Premium Spirit Market Size, Share & Trends 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

  • Published Date: Aug, 2020
  • Base Year for Estimate: 2019
  • Report ID: GVR-4-68038-967-8
  • Format: Electronic (PDF)
  • Historical Data: 2016 - 2018
  • Number of Pages: 80

Report Overview

The global premium spirit market size was valued at USD 107.74 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 10.3% 2020 to 2027. 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.

U.S. premium spirits market size

In 2019, 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.

Distribution Channel Insights

On-trade accounted for more than 55.0% share of the global revenue in 2019. This distribution channel includes restaurants, bars, clubs, cafes, and hotels. The professionals working at the on-trade outlets, such as bartenders and waiters, play a crucial role in the sales process of the products.

The off-trade distribution channel is expected to register the fastest CAGR of 10.4% from 2020 to 2027 in terms of revenue. An increasing number of large supermarket chains, along with their in-store promotions in the developing nations, are expected to fuel the growth of the distribution channel in the upcoming years. The specialist alcohol retailers account for a significant share of the off-trade sales of the product. In addition, the growing adoption of e-commerce is a key factor fueling the growth of this distribution channel, especially in the U.S. and the U.K. The COVID 19 outbreak and imposition of nationwide lockdown in several countries have pushed the off-trade sales of premium spirits significantly.

Product Insights

Vodka held the largest revenue share of more than 25.0% in 2019. The availability of a wide range of vodka, including flavored and gluten-free, has boosted the sales of the product across the world. Ketel One Vodka (Diageo), Tito's Vodka, Chase Vodka, Chopin, Grey Goose, Van Gogh Vodka, Belvedere, Absolut Vodka, Stolichnaya, Three Olives', Zyr Vodka, Crystal Head, and Cîroc are high-end vodka brands gaining popularity across the globe owing to their fine quality. Companies have been introducing innovative flavors to their products, including marmalade, oak-smoked, coconut, berries, citrus, vanilla, and rhubarb, to attract a wider range of consumers.

Global premium spirits market share

The tequila segment expected to register the fastest CAGR of 11.6% from 2020 to 2027 in terms of revenue. Tequila has been witnessing remarkable popularity among the consumers. Growing cocktail culture has been boosting the demand for tequila worldwide, especially in the U.S. and Mexico. Unlike brandy or whiskey, where high-end products are well established, tequila is relatively new to offering premium options, which enables the tequila manufacturers to explore the industry. Tequila has been shifting from conventional consumption as ‘party shot’ to luxury cocktails, such as Margarita and Tequila Sunrise. This growing trend is expected to encourage the producers to invest in premium tequilas.

Regional Insights

Asia Pacific held the largest volume share of over 40.0% in 2019. Rising use of social media and increasing health awareness have been fueling the demand for superior quality spirits in the region. Consumers are seeking low alcohol content and authentic drinks.

Growing bar culture in the developing nations, including China, India, and Thailand, has been fueling the regional market growth. Furthermore, increasing disposable income, along with economic growth, is a key factor in boosting the capacity to consume superior quality and luxury spirits in the region.

China, India, Hong Kong, Australia, New Zealand, and South Korea are the prominent markets of the region. China accounted for the largest share in the Asia Pacific market as a result of increased sales volume of high-end spirits at the domestic level. In addition, a growing middle-class population and an increasing number of urban dual-income families in India are expected to fuel the growth of the market in the nation in the near future.

Key Companies & Market Share Insights

The global market is highly competitive with the presence of numerous global level players. The companies have been witnessing significant growth of their premium brands over the years. For instance, Diageo’s premium-and-above brands were the best performers in the developed markets in 2018. These brands’ ‘Reserve’ collection grew by 11% in 2018-2019. Similarly, Pernod Ricard, Rémy Cointreau, and Suntory Group are also witnessing considerable growth in the high-end product segments, and hence focusing on premiumization. Some of the prominent players in the premium spirit market include:

  • Diageo

  • Pernod Ricard

  • TITO’S HANDMADE VODKA

  • HITEJINRO CO., LTD

  • Brown Forman Corporation

  • Bacardi Limited

  • Tanduay Distillers, Inc.

  • Allied Blenders and Distillers Pvt. Ltd. (ABD)

  • Guizhou Moutai Wine Co., Ltd.

  • Alliance Global Group, Inc. (Emperador)

  • ROUST

Premium Spirit Market Report Scope

Report Attribute

Details

Market size value in 2020

USD 135.76 billion

Revenue forecast in 2027

USD 235.74 billion

Growth Rate

CAGR of 10.3% from 2020 to 2027

Market demand in 2020

2,009.5 million liters

Volume forecast in 2027

3,109.4 million liters

Growth Rate

CAGR of 8.0% from 2020 to 2027

Base year for estimation

2019

Historical data

2016 - 2018

Forecast period

2020 - 2027

Quantitative units

Revenue in USD million, volume in million liters and CAGR from 2020 to 2027

Report coverage

Revenue and volume forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Product, distribution channel, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S.; Germany; U.K.; China; India; Brazil; South Africa

Key companies profiled

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

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Segments Covered in the Report

This report forecasts revenue and volume growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global premium spirit market report on the basis of product, distribution channel, and region:

  • Product Outlook (Volume, Million Liters; Revenue, USD Million, 2016 - 2027)

    • Vodka

    • Whiskey

    • Gin

    • Tequila

    • Rum

    • Brandy

    • Others

  • Distribution Channel Outlook (Volume, Million Liters; Revenue, USD Million, 2016 - 2027)

    • On-trade

    • Off-trade

  • Regional Outlook (Volume, Million Liters; Revenue, USD Million, 2016 - 2027)

    • North America

      • The U.S.

    • Europe

      • Germany

      • The U.K.

    • Asia Pacific

      • China

      • India

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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