Global Vodka Market - 2022-2029

Global Vodka Market - 2022-2029

Market Overview

The global vodka market valued USD xx million in 2021 and is forecast to reach USD XX million by 2029, growing at a CAGR of XX% during the forecast period (2022-2029)

Vodka is a distilled spirit that is clear and tasteless, with no fragrance or flavor. Vodka is created from fermented cereal grains and largely consists of water and ethanol. Some well-known brands are now using potatoes to make vodka, while flavored vodkas are made with fruits, honey, and maple syrup. Vodka has a higher alcohol concentration than beer and other alcoholic beverages, with 40% by volume. The growing interest in cocktail culture among millennial consumers is driving the global vodka market.

Market Dynamics:

The rising demand for natural and authentic flavor of vodka

The growing acceptance of grain-based vodkas with delicious fruity taste is major factor driving the growth of market. Furthermore, the influence of social media and blogging sites are other factors supporting the growth of the global vodka market. Consumers are now more engaged with social networks to educate themselves about different brands and flavours of vodka. For instance, the Tito Vodka brand name is marketed as handcrafted vodka on the company's social media channel. Likewise, there are many blog posts on the internet that discuss vodka brands under different categories, such as flavored vodka and organic vodka.

Also, the vodka market is driven by rising interest in cocktail culture among customers. Consumption habits and various innovations in vodka provide huge opportunities for the global vodka market. Premium brands are coming up with different flavors of vodka, which are tasty and crispy, and they are very popular in a very short time. Brands like Smirnoff, Absolute, and Russian Standards have various flavors like coffee, chocolate, apple, orange, and peach. Due to the flavor, they have high demand. Also, growing purchasing power and high standard of living increase the demand for Vodka in the market.

Market Segmentation:

Flavoured type vodka segment held highest market revenue share of XX% in the year 2021

Flavored vodka is an alcoholic beverage produced by infusion or maceration and contains flavors like vanillin, caramel, and sugars. Vodka is available in different types of flavors, ranging from citrus and vanilla to cherry, ginger, and spicy vodkas, plus those sweet whipped cream vodkas. Some vodka brands offer a wide range of flavors, and some excel at a particular flavor. Like regular vodka, premium vodkas will produce better-tasting drinks, though some impressive budget-friendly flavored vodkas are also available. Smirnoff was the first company brand to introduce flavored vodka in high demand. Fruit vodkas are among recent popular options among the young population, which boosted the demand in the global market. The growing adoption of cucumber lime-flavored spirits is escalating the market growth in the upcoming years. The rising demand for a fuzzy mule to improve the digestion system will further enhance the sales of the flavored segment during the forecast period.

The increasing demand for vodka through online marketing is contributing to the growth of the vodka market. This growth is owing to the increased focus of retailers to adopt internet retailing to sustain business with the help of modern trade technology. Ecommerce experienced high growth in online alcohol delivery. After the Covid pandemic, there has been tremendous growth in online shopping for vodka, which drives the growth of the vodka market.

Geographical Penetration:

North America is expected to dominate the global vodka market in the year 2021

North America is the largest hub of vodka manufacturing, and to keep the high demand, new distilleries are being set up, which eventually boosts the North American market. Due to the increased demand for Heritage 176 vodka in the U.S. and Canada, market share is increasing. Rising consumption of flavored vodka such as Sun-Ripened Watermelon, Blood Orange, Bartlett Pear, and the Texas Grapefruit among the people of the U.S. drives the market. The rising trend in Canada to adopt the tangy cherry and limeade vodka flavors with a fusion of sweet citrus will fuel the industry growth. Alcoholic beverages like Pyat Ozar, Svedka, and Hlibny Dar will help the market grow in Canada. Moreover, the support by the Canada Government to improve the distribution channel of the premium white spirits is expected to boost the market growth.

Competitive Landscape:

The global vodka market is fragmented. Some of the key players of vodka include Brown-Forman, Diageo, Pernod Ricard, Belvedere, Russian Standard, and Bacardi among others. Key players are raising their vodka production by new agreement policy with other companies. For instance, in August 2020, Altia and Brown-Forman prolonged the production agreement of Finlandia Vodka. This agreement will help to increase the production of vodka until 2035. The agreement covers the production of grain spirit for Finlandia Vodka at Altia’s distillery and the production, packaging and logistics of Finlandia Vodka consumer products at Altia’s Rajamäki beverage plant, both based in Finland. Also, in August 2019 major market player of vodka Brown Forman launched new vodka named Finlandia in India. The price range of this vodka is between 1400-1600. It is available in different flavors such as cranberry, lime, classic and mango. In June 2018, Iceberg Vodka signed a Ten Year Distribution Agreement with Southern Glazer’s Wine & Spirits of Canada, a big market player in vodka. This agreement gives a new opportunity for the growing distribution channel of key vendors.

COVID-19 Impact:

Negative impact on the global vodka market

The outbreak of the covid-19 pandemic badly affected vodka market. The food and beverage companies suffered enormous losses, affecting the world economy. COVID-19 has disrupted the transportation network, and disruptions in the supply of raw materials have harmed the growth of the vodka market globally. Due to the outbreak of the COVID-19, governments across the world have strict social distancing norms. Pandemic has affected almost all the sectors of the economy. The vodka market is also affected like other markets because of disturbance in the supply chain and strict government regulations. It is expected that as the pandemic effect recovers, the demand for vodka will also increase. Consumers are purchasing vodka through online retailers, which is the major factor that drives the market's growth. During the pandemic, vodka consumption increased due to its health benefits. Many people use vodka to reduce their stress levels, which is the major factor in increased demand for the vodka market.

Why Purchase the Report?

Understand the current market scenario and viability of global vodka market over the forecast period

Visualize the composition of the global vodka market in terms of type and distribution channel to identify major players, growth potential, and market strategies

Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period

Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market

What we offer?

PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study

Excel data sheet with valuable data points of the global vodka market – Regional and Country level segmentation

Product mapping in excel for the key products of all major market players

Market share analysis covering business revenues ($) and revenue share (%) of key market players

The global vodka market report would provide an access to approximately 53 market data tables, 42 figures and 180 pages

Target Audience:

Alcoholic Beverages Manufacturers

Pharmaceutical Industry

Education & Research Institutes

Research Professionals