The global premium spirit market size was valued at USD 107.74 billion in 2020 and is expected to grow at USD 235.74 billion by 2027 at a compound annual growth rate (CAGR) of 10.3% 2020 to 2027. The growing popularity of high-end drinks among the millennial population has been fueling market growth across the world. The sales of cocktails, such as margaritas, martinis, and manhattans, have gained remarkable traction in the developed economies of North America and Europe. Furthermore, growing popularity of the cocktail culture in developing nations, such as China and India, is expected to promote the scope of premium spirits. Over the past few years, the growth of the high-end alcohol segment has been outpacing the growth of the overall segment and hence pushing the overall consumption of alcohol over the world.
In 2020, Distilled Spirits Council has reported that both the revenue and volume of spirits have been setting a record for ninth consecutive years in the U.S., which has increased the share in the global alcoholic beverage market. The growth of this segment is majorly attributed to the rising demand for diverse, innovative, and authentic high-end alcoholic beverages among the millennials. Premiumization has become a growing trend in the alcohol industry. Most of the categories in the industry are going through substantial premiumization. Particularly, tequila has been gaining traction among consumers over the years. Over the past few years, with the changing lifestyle, consumers are choosing quality over quantity.
On-trade accounted for more than 55.0% share of the global revenue in 2020. This distribution channel includes restaurants, bars, clubs, cafes, and hotels. The professionals working at the on-trade outlets, such as bartenders and waiters, play a crucial role in the sales process of the products.
Vodka held the largest revenue share of more than 25.0% in 2020. The availability of a wide range of vodka, including flavoured and gluten-free, has boosted the sales of the product across the world. Ketel One Vodka (Diageo), Tito's Vodka, Chase Vodka, Chopin, Grey Goose, Van Gogh Vodka, Belvedere, Absolut Vodka, Stolichnaya, Three Olives', Zyr Vodka, Crystal Head, and Cîroc are high-end vodka brands gaining popularity across the globe owing to their fine quality. Companies have been introducing innovative flavours to their products, including marmalade, oak-smoked, coconut, berries, citrus, vanilla, and rhubarb, to attract a wider range of consumers.
Asia Pacific held the largest volume share of over 40.0% in 2020. Rising use of social media and increasing health awareness have been fuelling the demand for superior quality spirits in the region. Consumers are seeking low alcohol content and authentic drinks.
Growing bar culture in the developing nations, including China, India, and Thailand, has been fuelling the regional market growth. Furthermore, increasing disposable income, along with economic growth, is a key factor in boosting the capacity to consume superior quality and luxury spirits in the region.
China, India, Hong Kong, Australia, New Zealand, and South Korea are the prominent markets of the region. China accounted for the largest share in the Asia Pacific market as a result of increased sales volume of high-end spirits at the domestic level. In addition, a growing middle-class population and an increasing number of urban dual-income families in India are expected to fuel the growth of the market in the nation in the near future.
Some of the prominent players in the premium spirit market include: Diageo, Pernod Ricard, TITO’S HANDMADE VODKA, HITEJINRO CO., LTD, Brown Forman Corporation, Bacardi Limited, Tanduay Distillers, Inc., Allied Blenders and Distillers Pvt. Ltd. (ABD), Guizhou Moutai Wine Co., Ltd., Alliance Global Group, Inc. (Emperador), ROUST.
In 2020, Distilled Spirits Council has reported that both the revenue and volume of spirits have been setting a record for ninth consecutive years in the U.S., which has increased the share in the global alcoholic beverage market. The growth of this segment is majorly attributed to the rising demand for diverse, innovative, and authentic high-end alcoholic beverages among the millennials. Premiumization has become a growing trend in the alcohol industry. Most of the categories in the industry are going through substantial premiumization. Particularly, tequila has been gaining traction among consumers over the years. Over the past few years, with the changing lifestyle, consumers are choosing quality over quantity.
On-trade accounted for more than 55.0% share of the global revenue in 2020. This distribution channel includes restaurants, bars, clubs, cafes, and hotels. The professionals working at the on-trade outlets, such as bartenders and waiters, play a crucial role in the sales process of the products.
Vodka held the largest revenue share of more than 25.0% in 2020. The availability of a wide range of vodka, including flavoured and gluten-free, has boosted the sales of the product across the world. Ketel One Vodka (Diageo), Tito's Vodka, Chase Vodka, Chopin, Grey Goose, Van Gogh Vodka, Belvedere, Absolut Vodka, Stolichnaya, Three Olives', Zyr Vodka, Crystal Head, and Cîroc are high-end vodka brands gaining popularity across the globe owing to their fine quality. Companies have been introducing innovative flavours to their products, including marmalade, oak-smoked, coconut, berries, citrus, vanilla, and rhubarb, to attract a wider range of consumers.
Asia Pacific held the largest volume share of over 40.0% in 2020. Rising use of social media and increasing health awareness have been fuelling the demand for superior quality spirits in the region. Consumers are seeking low alcohol content and authentic drinks.
Growing bar culture in the developing nations, including China, India, and Thailand, has been fuelling the regional market growth. Furthermore, increasing disposable income, along with economic growth, is a key factor in boosting the capacity to consume superior quality and luxury spirits in the region.
China, India, Hong Kong, Australia, New Zealand, and South Korea are the prominent markets of the region. China accounted for the largest share in the Asia Pacific market as a result of increased sales volume of high-end spirits at the domestic level. In addition, a growing middle-class population and an increasing number of urban dual-income families in India are expected to fuel the growth of the market in the nation in the near future.
Some of the prominent players in the premium spirit market include: Diageo, Pernod Ricard, TITO’S HANDMADE VODKA, HITEJINRO CO., LTD, Brown Forman Corporation, Bacardi Limited, Tanduay Distillers, Inc., Allied Blenders and Distillers Pvt. Ltd. (ABD), Guizhou Moutai Wine Co., Ltd., Alliance Global Group, Inc. (Emperador), ROUST.
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