Premium Spirits Market

Global Premium Spirits Market Size (2024 to 2029)

Global Premium Spirits Market size is expecetd to be 179.38 billion in 2024 and it is expected to grow at a CAGR of 9.56 % during the forecast period 2024 to 2029 to reach USD 283.16 billion by 2029.

Every alcoholic beverage is made by fermenting some sugary brew. This sugary brew is mixed with ethanol and carbon dioxide. The alcohol needs to be distilled or physically separated from the water this is due to yeast as it can ferment much before the alcohol level becomes toxic. This is done to obtain a high level of alcohol concentration. This is the reason the spirits are classified as distilled and the higher average ABVs. The level of concentration ranges from 20% to as high as 80% or 90% ABV. Premium spirit is the type of liquor. This is made with care and high-quality materials. These are sold by many big brands. The distillation concentrates the alcohol as it helps to separate other fermented components from water. The distilled alcoholic beverage includes liquors and spirits. The millinery population prefers these high-quality drinks. This population drives the market for alcoholic beverages.

The premiumization in the manufacturing of premium spirits creates a lucrative opportunity for the global premium spirits market. The increase in innovative marketing campaigns arranged by different vendors is anticipated to create market opportunities. Additionally, the increase in stress due to social life and peer pressure due to lifestyle changes. The increase in the adoption of modern lifestyles is also a major driving factor for upcoming years. This modern lifestyle is changing the way of livelihood for children and adults. The millinery population prefers going to clubs for parties instead of traditional activities. This resulted in creating a market opportunity. These are the factors that are creating opportunities for the market growth.

Global Premium Spirits Market Drivers:

The increasing income disposal among the population is the major driving factor in the global premium spirits market. This is due to the increasing economy in the region. Adults in wealthy societies prefer to spend their money on pricy food and drinks. They prefer drinks of higher brands, items like premium brand wines, and spirits. These drinks of higher brands are offered to guests to entertain and occasionally even to show them their standard of living. This millinery population is increasingly spending a huge amount of money on these premium spirits.The increasing concerns regarding the quality of the spirit drive the market. The premium spirits are of high quality when compared with cheaper alcohol. Premium spirits undergo very strict distillation and aging processes. The increasing population is preferring premium spirits over industrial alcohol or artificial chemicals. The manufacturing of premium spirits includes high-grade fruits and grapes to yield high-quality or superior-quality of spirits. Hence the demand for premium spirits is increasing across the world. Additionally, an increase in research and development in the industry drives market growth. These are the driving factors in the global premium spirits market.

Global Premium Spirits Market Restraints:

The increase in strict regulations and increased taxes imposed by the government restricts the growth of the global premium spirit market. The increased strict regulations lead to the high cost of retail prices for spirits. This results in a decrease in the number of sales. The increase in tax rates in emerging nations such as India hinders market growth. Additionally, the adverse effects due to the increase in the consumption of alcohol such as liver cirrhosis, alcoholic hepatitis, etc. The risk associated with alcohol consumption hinders the growth of the market. In addition, premium spirits are very costly and are not affordable to lower-income consumers. Additionally, the competitive products in the market are cheaper. These are the major restraining factors of the global premium spirits market.

REPORT COVERAGE: 

This research report on the Premium Spirits Market has been segmented and sub-segmented based on product, source, distribution channels , end-users, and region. 

Global Premium Spirits Market - By Product:  

• Whisky
• Rum
• Vodka
• Brandy
• Tequila
• Others

Among these, the whisky segment dominates the global premium spirit market. The Whisky segment is expected to dominate the market over the forecasting period. This is due to the increasing geriatric population, the elderly population prefers whisky over the rest of the premium spirits product. Additionally, the increase in purchasing power among the population also drives segmental growth. The tequila segment is expected to show the fastest CAGR growth over the forecasting period. This is due to the improved quality of tequila and increasing consumer preference for the product. The millinery population prefers cocktails because of the modern trends in the market.

Global Premium Spirits Market - By Source:

Natural

Flavored

Among these, the flavored segment dominates the global premium spirits market. The flavored segment is expected to dominate the market over the forecasting period. Flavored premium spirits are the top exporting items in emerging and developed nations. The change in consumer preference over the flavors and health-conscious people drives the segmental growth. The natural source premium spirit segment is expected to show the fastest CAGR growth over the forecasting period.

Global Premium Spirits Market - By Distribution Channels:

• Online
• Offline

Among these, the offline distribution channel segment dominates the global premium spirits market. The offline segment is expected to show its dominance over the forecasting period. This is due to an increase in supermarkets, retailers, etc across the world. In this segment, specialist retailers hold the major share of the market. Additionally, the online segment is expected to show the fastest CAGR growth over the forecasting period. This is due to an increase in the usage of e-commerce among the population.

Global Premium Spirits Market - By End-users:

• Individuals
• Commercial
• Restaurants
• Others

Among these, the Individual segment dominates the global premium spirits segment. The individual segment is expected to show its dominance over the forecasting period. This is due to manufacturers developing high-quality ingredients with fewer impurities. These premium spirits are of good quality, this is expected to drive the segmental growth. The restaurant segment is expected to show the fastest CAGR growth over the forecasting period. This is due to the increase in the consumption of premium spirits in restaurants.

Global Premium Spirits Market – By Region:

• APAC
• MEA
• Europe
• Latin America
• North America

Regionally, the North American region dominates the global premium spirits market. The North American segment is expected to show its dominance over the forecasting period. This is due to an increase in spending on premium spirits by consumers in the United States. In the United States, the increase in demand for premium products with unique flavors drives regional growth. Additionally, with the increase in the opening of restaurants and bars in the region drives the premium spirit market. Innovation in the market helps to drive the growth of the product. For instance, A New York-based company called Onda has introduced a canned spirit-based drink made of Blanco Tequila and real fruit juice that is free of gluten, sugar, and carbohydrates. In addition, these premium spirits are also consumed at home which helps to drive regional growth.

The European segment is expected to show significant growth over the forecasting period. This is due to an increase in sales of cocktails like martinis, margaritas, etc. Additionally, the increase in disposal income in the region and the consumers spending pattern over high-quality alcoholic drinks drives the European market growth.

Asia Pacific region is expected to show the fastest CAGR growth in the global premium spirits market over the forecasting period. This is due to the increase in the use of social media which leads to an increase in demand for premium lifestyles. Additionally, the increase in trends of cocktail culture in emerging countries such as India, and China, helps to drive regional growth. Consumers are choosing the quality of spirits over quantity.

KEY MARKET PLAYERS:

Key Market Players of Premium Spirits Market are Diageo Plc (U.K), Pernod Ricard (France), Tito's Handmade Vodka (U.S), Hitejinro Co., Ltd. (South Korea), Brown‑Forman (U.S), Constellation Brands, Inc. (U.S), Bacardi (Bermuda), Gruppo Campari. (Italy), Hitejinro Co., Ltd (South Korea), Heineken N.V (Netherlands), Tanduay Distillers, Inc. (Philippines), Allied Blenders and Distillers Pvt. Ltd. (India)

RECENT HAPPENINGS IN THE MARKET:

• On 15^th Sept 2022, liquor major Bacardi introduced a line of high-end cocktail mixers, its first ever on the Indian market. Under the new brand MIX'R, the company has developed the flavors Mojito and Long Island Tea, both of which come in 500ml bottles with four to five servings each.
• On 2^nd Nov 2022, Diageo bought Balcones Distilling (also known as 'Balcones'), a Texas-based artisan distiller and one of the country's top producers of American single malt whisky.