Premium Spirits Market Size, Share & Trends Analysis Report By Product Type (Vodka, Whiskey, Gin, Tequila, Rum, Brandy), By Distribution Channel (On-trade, Off-trade), By Region, And Segment Forecasts, 2024 - 2030

Premium Spirits Market Size, Share & Trends Analysis Report By Product Type (Vodka, Whiskey, Gin, Tequila, Rum, Brandy), By Distribution Channel (On-trade, Off-trade), By Region, And Segment Forecasts, 2024 - 2030

Premium Spirits Market Growth & Trends

The global premium spirits market size is expected to reach USD 408.77 billion in 2030, growing at a CAGR of 9.7% from 2024 to 2030, according to a new report by Grand View Research, Inc. The market has experienced robust growth, driven by consumers' increasing demand for differentiated and high-quality beverage products, even amidst economic challenges. High-income consumers have shown resilience against inflation and recessionary pressures, contributing to this trend.

Notably, in 2022, 33% of Americans spent USD 50 or more on a bottle of alcohol, up from 24% in 2021, according to beveragedaily.com. The spirits segment has benefited from premiumization, with sales growing at about 5.1% year-over-year. More than 60% of the spirits revenue came from high-end and super-premium spirits. The growing popularity of celebrity-endorsed products and reputable brands has also fostered strong customer loyalty. In contrast, while the overall domestic beer market saw a 1.2% decline in sales in 2022, the super-premium beer category experienced a 5% increase, according to the 2023 Beer Report published by Beverage Industry.

In addition to the trend of premiumization, the growth of the premium spirits market is also supported by evolving consumer preferences for unique and artisanal products. There is a growing appreciation for craftsmanship and quality, with consumers increasingly seeking out small-batch and craft spirits that offer distinctive flavors and unique production methods. This trend is particularly evident among millennials and Gen Z consumers, who value authenticity and are willing to pay a premium for products that offer a rich narrative or cultural heritage.

Globally, there are approximately 1.8 billion millennials, constituting 23% of the world's population. In the U.S., they account for around 32% of total craft spirits consumption. However, preferences may vary among different age groups, with Gen Z showing less interest in alcohol due to aging and increased health concerns. Younger millennials, who have recently reached the LDA, appear to be the most lucrative consumer segment. They generate a sizeable demand for innovative and premium beverages.

Premium Spirits Market Report Highlights

• Based on product, the premium tequila market is projected to grow at a CAGR of 12.4% from 2024 to 2030, owing to the increasing interest in tequila-based cocktails, with mixologists experimenting with flavors and infusions to create inventive drink offerings.
• The sales of premium spirits through off-trade channels are expected to grow at a CAGR of 10.9% from 2024 to 2030. The convenience of purchasing spirits from retail channels that offer extensive product listings, competitive pricing, and personalized shopping experiences has made the off-trade channel increasingly popular, especially among millennials and younger demographics who value both quality and convenience.
• The Asia Pacific market for premium spirits is expected to grow at 10.9% from 2024 to 2030. The demand for premium spirits in the Asia Pacific region is experiencing significant growth, propelled by strategic marketing from major brands like Pernod Ricard and Diageo.
• The Europe premium spirit market is anticipated to grow at 9.5% from 2024 to 2030. The rapid rise in demand for premium quality spirits because of altering cultural views among the region's young and affluent population is a primary driver of the spirits market's expansion in the region.

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