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Global Spirits Market Briefing 2023 Including - Whiskey Vodka Rum Gin Tequila
Global Spirits Market Briefing 2023 Including - Whiskey Vodka Rum Gin Tequila
Briefing 2023
February 2023
Table of Contents
Spirits Market Characteristics ......................................................................................................... 4
Spirits Market Trends And Strategies .............................................................................................. 6
Ready-To-Mix Hybrid Beverages ................................................................................................. 6
Rise Of Alcohol Ecommerce Market ............................................................................................ 6
Rise In Ready-Mixed Cocktails ..................................................................................................... 7
Spirits Market Historic Growth ........................................................................................................ 8
Drivers Of The Market................................................................................................................. 9
Restraints On The Market ........................................................................................................... 9
Spirits Market Forecast Growth .................................................................................................... 10
Drivers Of The Market............................................................................................................... 11
Restraints On The Market ......................................................................................................... 11
Spirits Market Segmentation ........................................................................................................ 13
Global Spirits Market, Split By Segment, 2022, $ Billion ............................................................. 13
Global Spirits Market, Historic And Forecast, Split By Segment, 2017-2027 ................................ 15
Spirits Market Geography Regional Comparison ............................................................................17
Global Spirits Market, Split By Region, 2022, $ Billion .................................................................17
Global Spirits Market, Historic And Forecast Growth Rate, Split By Region, 2017-2027 ............... 19
Appendix...................................................................................................................................... 21
Market Data Sources ................................................................................................................ 21
NAICS Definition Of The Industry Covered In This Report .......................................................... 22
Global Outlook Assumptions ..................................................................................................... 22
Research Methodology ............................................................................................................. 23
Abbreviations ........................................................................................................................... 24
Currencies ................................................................................................................................ 24
Research Inquiries ..................................................................................................................... 24
The Business Research Company .............................................................................................. 24
Copyright And Disclaimer ......................................................................................................... 24
List Of Figures
Figure 1: Global Spirits Market, Historic Market Size, 2017-2022, $ Billion ........................................ 8
Figure 2: Global Spirits Market, Forecast Market Size, 2022-2027, $ Billion .................................... 10
Figure 3: Global Spirits Market, Split By Segment, 2022, $ Billion ................................................... 13
Figure 4: Global Spirits Market, Historic And Forecast, Split By Segment, 2017-2027 ...................... 15
Figure 5: Global Spirits Market, Split By Region, 2022, $ Billion .......................................................17
Figure 6: Global Spirits Market, Historic And Forecast Growth Rate, Split By Region, 2017-2027 ..... 19
List Of Tables
Table 1: Global Spirits Market, Historic Market Size, 2017-2022, $ Billion ......................................... 8
Table 2: Global Spirits Market, Forecast Market Size, 2022-2027, $ Billion...................................... 10
Table 3: Global Spirits Market, Split By Segment, 2022, $ Billion .................................................... 14
Table 4: Global Spirits Market, Historic And Forecast, Split By Segment, 2017-2027 ....................... 16
Table 5: Global Spirits Market, Split By Region, 2022, $ Billion ....................................................... 18
Table 6: Global Spirits Market, Historic And Forecast Growth Rate, Split By Region, 2017-2027 ...... 20
Table 7: Spirits Market Data Sources ............................................................................................. 21
The spirits market consists of sales of irish whiskey, american whiskey, canadian whiskey, scotch whiskey,
flavored vodka, non-flavored vodka, light rum, dark rum, golden rum, spiced rum, black rum, reposado tequila,
blanco tequila, anejo tequila, old tom gin, london dry gin, plymouth gin, fruit spirits, honey spirits, ouzo, and
other spirits. The companies in the distilleries industry process raw materials into potable liquors, ethyl alcohol,
grain alcohol and spirits, package and distribute them through various distribution channels to both on-trade
and off-trade establishments. Values in this market are ‘factory gate’ values, that is the value of goods sold by
the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers,
wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes
related services sold by the creators of the goods.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the
specified market and geography through sales, grants, or donations in terms of currency (in USD ($) unless
otherwise specified).
The revenues for a specified geography are consumption values – that is, they are revenues generated by
organizations in the specified geography within the specified market, irrespective of where they are produced.
It does not include revenues from resales either further along the supply chain or as part of other products.
The spirits market is segmented into whiskey, vodka, rum, tequila, gin and other spirits.
