The global distilled spirits market encompasses a wide range of alcoholic beverages that are produced through distillation process including whiskey, rum, gin, vodka and others. Distilled spirits contains 35-60% alcohol content and impart unique flavor profile to cocktails and highballs. The production of distilled spirits involves fermentation of grains, fruits or vegetables followed by distillation to extract and purify alcohols from the mix. Distilled spirits serve as social lubricants and are commonly consumed during celebrations, parties and casual social gatherings. Premium and ultra-premium varieties of spirits with higher alcohol content and refined taste are gaining widespread popularity among urban households and young professionals.
The global Distilled Spirits Market is estimated to be valued at US$ 31.99 Bn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the distilled spirits market is the rising focus of manufacturers on craft and artisanal spirits. Changing consumer preferences towards unique flavors and locally brewed spirits have prompted companies to offer specialty one-of-a-kind spirits produced in limited batches. Companies are collaborating with local distilleries and partnering with mixologists to roll out innovative products made with unusual ingredients. There is also a growing demand for organic and natural distilled spirits free of artificial preservatives, colors and flavors. Major players are emphasizing on sustainability practices in production and employing green technologies to meet consumer expectations.
Threat of new entrants: New entrants in the distilled spirits market face high costs associated with production facilities, distribution networks, and marketing.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes like beer and wine.
Bargaining power of suppliers: Distillers source raw materials like grains, sugarcane from a large network of global suppliers giving them low bargaining power.
Threat of new substitutes: Substitutes like beer and wine pose moderate threat as consumer preferences can fluctuate.
Competitive rivalry: High as major players compete for market share.
The Global Distilled Spirits Market Share is expected to witness high growth.
Regional analysis: Europe is the second largest regional market supported by wide product availability and consumption tradition across countries. Asia Pacific is expected to witness fastest growth led by China, India and other developing nations. Growing spending power and experimentation with Western drinks are driving sales.
Key players operating in the distilled spirits market are NestlÃ©, Nutricia, Unilever, Bionova, BASF SE, Abbott, Arkopharma Laboratories, GSK plc., ADM (Archer Daniels Midland Company), DuPont, Kellogg’s Company, Arla Foods amba, DSM, Quantum Naturals Ltd., Adcock Ingram, Ascendis Health Limited, iNova Pharmaceuticals, Vital Health Foods, Jamjoom Pharma, Creso Pharma, and ConnOils LLC. Major players are focusing on expanding into high growth markets through strategic deals.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it