Global Flavored Spirits Market - 2023-2030

Global Flavored Spirits Market - 2023-2030

The Global Flavored Spirits Market reached US$ 18.5 billion in 2022 and is expected to reach US$ 56.9 billion by 2030 and is expected to grow with a CAGR of 15.1% during the forecast period 2023-2030.

Flavored spirits have been infused or enhanced with various flavors to create unique taste experiences. These beverages can n encompass a wide range of spirits such as vodka, rum, whiskey, gin, tequila, and others. Flavored spirits are often created through the infusion process. This involves adding flavoring agents, such as fruits, herbs, spices, or botanicals, to a base spirit and allowing them to steep or macerate for some time. This infusion process imparts the desired flavors into the spirit.

Consumers are increasingly seeking unique, handcrafted flavored spirits produced by artisanal and craft distilleries. The growth of small-scale distilleries offering flavored spirits with locally sourced ingredients and distinct flavor profiles, catering to the demand for premium, small-batch products.

Market Dynamics

Convenience in RTD Beverages is Driving the Flavored Spirits Market

Consumers are increasingly seeking convenient and ready-to-drink options that offer simplicity and ease of consumption. For instance, the rise in popularity of canned cocktails, premixed flavored spirit beverages, and single-serve packaged drinks, which cater to consumers' desire for convenience and on-the-go enjoyment.

Busy lifestyles, limited time for preparation, and the desire for hassle-free options have contributed to the demand for convenient flavored spirits. According to off-premise data from NielsenIQ—which measures malt-based RTD beverages like hard seltzer, spirits-based RTD options, and wine-based RTD products as one large ready-to-drink category—spirits-based, ready-to-drink cocktails led growth across the $9.6-billion ready-to-drink category in both 2020 and 2021. Flavored spirit products can be enjoyed without the need for additional mixing or ingredients, allowing consumers to quickly and easily enjoy their favorite flavors in various social settings.

Innovation and New Flavours Can Show a Remarkable Opportunity

Consumers are increasingly seeking unique and novel taste experiences, driven by their desire for exploration and variety. The emergence of flavored spirits with unconventional flavors such as bacon, sriracha, or lavender-infused vodka, which cater to adventurous consumers looking for exciting and different flavor profiles.

Consumers are gravitating towards craft and artisanal flavored spirits that offer high-quality, small-batch production, and unique flavor combinations. The growth of small-scale distilleries and craft producers experimenting with new flavors, botanical blends, or unusual ingredient combinations to create distinct and innovative flavored spirits.

Ingredient Sourcing and Supply Chain Disruption are Holding Back the Flavored Spirits Market

Flavored spirits often require specific ingredients, such as botanicals, fruits, herbs, or spices, which may face challenges in terms of sourcing and availability. Disruptions in the supply of certain ingredients due to climate change, natural disasters, geopolitical factors, or fluctuations in agricultural production can impact the availability and consistency of key flavoring components, leading to constraints in production and product availability.

The flavored spirits industry relies on complex supply chains, involving multiple stakeholders, including farmers, growers, processors, and distributors, which can be susceptible to disruptions. Disruptions in transportation, logistics, or global trade, such as natural disasters, labor strikes, or political unrest, can impact the timely delivery of ingredients, packaging materials, or finished products, leading to production delays, inventory shortages, and challenges in meeting consumer demand.

COVID-19 Impact Analysis

The COVID-19 Analysis includes Pre-COVID Scenario, COVID Scenario, and Post-COVID Scenario along with Pricing Dynamics (Including pricing change during and post-pandemic comparing it with pre-COVID scenarios), Demand-Supply Spectrum (Shift in demand and supply owing to trading restrictions, lockdown, and subsequent issues), Government Initiatives (Initiatives to revive market, sector or Industry by Government Bodies) and Manufacturers Strategic Initiatives (What manufacturers did to mitigate the COVID issues will be covered here).

Segment Analysis

The global flavored spirits market is segmented based on type, flavor, distribution channel, and region.

By Flavors, the Fruits Segment is Estimated to have Significant Growth During the Forecast Period

Fruits offer a diverse range of flavors that can be infused into spirits, providing a wide variety of tasty options for consumers. Fruits such as berries (strawberries, raspberries, blueberries), citrus fruits (lemons, oranges, grapefruits), tropical fruits (pineapples, mangos, passion fruits), and stone fruits (peaches, plums, cherries) are commonly used in flavored spirits to create refreshing, fruity profiles that appeal to a broad consumer base.

Fruit-infused spirits, where the flavors of fruits are extracted and incorporated into the base spirits, have gained significant popularity among consumers. According to a study published by Pennsylvania State University, the fruit-infused wine segment experienced an increase of 5.2% for the period of September 2020 to September 2021. Flavored spirits such as fruit-infused vodkas, gins, rums, and liqueurs, where the natural essence and flavors of fruits are added during the production process, have become widely available and sought after by consumers.

Geographical Analysis

Asia Pacific is the Fastest Growing Market in the Flavored Spirits Market

The Asia Pacific region has witnessed a shift in consumer preferences towards flavored spirits, driven by evolving tastes and the desire for new and unique experiences. The growing middle class, urbanization, and exposure to international trends have contributed to increased demand for flavored spirits in countries like China, India, Japan, South Korea, and Southeast Asian nations. According to The Spirits Business magazine, APAC can host 4.5 billion people or 60% of the world’s population, the region represents one-third of alcohol consumption globally.

Urbanization and the growth of cities in the Asia Pacific region have created opportunities for on-premise establishments, such as bars, lounges, and restaurants, to flourish. The increasing number of urban dwellers and the rising preference for socializing in on-premise venues have contributed to the growth of the flavored spirits market, as these venues often feature a wide selection of spirits, including flavored options.

Competitive Landscape

The major global players in the market include Bacardi Limited, The Brown-Forman Corporation, Pernod Richard, Diageo PLC, Suntory Beverage Food Limited, Constellation Brands Inc., Ashai Group Holdings Limited, Distell Group Limited, William Grant Sons, and San Miguel Corporation.

Why Purchase the Report?
• To visualize the global flavored spirits market segmentation based on type, flavor, distribution channel, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development.
• Excel data sheet with numerous data points of flavored spirits market-level with all segments.
• The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The global Flavored Spirits market report would provide approximately 61 tables, 59 figures and 190 Pages.

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