July 18, 2024
Distilled Spirits Market

The Distilled Spirits Market Is Estimated To Witness High Growth Owing To Rising Consumption Of Premium Spirits

The 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.

The 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:

Distilled spirits are alcoholic beverages produced by fermenting and then distilling starch-based materials like grains, fruits, or vegetables. They contain a higher concentration of alcohol compared to wine or beer. The most common types of distilled spirits include whiskey, vodka, rum, gin, and tequila. Distilled spirits are one of the oldest forms of alcoholic beverages. They are consumed for relaxing and socializing purposes globally.

Market key trends:

The distilled spirits market is witnessing high growth owing to rising consumption of premium and super premium spirits globally. Consumers are increasingly opting for craft and artisanal spirits with unique flavors and heritage. This is prompting distillers to focus on innovations and launching new premium offerings. For instance, in 2022, Diageo launched Gordon’s Sicilian Lemon flavored gin to cater to the emerging demand for specialty craft spirits. Moreover, the rising culture of premiumization is positively impacting the sales of high-end spirits in developing regions such as Asia Pacific and Latin America. Along with this, growing experimentation and interest in mixology is spurring demand for versatile spirits that can be used in cocktails. The rising young drinking population in developing countries is a major factor fueling the overall growth of the global distilled spirits market during the forecast period.

Porter’s Analysis

Threat of new entrants: The distilled spirits market has high costs of production and branding. New entrants also face challenges from existing notable brands.

Bargaining power of buyers: Buyers have moderate bargaining power as they can opt for substitute products like beer and wine. However, switching costs are relatively low.

Bargaining power of suppliers: Major suppliers include farmers, distillers and bottlers. Suppliers have moderate bargaining power as switching costs for buyers are low.

Threat of new substitutes: New substitutes like craft beer and wine pose some threat but distilled spirits have strong brand loyalty among customers.

Competitive rivalry: The market is dominated by few major players leading to competitive rivalry.

SWOT Analysis

Strength: Leading brands have strong brand recognition globally with a variety portfolio. Innovation and premiumization are driving growth.
Weakness: Health concerns around excessive drinking and regulations on marketing can impact sales. Regulations differ globally leading to compliance issues.
Opportunity: Emerging markets offer growth opportunities. Innovation including flavored spirits and ready-to-drink products are expanding customer base.
Threats: Rising input costs, tax hikes can squeeze margins. Social media campaigns against alcohol can reduce demand.

Key Takeaways

The Global Distilled Spirits Market Demand is expected to witness high growth, exhibiting CAGR of 4.8% over the forecast period, due to increasing disposable income and modern lifestyles. The market size for 2023 is US$ 31.99 Bn.

Regional analysis: North America dominates the market currently due to high consumption. Asia Pacific is the fastest growing region supported by rising middle class, urbanization and social acceptance.

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 players are focusing on premiumization through innovation and expanding to high potential markets.

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