COCKTAIL SYRUPS MARKET ANALYSIS

The global cocktail syrups market size was valued at US$ 4.50 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.8% from 2023 to 2030. The growth of the cocktail culture is prime factor propelling cocktail syrups market. This is due to the availability of a wide variety of cocktails, such as mulled wine, mojito, and whiskey cocktail. Moreover, the popularity of low-alcohol and non-alcoholic drinks is another major driver propelling market growth. In recent times, consumers are focusing on healthy options and are preferring products that are natural and organic. This has led to the emergence of innovative products such as cocktail syrups with added health benefits, such as lavender and ginger.

Global Cocktail Syrups Market: Regional Insights

Based on geography, the global cocktail syrups market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.

Regionally, North America is expected to dominate the global cocktail syrups market. This is largely due to the high consumption of western-style cocktails in the region, and the rising popularity of home bartending. In addition, the growing bar and restaurant industry in the region is again fueling regional market growth.

Europe is expected to witness fastest growth in the global cocktail syrups market over the forecast period. The growing trend of cocktail parties in Europe is contributing to the growth of the market in this region. Moreover, expanding foodservice and food retail is further projected to foster market growth.

Figure 1. Global Cocktail Syrups Market, By Region, 2023

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Global Cocktail Syrups Market Drivers:

Growing demand for cocktails to foster market growth

Due to growing health conscious consumers worldwide cocktails are witnessing strong demand as they contain low amount of alcohol ranging from 4%–7%, along with added flavors like cranberry, lemon, orange, and passion fruit, which attract health-conscious consumers. Moreover, the per capita consumption of alcohol in Australia, Russia, Brazil, China, France, and South Africa has dropped significantly in recent years. The formation of the Federal Service for Alcohol Market Regulation and the adoption of national strategy concept by the Russian government to reduce alcohol abuse has led to the lower alcohol consumption across the country.

Shifting consumer preferences towards convenience to augment market growth

Due to busier lifestyles and hectic work schedules of consumers, ready-to-drink products are gaining huge demand. Growing popularity of homemade alcohol is again contributing to the demand for cocktails. According to an article published by The Drinks Business in October 2021, in the post-pandemic world, 47% of cocktail consumers are continuing to experiment with kitchen mixology. During the pandemic, consumers' willingness to experience high-quality cocktails at home expanded, which has directly contributed to the trend, as well as a consumer quest to locate the best ingredients and get creative.

Global Cocktail Syrups Market Opportunities:

Increasing innovation in the field of cocktails is expected to provide significant growth opportunities. For instance, in April 2019, Torani launch its new range of syrups under the brand name Puremade Syrups. The product is available in various fruit flavors, including raspberry and peach. Puremade Syrup is a perfect balance of sweetness and flavor, made with natural ingredients, without any preservatives, and is GMO-free.

The shift in consumer interest from traditional alcoholic beverages to flavored cocktails is also boosting the market is expected to bring bright market opportunities for key players in the market. Moreover, the increasing popularity of vegetable & botanical cocktails is also opening up new avenues for the market.

Global Cocktail Syrups Market Trends:

Growing party culture among the millennial

The growing party culture among the millennial and young population across the globe is fueling the market growth. This is mainly due to the availability of a wide variety cocktails and the increasing number of people who are interested in making their own drinks. Moreover, increase in the bar and restaurant industry is further propelling market growth.

Rising popularity of fruit flavored syrups

Fruit-flavored cocktail syrups are a great addition to bar arsenal. Many of these cocktail syrups are made with natural ingredients and don’t contain any artificial flavors. Moreover, growing demand for product with high fruit content is encouraging manufacturer to launch syrups infused with natural ingredients.

Global Cocktail Syrups Market Restraints:

Increasing demand for non-alcoholic beverages to hinder market growth

According to a survey conducted by UCL in July 2019, 36% of consumers in the age group of 16-24 in full-time education are abstaining from alcohol, resulting in a dip in the sales of conventional alcoholic beverages and cocktails and a rise in the demand for healthier and more functional beverage. From Peroni to Heineken, the demand for 0.0% beers is growing. Hence, growing demand for non-alcoholic beverages is expected to restrict market growth.

Growing population of teetotalers and religious constraints to hamper market growth                            

Growing teetotalers and religions impediment regarding the consumption of alcohol are a major restraint factors for the market growth. Majority of populations are not comfortable with alcoholic drinks high concentration, thus they are tend to consume low-alcoholic syrups. These factors are projected to hamper the market growth.

Figure 2. Global Cocktail Syrups Market, By Flavor, 2023

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Global Cocktail Syrups Market Segmentation:

The global cocktail syrups market report is segmented into product, flavor, and region

Based on product, the market is segmented into Fruit, Herbs & Seasoning, Vanilla, and Others. Out of which, Fruit is expected to dominate the global market over the forecast period. They are healthier alternative to other sugary drinks. According to the Bacardi Holiday Survey 2020, 25% of users favor creating cocktails at home with natural and organic ingredients.

Herbs & Seasoning segment is also expected to witness significant growth in the near future and this is owing to the growing demand from commercial and household sectors. The segment is also witnessing growth on the account of their taste and associated health benefits.

Based on flavor, the market is segmented into Sweet, Salty, Sour, and Mint. Out of which, Sweet is expected to dominate the global market over the forecast period and this is attributed to the fact that they perfectly balance the bitterness and sourness of the spirits like whisky, rum, and gin.

Salty segment is also expected to witness significant growth in the near future and this is owing to the growing use of this flavor for increasing the sweetness and balance the bitterness of the drink.

Global Cocktail Syrups Market: Key Developments

In February 2021, MONIN unveiled its flavor to the year — Strawberry Rose. Monin Strawberry Rose Syrup combines the queen of florals with ruby red strawberry to create a sophisticated bouquet of flavors.

In December 2019, Bristol Syrup Company partnered with bar and restaurant chain The Alchemist. The new partnership commenced with the brand’s premium cocktail syrups being used heavily throughout The Alchemist’s new theatrical winter drinks menu, seeing eight flavors.

In July 2022, Diageo, a global marketer in beverage alcohol, and The Vita Coco Company, a global high-growth platform of non-alcoholic beverage brands, announced their partnership to launch a line of premium canned cocktails crafted with a delicious blend of Captain Morgan rum and refreshing-tasting Vita Coco coconut water.

Global Cocktail Syrups Market: Key Companies Insights

The global cocktail syrups market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global cocktail syrups market are Liber & Co., MONIN, The Simple Syrup Co, Bristol Syrup Company, Toschi Vignola s.r.l, Giffard, Teisseire, Taylerson’s Syrups, ODK Orsadrinks, 1883 Maison Routin, and The Syrup Company

*Definition: A cocktail syrup is a thick liquid used to sweeten cocktails and mixed beverages. It consists of sugar, water and flavorings like fruits, herbs or spices.