Whiskey
Whiskey is a distilled alcoholic beverage from a fermented mash of grain, such as barley, rye, or corn,
and contains 43-50% alcohol. The whiskey market consists of sales of irish whiskey, american whiskey,
canadian whiskey, scotch whiskey, and other whiskey. The companies in the distilleries industry
process raw materials into whiskey, package and distribute them through various distribution channels
to both on-trade and off-trade establishments. Values in this market are ‘factory gate’ values, that is
the value of goods sold by the manufacturers or creators of the goods, whether to other entities
(including downstream manufacturers, wholesalers, distributors and retailers) or directly to end
customers. The value of goods in this market includes related services sold by the creators of the goods.
The whiskey market is segmented into single malt and other whiskey.
Vodka
Vodka is a clear distilled alcoholic beverage based on starch-rich grains such as rye, maize wheat, or
potatoes. The vodka market consists of sales of flavored vodka and non-flavored vodka. The
companies in the distilleries industry process raw materials into vodka, package and distribute them
through various distribution channels to both on-trade and off-trade establishments. Values in this
market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the
goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and
retailers) or directly to end customers. The value of goods in this market includes related services sold
by the creators of the goods.
Rum
Rum is an alcoholic beverage made by fermenting and then distilling sugarcane molasses or sugarcane
juice. The rum market consists of sales of light rum, dark rum, golden rum, spiced rum, black rum, and
other rum. The companies in the distilleries industry process raw materials into rum, package and
distribute them through various distribution channels to both on-trade and off-trade establishments.
Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or
creators of the goods, whether to other entities (including downstream manufacturers, wholesalers,
distributors and retailers) or directly to end customers. The value of goods in this market includes
related services sold by the creators of the goods. The rum market is segmented into white rum and
black rum.
Tequila
Tequila is a mexican alcoholic beverage that is made from the fermented juice of the blue agave plant
that has been subjected to two separate distillations. The tequila market consists of sales of reposado
tequila, blanco tequila, anejo tequila, and other tequila. The companies in the distilleries industry
process raw materials into tequila, package and distribute them through various distribution channels
to both on-trade and off-trade establishments. Values in this market are ‘factory gate’ values, that is
the value of goods sold by the manufacturers or creators of the goods, whether to other entities
(including downstream manufacturers, wholesalers, distributors and retailers) or directly to end
customers. The value of goods in this market includes related services sold by the creators of the goods.
Gin
Gin is a distilled alcoholic beverage that derives its flavor from juniper berries which are triple distilled
in traditional copper stills. The gin market consists of sales of old tom gin, london dry gin, plymouth
gin, and other gin. The companies in the distilleries industry process raw materials into gin, package
and distribute them through various distribution channels to both on-trade and off-trade
establishments. Values in this market are ‘factory gate’ values, that is the value of goods sold by the
manufacturers or creators of the goods, whether to other entities (including downstream
manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods
in this market includes related services sold by the creators of the goods.
Other Spirits
Spirits are distilled alcoholic beverages made from a grain- or fruit/vegetable-derived sugar that’s
fermented and distilled. The other spirits market consists of sales of fruit spirits, honey spirits, ouzo,
and other spirits. The companies in the distilleries industry process raw materials into spirits, package
and distribute them through various distribution channels to both on-trade and off-trade
establishments. Values in this market are ‘factory gate’ values, that is the value of goods sold by the
manufacturers or creators of the goods, whether to other entities (including downstream
manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods
in this market includes related services sold by the creators of the goods.
Spirits manufacturers should consider experimenting with different production methods and ingredients to offer
new ready-to-mix hybrid beverages to enhance customer experience
Alcoholic beverage manufacturers should consider collaborating with e-commerce platforms to increase sales.
Alcoholic beverage manufacturing companies should consider offering ready-mixed cocktail drinks to provide a
convenient and enhanced drinking experience to consumers.
The chart and table below show the year-on-year growth of the global spirits market during 2017-2022.
The global spirits market grew from $112.59 billion in 2017 to $143.53 billion in 2022 at a compound annual
growth rate (CAGR) of 4.98%.
Talent Crunch–High competition for workers and a lack of suitably trained employees contributed to a
shortage of labor in the spirits manufacturing (distilleries) industry in this period, restraining its development.
