sectors halt their production. The disruption in resource availability and labor shortage made it difficult for the manufacturers to continue their production processes. The sudden declaration of lockdowns restricted the product’s exposure to distributors and consumers.

There was also a disruption in the supply chain activities that reduced economic activity. The import and export restrictions halted production. The closure of pubs and bars decreased the demand for alcoholic beverages. The shutdown of liquor shops and specialty stores made it difficult for consumers to reach out for the products.

Alcoholic beverages have a greater demand in the celebration’s time. Gin is used greatly as a spirit for premium drinks. The lockdown regulations and social distancing dismissed all the celebrations and events, decreasing product sales. The slow reduction of the pandemic and the availability of products through e-commerce slightly opened the market sales.

Russia- Ukraine War Impact

The Russia-Ukraine war created a negative impact on the alcoholic beverage industry. The war resulted in the shutdown of the production industries at the basic level to the disrupted surroundings. The labor shortage and limited resources resulted in halted production. The interrupted processes at the industrial level badly impact product production.

Trade of various products halted and resulted in economic loss. Distribution channels were negatively affected, leading to decreased market growth. The war created import and export trade disruptions, resulting in economic disturbances. The political and economic uncertainty created due to the war had a negative impact on the gin market.

By Type
• London Dry Gin
• Old Tom Gin
• Plymouth Gin
• Others

By Product
• Flavored
• Plain

By Price Point
• Standard
• Premium
• Luxury

By Production Method
• Pot Distilled Gin
• Column Distilled Gin
• Compound Gin

By Distribution Channel
• Supermarket/Hypermarket
• Specialty Stores
• Online Channel
• HoReCa
• Others

By Alcohol by Volume
• 36-40%
• 40-45%
• 45-50%

By Application
• Commercial
• Residential

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In May 2023, Empress 1908 Indigo Gin, a Canadian distillery brand from Victoria Distillers, launched handcrafted gin Empress 1908 Elderflower Rose Gin.
• In April 2023, Barr Hill Gin, a US-based distiller, partnered with Lawson’s Finest Liquids, a local brewery, to launch its first RTD cocktail.
• In April 2022, Bacardi-owned brand, Bombay Sapphire launched a lemon-flavoured gin, Citron Presse gin. This launch helps the company to expand its products in various regions.

Why Purchase the Report?
• To visualize the global gin market segmentation based on type, product, price point, production method, distribution channel, alcohol by volume, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of gin market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global gin market report would provide approximately 93 tables, 100 figures and 189 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies