DISTILLED SPIRITS MARKET ANALYSIS

Distilled Spirits MarketSize and Trends

The Global Distilled Spirits Market was valued at US$ 30.5 Billion in 2022 and is expected to expand at a CAGR of 4.89%  and market value is expected to reach US$ 44.7 Billion during 2023-2030.

Distilled spirits are a class of alcoholic beverage obtained from the distillation of a mixture produced from alcoholic fermentation. The distillation process primarily increases the alcohol content and reduces the dilution by components such as water. This results in higher alcohol content in distilled spirits compared to brewed beverages. The minimum alcohol content in distilled spirits is 20% by volume and is therefore called hard liquor. However, the minimum alcohol content in wine, cider, and beer is less than 10% by volume, therefore the drinks are not classified as spirits.

Based on product, the market is segmented into whiskey, vodka, rum, gin, tequila, brandy, and others. The vodka segment dominated the distilled spirits market in 2021. This dominance is due to the increasing demand for the premium and super-premium categories of vodka. A premium range of vodkas contains high-quality water which in turn, differentiates them from the regular varieties.

Based on the distribution channel, the distilled spirits market is segmented into supermarkets, hypermarkets, specialty stores, drug stores, online, and others.

In terms of revenue, Asia Pacific dominated the distilled spirits market in 2021 and accounted for a share of 40%. Major factors propelling the growth of this market include the steadily increasing demand for alcoholic beverages and the rising consumption of alcohol in emerging economies including India and China. In China, the sales of imported spirits have grown almost four times in the last ten years. In addition to this, the high demand for the local white spirit, commonly known as baijiu is further aiding the market growth of distilled spirits in China. Europe is the second largest region that dominates distilled spirit market. This dominance is majorly due to the extensive consumption of alcoholic beverages and the steadily growing young population (21 to 64 years old) in the region.