March 1, 2024
Distilled Spirits Market

Growing Socializing & Gatherings To Boost Growth Of The Global Distilled Spirits Market

The global Distilled Spirits Market is estimated to be valued at US$ 31.99 Bn in 2023 and is expected to exhibit a CAGR of 4.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

The distilled spirits market includes alcoholic beverages that are produced by distilling fermented alcoholic liquids such as wine or mash from cereals, fruits, or vegetables. The main types of distilled spirits are vodka, rum, gin, tequila, whiskey, and brandy. These spirits have high alcohol content ranging from 20% to 50% by volume. Distilled spirits are enjoyed globally and are often consumed directly or mixed with soda, juice or water for cocktails. They are flavorful and have certain health benefits when consumed in moderation. Their demand is driven by socialization, celebrations and occasions.

Market key trends:

One of the major trends in the distilled spirits market is the growing demand for premium and super-premium products. Consumers are increasingly opting for high-quality as well as craft distilled spirits made from sustainable and locally sourced ingredients. This has paved the way for craft distilleries and smaller producers offering a variety of unique flavors. Another key trend is the rising popularity of cocktails and RTD (ready-to-drink) cocktail premixes available in cans or bottles. convenient RTD pre-mixed cocktails allow consumers to enjoy mixed drinks anytime without much effort. Innovation of new flavors further drives their demand. Moreover, growing socializing and gatherings post pandemic have boosted on-premise consumption of distilled spirits in bars, restaurants and pubs. The market will continue flourish driven by increasing disposable incomes, experimentation and social events in many countries globally.

Porter’s Analysis

Threat of new entrants: The Global Distilled Spirits Market Size requires high initial capital investments in production facilities and infrastructure. Long-standing brand loyalty also acts as a barrier for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power in this market due to the availability of substitutes. However, customer loyalty towards premium brands gives some bargaining power to larger buyers.
Bargaining power of suppliers: A few major agribusiness firms dominate the supply of raw materials such as grains, molasses and fruits. This gives them significant power over spirit producers.
Threat of new substitutes: Alternatives like beer, wine and cannabis drinks pose a threat. However, demand for premium spirits continues to rise with the growth of high-net-worth individuals.
Competitive rivalry: Major spirit companies compete intensely in terms of brand building, product innovation, and geographical expansion.

Key Takeaways

The global distilled spirits market is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing disposable incomes and changing lifestyles and preferences.

Regional analysis:

North America currently dominates the market, followed by Europe and Asia Pacific. The Asia Pacific region is expected to witness the fastest growth due to rising spending power, westernization and increase in social drinking culture in countries like China and India.

Key players analysis: Key players operating in the distilled spirits market are Diageo plc, Pernod-Ricard SA, Constellation Brands Inc., Brown-Forman Corporation, Remy Cointreau SA, Marie Brizard Wine & Spirits, Lapostolle SA, and Berentzen-Gruppe AG. Major companies are focusing on product innovation and expansion in emerging markets through strategic mergers and acquisitions.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it