San Francisco, 03 April 2024: The Report Premium Spirit Market Size, Share & Trends Analysis Report By Product (Vodka, Whiskey, Gin, Tequila, Rum, Brandy), By Distribution Channel (On-trade, Off-trade), By Region, And Segment Forecasts, 2020 - 2027

The global premium spirit market size is expected to reach USD 235.74 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 10.3% from 2020 to 2027. Rising demand for better tasting and good quality alcoholic beverages among millennial consumers has been fueling market growth across the world. Furthermore, the growing association of high-end spirits, such as scotch and bourbon whiskey, with lifestyle, along with the launch of innovative products, has been expanding the premium spirits industry scope.

Vodka dominated the market with more than 25.0% share in 2020 in terms of revenue. Authentic and flavored vodkas have gained traction among the consumers owing to the growing cocktail culture. For instance, in October 2018, CÎROC, a vodka brand of Diageo, launched its CÎROC Black Raspberry. This vodka is made with grapes with a unique blend of black raspberry, which offers a citrus flavor and a smooth finish. Introducing innovative flavors is a strength of the CÎROC brand.

The tequila segment is expected to witness the fastest growth over the forecast period. With the improving quality, consumers' interest in tequila has been rising, along with its price. The 100% blue agave tequila category has been gaining traction among the consumers and boosting the segment growth. In September 2020, Cincoro Tequila launched one of the finest quality tequilas made with 100% Weber Blue Agave.

As of 2020, Asia Pacific held the largest volume share of more than 40.0%. The growth of the market is majorly attributed to the growing middle-class population and the increasing adoption of alcoholic beverages in the emerging economies of the region. China, India, Australia, and South Korea are key markets of the region where the products have been gaining popularity over the years.

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.

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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.

Premium Spirit Market Report Highlights

• The off-trade distribution channel is expected to register the fastest CAGR of 10.4% from 2020 to 2027 in terms of revenue. The provision of promotional prices and the emergence of e-commerce has been fueling the growth of this distribution channel
• The vodka product category dominated the market by accounting for over 25.0% share of the global revenue in 2020. Increased launch of flavored products has boosted the adoption of the product across the world
• The on-trade distribution channel held the largest share of more than 55.0% in 2020 in terms of revenue. These channels are expected to gain popularity as a result of the increasing interest of millennials in spending their weekends in restaurants and bars.

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.

Like the food industry, consumers of the beverage industry are also seeking clarity and sustainable manufacturing practices. This trend has been widening the opportunities for the firms to offer products at premium price points. Furthermore, health-conscious consumers are increasingly shifting towards low-alcohol or no-alcohol beverages from traditional alcoholic beverages, which may hamper the growth of the market in the upcoming years.

In recent years, millennials made up a sizable portion of alcohol consumers, and it is projected to continue over the forecast period. The generation has a sizable amount of purchasing power and is over the legal drinking age (LDA). In addition, premium spirits are made from natural ingredients and are of better quality than regular liquor. These factors are expected to drive the market forward over the forecast period.

Premium Spirit Market Report Scope

The premium spirits market is primarily driven by an increase in disposable income. Customers with high disposable income have access to the best quality spirits. Customers are paying more for high-quality, premium products because they are becoming more conscious of their drinking habits. In addition, the increasing trend of visiting pubs and bars among the youth is expected to drive the market forward.

However, rising government regulations on alcohol, rising health consciousness among consumers, and increasing shifts in consumer preferences toward low or no-alcohol drinks over traditional alcoholic ones, are the main factors acting as restraints and are expected to hinder the market growth.

List of Key Players of Premium Spirit Market

• Diageo
• Pernod Ricard
• TITO’S HANDMADE VODKA
• HITEJINRO CO., LTD
• Bacardi Limited
• Tanduay Distillers, Inc.
• Allied Blenders and Distillers Pvt. Ltd. (ABD)
• Guizhou Moutai Wine Co., Ltd.
• Alliance Global Group, Inc. (Emperador)
• ROUST
• Brown Forman Corporation