For example, according to a 2017 survey by Association of Labor Providers (ALP), around 70% of companies in
the food and beverage manufacturing industry were struggling due to a shortage of skilled workforce. This
limited the growth of the spirits manufacturing (distilleries) market during the historic period. xiv
Changing Regulatory Environment–Rising concerns about consumer health, sustainability and social issues
have encouraged governments to regulate different products in spirits manufacturing (distilleries) industry.
These changes in regulation mostly affected tobacco and alcoholic drinks categories. For instance, the
Australian government removed all branding from tobacco packs. Other examples include restrictions on the
late-night sale of alcohol and bans on consumption at various public places by the Russian government and
Thailand’s government plans to implement graphic health warnings on alcoholic beverages. These factors
limited the growth of the spirits manufacturing (distilleries) market during the historic periodxv
The global spirits market is expected to grow from $143.53 billion in 2022 to $193.06 billion in 2027 at a CAGR
of 6.11%.
Demand For Ready To Drink Beverages – Increasing demand for ready-to-drink (RTD) beverages is expected
to drive the alcoholic-beverages market in the forecast period. RTD is a single-use packaged beverage that is
ready for immediate consumption at the time of purchase. RTD drinks are gaining popularity among working
adults due to their clean label and functionality. Introduction of new flavors of in the range of RTD alcoholic
beverages, ease of carrying, and convenience are expected to boost the demand for RTD spirits. Increasing
demand for RTD beverages, including RTD alcoholic beverages, spirits is expected to drive spirits
manufacturing (distilleries) market going forwardxvii. For instance, probiotic beverages is expected to generate
over $77 billion in sales by 2025.xviii
Faster Economic Growth – The spirits manufacturing (distilleries) market growth is aided by stable economic
growth forecasted in many developed and developing countries. The International Monetary Fund (IMF)
predicts that the global GDP growth will be 5.9% in 2021 and 4.4% in 2022. Recovering commodity prices, after
a significant decline in the historic period is further expected to aid the market growth. Developed economies
are also expected to register stable growth during the forecast period. Additionally, emerging markets are
expected to continue to grow slightly faster than the developed markets in the forecast period. Stable
economic growth is expected to increase investments in the end user markets, thereby driving the market
during forecast period. xix
Rising Awareness On Effects of Excessive Alcoholic Beverages Consumption – Rising awareness about high
alcohol and spirits consumption and addictive nature of alcoholic beverages is expected to restrain the spirits
market in the forecasted period. Excessive consumption of alcoholic beverages may lead to digestive issues
such acidity, rapid heart rat, muscle breakdown, high blood pressure, and anxiety. Increasing awareness on
adverse effects of excessive consumption of alcohol, especially among health-conscious millennial, is expected
to limit the growth of the spirits manufacturing (distilleries) market in the forecast period. xxii
Russian-Ukrainian War - The Russia-Ukraine war is expected to hinder the growth of the spirits market during
the forecast period. The political turmoil between the two nations has led to material shortage and supply
disruptions of various products and services. Russia and Ukraine are key producers of major agricultural
commodities, minerals and other essentials. The ongoing conflict between the two countries is causing anxiety
among traders and manufacturers due to fear of continued shortage of products and services, thus impacting
the spirits market growth in the forecast period.
Whiskey was the largest segment in the spirits market at 42.88% of the market worth about $61.55 billion.
Vodka was the second largest segment in the spirits market at 29.00% of the market worth about $41.62 billion.
Other Spirits was the smallest segment in the spirits market at 1.72% of the market worth about $2.47 billion.
Figure 4: Global Spirits Market, Historic And Forecast, Split By Segment, 2017-
2027
Table 4: Global Spirits Market, Historic And Forecast, Split By Segment, 2017-2027
Segment Historic CAGR (2017 - 2022) Forecast CAGR (2022 - 2027)
Tequila had the highest CAGR of 7.45% during 2017-2022; this segment is expected to grow at a CAGR of
10.79% during 2022-2027.
Vodka had the second highest CAGR of 6.09% during 2017-2022; this segment is expected to grow at a CAGR
of 6.87% during 2022-2027.
Whiskey had the smallest CAGR of 3.88% during 2017-2022; this segment is expected to grow at a CAGR of
4.81% during 2022-2027.
Asia Pacific was the largest region in the spirits market in 2022, accounting for $79.38 billion or 55.31% of the
global spirits market.
North America was the second largest region in the spirits market in 2022, accounting for $33.51 billion or
23.35% of the global spirits market.
Middle East was the smallest region accounting for $1.56 billion.
