Liqueur Market

Global Liqueur Market Size (2024 to 2029)

Liqueur Market share value in 2022 was 137.33 billion, and it is expected to grow at a CAGR of 4.10% during the forecast period 2023-2028 to reach USD 174.77 billion by 2028.

The Liqueur is a flavored, sweetened distilled spirits. The liqueur is made from the word liquefacere, which means ‘to make liquid.’ The alcohol by volume of liqueur ranges from 24 to 60 percent. This is made by spirits base such as brandy. The spirit base is mixed with the fruit or herbs. This is followed by the addition of sweeteners such as sugar syrup. The sweeteners added to the liqueurs compose more than 2.5 percent of the total beverage by volume, hence sweet in flavor. Most liqueurs are not aged, but some are. The ingredients in the liqueur promote digestion. These drinks are popular for after-dinner drinks. These liqueurs may be served straight or over ice. There are various varieties of combination, which includes liquors, brandies, and cream. These drinks are also used as flavoring agents in desserts such as fruit, herbs, and oils. Some liqueurs are also bitter. There are various flavors available in the market, such as coffee and fruits like blueberry, passionfruit, apricot, etc.

The increase in innovation in the beverage industry is one of the major driving factors to the liqueur market growth. These beverages are not only basic refreshments but are also used as mood enhancers. The desire to fulfill the satisfaction of sweet taste buds leads to an increase in demand for the liqueur across the globe. For instance, Baileys invented Baileys XC, a premium liqueur that combines cognac and cream with exquisite spirits. The increase in popularity of consumers towards the liqueur is increasing the demand for liqueur across the world. The increase in busy lifestyles increases the demand for the liqueur market. The increase in popularity of CSD and ready-to-drink (RTD) beverages increases the demand for liqueur. The increase in consumer reliance on these beverages boosts the market growth. The increase in purchasing capacity and demand for liqueur products is fueling the market growth. Additionally, the rise and trend of luxury liqueurs boost the market growth.

The increase in disposal income fuels the liqueur market growth. This increases the demand for liqueur across the globe. Additionally, the urban population is adapting to the busy and sedentary lifestyle, increasing the demand for liqueur. The increase in the launching of new liqueurs with various flavors increases the demand for liqueurs. Additionally, many beverage manufacturing companies are entering into liqueur manufacturing, increasing the demand for liqueur. For instance, In July 2019, Coca-Cola (Japan) Co declared that it was getting ready to join the market for alcoholic beverages. The business debuted a canned spirit-based product in the Kyushu area in May 2018. These are the factors that are driving the liqueur market growth.

The increase in consumption of liqueurs on any occasion across the globe is creating opportunities for the liqueur market growth over the projected period. Various liqueurs are made from whiskey, and rum is projected to increase the opportunities in the market. The increase in visits to restaurants, pubs, bars, etc., is increasing the demand for the liqueurs over the forecasting period. These pubs serve various types of liqueurs and cocktails. This is due to an increase in urbanization across the globe. Urbanization is promoting the millennial generation to visit clubs, etc. The increase in the launch of new flavored liqueurs in the market. The increase in adoption of alcoholic beverages at social events increases the demand for liqueurs. Additionally, the increase in demand from the nations with cold environments increases the demand for the liqueurs market. 

Global Liqueur Market Restraints:

The increase in the prevalence of alcohol-based diseases, such as alcoholic hepatitis, liver cirrhosis, etc., is one of the major factors restraining the liqueur market growth. This is due to the overconsumption of alcohol. The overconsumption of alcohol lead to affects the individual very adversely. The increase in awareness about these diseases and overconsumption of alcohol decreased the demand for the liqueur market across the globe. Additionally, the strict rules and regulations associated with the manufacturing of liqueur hinder the liqueur market growth. In addition, the increase in taxation on the liqueur decreases the demand for liqueur. This taxation increases the final price of the liqueurs. Hence, it is not affordable to lower-income or middle-income category consumers. This results in decreasing the demand for the liqueurs. Many governments around the globe are applying increased tax rates on alcoholic beverages. These are the factors that are restraining the liqueur market growth.

