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The premium spirit market size is projected to increase by USD 49.85 billion and the market size is estimated to grow at a CAGR of 6.32% between 2022 and 2027.
The growing demand for premium drinks by the millennial generation is driving market growth. In recent years, millennials have become a notable proportion of the alcohol-consuming population, and this trend is predicted to continue during the forecast period. They are above the legal drinking age (LDA) and have decent purchasing power. Moreover, premium spirits are preferred as they are of superior quality to traditional spirits. Additionally, the growing consumer disposable income, along with increasing awareness of quality premium products are expected to further boost the growth of the market during the forecast period.
The increasing dependence on technology throughout the value chain is a key trend in the market. The integration of apps into the luxury spirits market is helping consumers to customize alcoholic beverages. Some examples of personalized drink-making apps include Distiller, Speakeasy Cocktails, Cocktail Flow, and MiniBar, which help boost alcoholic consumption. Some of the other technological advances found in this domain include infusion machines and home brewing. Moreover, some apps like Drizly, MiniBar Delivery, Saucey, Drinkfly, and Klink Delivery can be used for tracking the consumption and delivery of alcoholic beverages.
Even though the apps are mostly available in a few states in the US, their accessibility is increasing. Some apps can also give the option of personalizing based on ingredients, such as old-fashioned, Scotch, and cognac, while others, like BAC Alcohol Calculator, R-U-Buzzed, and ALCulator, can help keep track of the number of drinks the consumer had. Hence the increasing prevalence of technology in the market is likely to result in further market growth during the forecast period.
The rising launch of campaigns against alcohol consumption is challenging market growth. They largely focus on raising awareness of the negative impacts of consuming alcohol for society at large. The increasingly common trend of alcohol abuse, dependency, and alcohol-related accidents, particularly among the youth, has resulted in various stakeholders, including regulatory bodies and social organizations, launching anti-alcohol consumption campaigns.
Additionally, the government is prioritizing the issue by educating and raising awareness about the injurious impact of alcoholic beverages on people’s health. The direct linkage of alcohol consumption with liver diseases, cancer, cardiovascular problems, tuberculosis, and others was highlighted by the Live Better, Drink Less campaign launched by the Pan-American Health Organization (PAHO) in November 2021. Hence, the numerous campaigns and efforts to reduce alcohol consumption will be a hindrance to the growth of the market during the forecast period.
The vodka segment includes high-quality, luxurious spirits that have managed to distinguish themselves from other alcoholic drinks in the competitive market. They are renowned for exceptional quality, purity, and unique flavor profiles. They are made using ingredients of the highest quality and meticulous manufacturing techniques. Premium vodka is made using high-quality grains, locally grown potatoes, and often water from natural springs with their taste slightly varying from region to region. Hence the high quality and consumer preference are likely to boost the growth of this segment of the global market during the forecast period.
The market share growth by the off-trade segment will be significant during the forecast period. It includes supermarkets and hypermarkets that have sections dedicated to alcoholic beverages as well as specialty stores. They provide convenience and a greater variety of choices from many brands. Hence alcohol sales, particularly from supermarkets and hypermarkets, are expected to increase during the forecast period. Additionally, the expansion of key hypermarkets and supermarkets such as Tesco, Carrefour, and Target and the increasing number of vodka manufacturers shall further expand the demand for premium spirits.
The off-trade segment was valued at USD 68.67 billion in 2017 and continued to grow until 2021.
Growth in Internet penetration and convenience are making e-commerce a popular means of shopping mode for alcoholic beverages, especially for millennials. Quick delivery, a variety of choices, and a greater amount of information about the quantity, taste, texture, and flavor of the spirit are also advantages of this segment of the luxury spirits market. Consumer reviews help to make more informed decisions, and discounts also increase demand for the premium spirits market. Hence the above factors are likely to contribute to the growth of the global market during the forecast period.
Europe is estimated to contribute 32% to the growth of the global market during the forecast period
Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.Within the region, Eastern European countries like Russia, Romania, and Poland and Western European countries like France, Germany, the UK, and Belgium are among the largest alcohol beverage-consuming countries. Other regions of growth for the luxury spirits market include the Czech Republic, Denmark, Spain, and Switzerland. Sparkling wines are very popular in Denmark, France, Poland, and Spain. The region overall has also seen increasing consumption of alcoholic beverages. The largest consuming segment is the elderly population who prefer premium spirits like whiskey, vodka, liqueurs, and brandy. Additionally, the alcoholic beverages industry is one of the biggest businesses in the region, generating a massive number of job opportunities. However, certain factors that limit its growth in the region include awareness campaigns, stringent government regulations, and restricted advertising. These factors shall hinder the growth of the regional premium spirits market during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest market trends and growth opportunities from 2017 to 2027.
The market offers a diverse range of high-quality brands, including Chopin, Van Gogh Vodka, Belvedere, Absolut Vodka, Stolichnaya, Three Olives, Zyr Vodka, Crystal Head, and Croc. These premium spirits provide unique product insights, with an emphasis on quality and craftsmanship.
The market caters to various preferences, featuring flavored vodka options and gluten-free vodka for consumers with specific dietary considerations. In the tequila segment, brands like Crystal Head and Croc offer distinctive choices, adding to the market's richness. Consumers seeking refined and exceptional drinking experiences can explore the market, where brands prioritize quality ingredients and meticulous production processes. Whether enjoying a classic cocktail like a margarita or a vibrant tequila sunrise, these premium spirits aim to elevate the drinking experience for enthusiasts who appreciate the artistry behind each bottle.
Premium Spirit Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.32% |
Market growth 2023-2027 |
USD 49.85 billion |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
5.5 |
Regional analysis |
Europe, APAC, North America, South America, and Middle East and Africa |
Performing market contribution |
Europe at 32% |
Key countries |
US, China, UK, France, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Alliance Global Group Inc., Allied Blenders and Distillers Pvt. Ltd., Bacardi Ltd., Becle S.A.B. de C.V., Brown Forman Corp., Campari Group, Constellation Brands Inc., Diageo Plc, Fifth Generation Inc., Heineken Holding NV, Hite Jinro Co. Ltd., LVMH Moet Hennessy Louis Vuitton SE, Pernod Ricard SA, Roust, Sazerac Co. Inc., Suntory Holdings Ltd., Tanduay Distillers Inc, The Edrington Group Ltd., William Grant and Sons Ltd, and Remy Cointreau SA |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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