Global Spirits Market, Historic And Forecast Growth Rate, Split By Region, 2017-2027
The chart and table below show the spirits market historic and forecast growth rates by region during 2017-
2027.
Figure 6: Global Spirits Market, Historic And Forecast Growth Rate, Split By
Region, 2017-2027
Table 6: Global Spirits Market, Historic And Forecast Growth Rate, Split By
Region, 2017-2027
Region Historic CAGR (2017 - 2022) Forecast CAGR (2022 - 2027)
Africa had the highest CAGR of 8.24% during 2017-2022; this region is expected to grow at a CAGR of 5.97%
during 2022-2027.
North America had the second highest CAGR of 7.28% during 2017-2022; this region is expected to grow at a
CAGR of 8.12% during 2022-2027.
South America had the lowest CAGR of 2.61% during 2017 - 2022; this region is expected to grow at a CAGR of
3.09% during 2022 - 2027.
Appendix
Market Data Sources
Table 7: Spirits Market Data Sources
Source URL
The spirits market consists of sales of irish whiskey, american whiskey, canadian whiskey, scotch whiskey,
flavored vodka, non-flavored vodka, light rum, dark rum, golden rum, spiced rum, black rum, reposado tequila,
blanco tequila, anejo tequila, old tom gin, london dry gin, plymouth gin, fruit spirits, honey spirits, ouzo, and
other spirits. The companies in the distilleries industry process raw materials into potable liquors, ethyl alcohol,
grain alcohol and spirits, package and distribute them through various distribution channels to both on-trade
and off-trade establishments. Values in this market are ‘factory gate’ values, that is the value of goods sold by
the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers,
wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes
related services sold by the creators of the goods. The spirits market is segmented into whiskey; vodka; rum;
tequila; gin and other spirits.
The market value is defined as the revenues that enterprises gain from goods and/or services sold within the
specified market and geography through sales, grants, or donations in terms of currency (in USD ($) unless
otherwise specified).
The revenues for a specified geography are consumption values – that is, they are revenues generated by
organizations in the specified geography within the specified market, irrespective of where they are produced.
It does not include revenues from resales either further along the supply chain or as part of other products.
Note on COVID-19: The effect of the coronavirus pandemic has led to forecasts in many markets being altered
away from long term historic trends based on the impact of COVID on specific markets and geographies.
Historic trend data continues to be used to forecast the longer-term development of these markets.
Research Methodology
The Business Research Company’s reports are based on the methodology below.
Data
Our datasets are created using a wide range of proprietary and public sources including leading government
bodies, associations, trade journals, market intelligence reports and trade magazines. Data is modelled based
on hard data, extrapolation, regression analysis based on known macro data inputs, interpolation between
hard figures, comparisons with other geographies and markets, price estimations, and qualitative inputs. Data
is triangulated within our unique market data model covering an exhaustive list of 200+ markets across 12
countries and 5 regions. Comparable data is used for sanity check and trend analysis. For example our global
market value data is compared to unit sales and price data for the relevant market as well as relevant macro-
economic datasets in order to establish validity.
Market Numbers-
Market value is defined as the revenues earned by organizations for products and services within the specified
market. The break down by geography is revenue generated within the specific industry by organizations in
the specified geography, irrespective of where they are produced.
The competitor market share data is intended to represent the companies that gain the most revenues from
the given market and the percentage share of the market that they hold. If a company derives most of its
revenues from the market, its revenues are given in full. If a large part of the company's revenues come from
other markets, only the division of the company which operates in this market is included. Where accurate
information is not available on the revenues a company generates from the market its market share is not
included, however a profile of the company may still be included if it is a significant competitor in the market.
Analysis
Analysis is drawn from our Consultants’ wide range of industry and research experience as well as public and
proprietary sources. Consultants are trained in research techniques and ethics by the Market Research Society.
Every year The Business Research Company carries out thousands of interviews with senior executives and
industry experts across hundreds of markets. Through these interviews we develop our internal understanding
of markets and geographies and cross reference our understanding of global markets with expert feedback
utilizing ‘Delphic’ research methodologies.
Referencing
The Business Research Company prides itself on the quality and validity of its data and analysis. Our unique
‘end noted’ referencing approach allows the user to trace our market numbers and analysis back to the specific
data sources they were derived from.
All currency conversions are done on the basis of 2021 exchange rates.
Abbreviations
Currencies
$ stands for US Dollar
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xv
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xviii
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xix
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