Impact of COVID-19 on the Liqueur Market:

The impact of COVID-19 on the liqueur market was very adverse due to the imposition of lockdowns and travel restrictions during the pandemic. The lockdown led to the closure of all shops. The closure of restaurants, pubs, bars, etc., resulted in a decrease in demand for liqueur-based products and liqueur also. The major restraining factor to the liqueur market during the pandemic was the ban on exports and imports throughout the countries. This was done to prevent the spread of the coronavirus. These bans on exports and imports were imposed on both emerging and developed countries. The travel ban led to disruption in supply chain management. The increase in health awareness during the pandemic decreased the demand for liqueurs as consumers were focusing on boosting the immune system during the pandemic. However, after the initial phase, as the vaccination drive increased, the lockdown left. The increase in online sales in the market boosted the market growth slightly. These are the factors that impacted the growth of the liqueur market.

REPORT COVERAGE: 

This research report on the global ultra pasteurized cream market has been segmented and sub-segmented based on type, source, application, and region. 

Global Liqueur Market - By Type:

• Fruit Flavored
• Neutrals/Bitters
• Creams
• Others

Among these, the Fruit flavored segment dominates the liqueur market share due to the rise in the trend of flavored liqueurs like orange. Additionally, an increase in the use of these liqueurs in the tequila cocktails is ascribed to bolster the market value. The rise in demand for innovative fruit-based liqueur cocktails with various flavors, such as plums, cherries, melons, and apples, is further fuelling the segment’s growth. The increase in knowledge regarding the health benefits associated with the fruit liqueur increases segmental growth. The neutrals/bitters segment is expected to show the fastest CAGR growth over the forecasting period.

Global Liqueur Market  - By Packaging:

• Glass
• Metal Can
• PET Bottle
• Others

Among these, the glass segment dominates the liqueur market as glasses are more reliable, sustainable, and premium liqueurs. These packaging materials are durable, non-porous, and impermeable to oxygen. The glasses are also heat tolerant, hence making the best packing material. The glasses preserve and present the liqueur Flavors exactly as intended. Hence, most consumers prefer alcoholic beverages in glass bottles. The PET bottle segment is deemed to have the fastest growth rate during the foreseen period. 

Global Liqueur Market  - By Distribution Channel:

• Supermarkets/hypermarkets
• Retailers
• Convenience Stores
• On-Premises

Among these, the Supermarkets/hypermarkets segment dominates the liqueur market. The rise in demand for Bailey’s original Irish cream liqueur from emerging countries like the United States and China boosts the segmental growth. These supermarkets/hypermarkets include grocery stores, as well as pubs, bars, and restaurants, increasing segmental growth. The retailer's segment is expected to show the fastest CAGR growth in the liqueur market over the forecasting period.

Global Liqueur Market – By Region:

• Asia Pacific
• Europe
• Middle East and Africa
• North America
• Latin America

Regionally, the North American region dominates the Liqueur Market. The North American region is expected to show dominance in the Liqueur market over the forecasting period. This is due to an increase in urbanization, which is leading to an increase in demand for liqueur market. Additionally, the increase in the millennial generation visiting restaurants and pubs fuels the market growth rate in the US and Canada. The launch of various liqueur flavors boosts the demand, leading to regional growth. The United States holds the major share in the North American region in the liqueur market owing to an increase in demand for high-quality beverages from the youth. 

The European region is expected to show significant growth in the liqueur market over the forecasting period. This is due to the presence of many key market players manufacturing various liqueurs. Additionally, the legal drinking age across the European region is 18 years; hence, increasing the demand for consumption of liqueur increases the demand for various liqueurs. Additionally, well-developed breweries in this region fuel segmental growth. The Asia Pacific region is expected to show the fastest CAGR growth in the liqueur market over the forecasting period. This is due to an increase in consumer base in emerging countries such as India, China, etc. The increase in disposal income across the region boosts the liqueur market growth.

KEY MARKET PLAYERS:

Key market players of Global Liqueur Market are Bacardi Limited, Beam Suntory Inc, Brown-Forman Corporation, Diageo Plc, Davide Campari-Milano S.p.A., GirolamoLuxardoS.p., Lucas Bols B.V., Mast-Jägermeister SE, PernodRicard SA, Remy Cointreau

RECENT HAPPENINGS IN THE INDUSTRY :

In November 2022, PepsiCo sees greater opportunities in alcohol. PepsiCo, Inc.’s partnership with the Boston Beer Co. to develop Hard Mtn Dew may be the tip of the iceberg for the company.