Alcoholic Spirits Market Size, Share, Growth, and Industry Analysis by Type (Rum, Tequila, Chinese Baijiu, Whiskey, Liqueurs, Gin, and Others) By Application (Supermarket & Specialist Store Restaurant, and Online), Regional Insights, and Forecast 2024 To 2031

Updated On: 08 July 2024

Alcoholic Spirits Market Report Overview

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The global alcoholic spirits market size was USD 446170 million in 2021 and is projected to touch USD 662477.4 million by 2031, exhibiting a CAGR of 4.0% during the forecast period.

Alcoholic spirits are made by distillation of fruits, grains, sugar, or vegetables. The drinks are also termed as hard liquor, distilled beverage, and spirit drink. The growth of alcoholic spirits market is driven by surge in disposable income, increased spending capacity, a growing young-adult demographic, an increased need for alcohol, and growing demand for premium/super premium drinks. Also, the presence of alcohol in events and parties and growing need for relaxation and enjoyment among the population are projected to drive market growth. Further, the presence of drinks in supermarkets and easy availability of products at low cost coupled with wide range of choices available in the market. These factors are anticipated to propel market growth. However, increased awareness about the health effects of alcohol and a rise in health concerns are estimated to limit market growth in the forthcoming years.

COVID-19 Impact: Closure of Wine Stores and Bars to Hamper Market Growth

The global COVID-19 pandemic has been unprecedented and staggering, with alcoholic spirits market experiencing higher-than-anticipated demand across all regions compared to pre-pandemic levels.  The rise in CAGR is attributable to alcoholic spirits market growth and demand returning to pre-pandemic levels once the pandemic is over.

The health pandemic, COVID-19 reduced market growth. Lockdown restrictions and strict government regulation, coupled with the closure of wineries and alcohol stores, impacted market growth. Stay-at-home and working from culture minimized market growth. Closure of restaurants and bars reduce market growth during the pandemic period.

LATEST TRENDS

"Increase in Number of Wineries and Brewers to Fuel Market Growth"

An increase in the number of wineries and brewers globally is expected to propel market growth. Rapid innovations and development in the manufacturing of flavored wine, vodka, cocktails, and beer. Alcoholic spirits are made from plant-derived material. The products are prepared by fermenting sugar in berries, fruits, and grains. Further, recent innovations of several mixed fruit drinks are anticipated to fuel market growth. Huge consumption of beer globally and usage of alcoholic beverages on several occasions such as weddings, anniversaries, birthdays, and concerts. These factors are predicated on fostering market growth. Today, the population consumes alcohol at social gather, ceremonies, and occasions. In addition, the presence of a wide range of alcohol and plenty of options is projected to accelerate market growth in the forthcoming years.

Alcoholic Spirits Market Segmentation

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• By Type

Based on type, the market is divided into rum, tequila, chinese baijiu, whiskey, liqueurs, gin, and others.

Rum is expected to be the top part of the segmentation type.

• By Application

Based on the application, the market is divided into supermarket & specialist store, restaurant, and online.

Supermarket & specialist store is expected to be the top part of application segmentation.

DRIVING FACTORS

"Increased Spending Capacity and Rise in Disposable Income to Fuel Market Growth"

The growth of the alcoholic spirits market is driven by a surge in disposable income, increased spending capacity, a growing young-adult demographic, an increased need for alcohol, and growing demand for premium/super premium drinks. Changing consumer preferences and the increasing population is projected to boost product demand. Several market players and increased investment to introduce new products are estimated to foster market growth. The majority of the population prefers alcohol, and the growing need for the product among today's population is predicted to fuel market growth. A recent development for alcoholic brands and honey-derived products is estimated to witness a lucrative growth opportunity in the forthcoming years. High-pressure jobs and growing demand to relax the mind and spend time with friends & family are anticipated to increase alcohol consumption.

"Growing Demand for the Product in Several Occasions and Events to Surge Market Performance"

The increased need for alcohol on several occasions, such as weddings, anniversaries, and birthday parties, is estimated to fuel market growth. The growing number of celebrations and increased need for alcoholic drinks is estimated to surge market growth. Presence of drinks in supermarkets and easy availability of products at low cost coupled with a wide range of choices available in the market. These factors are anticipated to propel market growth in the forthcoming years. Further, growing entertainment trends at lounges and clubs are predicted to fuel market growth. Several marketing and advertisement strategies are predicted to drive market growth in the forthcoming years. Increased study to improve quality and enhance flavors is estimated to fuel market growth.

RESTRAINING FACTORS

"Rise in Health Concerns Among Population to Limit Market Growth "

Increased awareness about the health effects of alcohol and the rise in health concerns are estimated to limit market growth in the forthcoming years.

Alcoholic Spirits Market Regional Insights

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"Increased Urbanization and High Spending Capacity to Drive Market Share "

Asia Pacific is predicted to dominate alcoholic spirits market share owing to increased urbanization and increased middle-class population in the region. Growing influence of social media and changing lifestyle is projected to drive market progress. Surge in disposable income, increased spending capacity, growing young-adult demographic, increased need for alcohol, growing demand for premium/super premium drinks. These factors are predicted to drive market growth.

North America is projected to hold second position due to increased number of millennials population. Rise in urban population and growing number of bars and restaurant in the region is predicted to drive market growth.

KEY INDUSTRY PLAYERS

"Leading Players Adopt New Strategies to Stay Competitive"

The report covers information about the list of market players and their latest development in the industry. The information includes mergers, partnerships, acquisitions, technological developments, and production lines. Other aspects examined for this market include complete research on companies producing and introducing the latest products, regions they conduct their operations in, automation, technology adoption, generating the most revenue, and making a difference with their products.

List of Market Players Profiled

• Diageo (U.K.)
• Remy Cointreau (France)
• Bacardi (Bermuda)
• Pernod Ricard (France)
• Suntory (Japan)
• Brown-Forman (U.S.)
• LVMH (France)
• Constellation Brands (U.S.)
• Edrington (U.K.)
• William Grant & Sons (U.K.)
• Maotai (China)
• Wuliangye (China)

REPORT COVERAGE

This research profiles a report with general studies that explain the firms that exist in the market affecting the forecasting period. With detailed studies done, it also offers a comprehensive analysis by examining the factors like segmentation, opportunities, industrial developments, trends, growth, size, share, restraints, and others. This analysis is subject to alteration if the key players and probable analysis of market dynamics change.