Spirits Market- Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Spirits Market- Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Spirits market is projected to register a CAGR of 6.23% during the forecast period, 2022-2027.

One of the significant factor for the high growth of the spirits market over the forecast period is considered to be the increasing demand for premium alcoholic beverages due to increased consumer spending power. Some of the other major factors like increasing consumer base for alcohol consumption especially among youth generation, strengthened distribution network adopted by alcohol manufacturers, and adoption of western culture in the developing countries are contributing to the market growth.

Furthermore, key players are actively involving themselves in various marketing activities to create a good will among the consumers. For examples, companies are launching marketing campaigns focussed on creating awareness for responsible alcohol consumption.

Key Market TrendsGrowing Popularity of Craft Spirits

With the increasing demand for premium alcoholic beverage and consumers awareness towards taste, ingredient, quality etc., are some of the major factors that has increased the demand for craft spirits in past few years. ​ An increasing number of consumers are looking for new, more exciting offerings compared to their usual spirit options thus, pushing up the revenue generation in the craft spirits market. The craft spirits market is increasingly being benefitted by the growing number of craft spirit distilleries.

Furthermore, the craft distillers are focused in the production of innovative products using various herbs, spices, botanicals, and fruits as they obtain raw material from family farms with extensive knowledge in grain and fruit production. This, in turn, gains consumer trust and interest. The continuous launch of new and unique products is expected to boost the sales in favor of the vendors in the craft spirits market in the future.

Asia-Pacific is the Fastest Growing Region

The rising demand for ethnic premium, super-premium spirits, and flavored spirits, which include the artisanal varieties, has increased among the Asian consumers, which has fuelled the spirits market growth in the past few years. The spirits market in the Asia-Pacific region is highly diversified in terms of the consumption patterns and products, mainly due to the differences in tastes and preferences and the social and cultural behaviours across different nations.

The spirits market in the Asia-Pacific region is highly diversified in terms of the consumption patterns and products, mainly due to the differences in tastes and preferences and the social and cultural behaviours across different nations. Furthermore, increasing incidences of eating outside and clubbing, among the youngsters, have been driving the growth of the spirits market in the Asia-Pacific region. Furthermore, the increase in health awareness among people and the promoted inclusion of functional and natural ingredients provide greater opportunity for the premium alcohol market.

Competitive Landscape

Some of the leading manufacturers in the spirits market, like Pernord Richard, ThaiBev, Diageo, and Suntory, are focusing on leveraging opportunities posed by the rapidly growing market segments, in order to expand their revenue base. For instance, in 2020, Suntory announced the release of Ultra-Rare 55-Year Yamazaki Single Malt, a bottle of 50-year-old Yamazaki.

Several partnerships have also been witnessed in the spirits market, as larger players, such as Suntory Holding and Pernod Ricard, try to capitalize on the growing consumer demand for craft spirit, while allowing the acquired micro-distilleries to continue operating, often completely independent of the new parent company.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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