Flavoured Spirits Market: By Type (Vodka, Rum, Tequila, Whiskey, Gin, and Others), By Taste (Fruits, Nuts & Seeds, and Herbs & Spices), By Distribution Channel (Supermarket/Hypermarket, Specialty Retailers, Convenience shops, E-Commerce, And Others) - Forecast 2027
|ID: VPR/F&B/1266||Publishing Year: November 2021||Pages: 125||Format:|
Flavoured Spirits Market Overview:
Global Flavoured Spirits Market was valued at $ 27 billion in 2020 and is expected to reach $ 37.2 billion by 2027, registering a CAGR of 4.68% from 2021 to 2028.
Flavoured Spirits are hard liquor or hard alcohol that has been enhanced with additional tastes to give them a distinct taste profile and improve their organoleptic qualities. In order to flavour the spirits, a variety of additives is used. To enhance the taste of the liquor, honey or sugar is sometimes added. Whiskey, rum, tequila, vodka, and other flavoured alcohols are often used as the basis. The popularity of unusual tastes in spirits is growing, and flavoured liquor is becoming a bigger part of the alcohol industry. In addition, consumers' willingness to try novel tastes has resulted in a high level of adoption of Flavoured Spirits in recent years.
Foodservice and food retail are the most common distribution routes for Flavoured Spirits. There is no question that the demand for sweetened and Flavoured Spirits is growing. According to current projections, the global spirits industry will continue to grow at a rapid pace in the next years. Product innovation is the only way to retain supremacy in the expanding global spirits industry. However, the COVID-19 epidemic has significantly slowed the growth of the Flavoured Spirits industry, since restaurants, bars, and pubs across the world have been forced to close, and profit margins have plummeted. It has thrown the whole supply chain into disarray. Constant lockdown had a detrimental effect. Despite high demand in certain regions across the world, large merchants such as supermarkets and hypermarkets, as well as liquor shops, have experienced severe shortages of Flavoured Spirits.
The effect of the emerging economy and rising income on this market is significant. The increased demand for alcoholic refreshments with distinct tastes is also pushing the global Flavoured Spirits market forward. The high commerce of Flavoured Spirits has been influenced by changes in the quality of life and the adoption of contemporary trends. The total flavoured spirit industry is anticipated to be restrained by government laws and restrictions for liquor in high-progress markets like India. Liquor sales are only allowed in government-approved stores in India. Additionally, alcohol marketing and use in public areas are expected to have a negative effect on market growth. The growing demand for fortified and energising flavoured alcoholic drinks is anticipated to drive market development in the coming years.
The expanding foodservice sector is playing a major role in the growth of the global craft spirits market. The global spirit market is also driven by developing economies. Furthermore, the best way to adapt is to become dynamic and to continue working to improve Flavoured Spirits and drinks. Many people think that rising demand for non-alcoholic drinks would stifle the development of the goods market.
- Bacardi Limited (Bermuda)
- Diageo PLC (UK)
- Suntory Beverage & Food Limited (Japan)
- Constellation Brands, Inc. (US)
- Distell Group Limited (South Africa)
- The Brown-Forman Corporation (France)
- Pernod Ricard (France)
- William Grant & Sons (Scotland)
- Asahi Group Holdings, Ltd (Japan)
- San Miguel Corporation (Philippines)
The market may be divided into segments based on product type, taste, distribution channel, and geographic location. The worldwide Flavoured Spirits market is segmented into many categories, including vodka, rum, tequila, whiskey, gin, and others. Fruits, nuts & seeds, and herbs & spices are the three flavours that make up the worldwide Flavoured Spirits market. The worldwide Flavoured Spirits market may be divided into supermarket/hypermarket, speciality retailers, convenience shops, e-commerce, and others based on the distribution channel.
Impact of COVID-19 on the market:
The impact of coronavirus on travel retail will be “severe”, particularly in the Asia Pacific, which is “now heavily reliant on Chinese consumers. Scotch, Cognac and baijiu are the categories most purchased by Chinese tourists, and will struggle as people go out less, celebrate less and get together less,” Keeling notes. “Proportionally, baijiu will probably suffer the largest impact because it is mainly bought by Chinese consumers.” By the spirits business”
A number of major drinks groups are also understandably concerned about Covid-19. Johnnie Walker owner Diageo has already cut its full‐year 2020 profit forecast by up to £200 million (US$260m) as bars and restaurants in Greater China remain empty. The firm expects disruption in the market to last until at least March but says it will take until the end of fiscal 2020 for consumption levels to return to normal.
Beam Suntory also said the “coronavirus situation is creating challenges in key Asia markets” in its 2019 full‐year results.
Pernod Ricard paints a similar picture and anticipates the outbreak will have a “severe” impact on its China and travel retail business. In China, the firm expects a “gradual recovery” from March, returning to normal in June. As a result, the French drinks group cut its guidance for organic growth in profit from recurring operations for fiscal 2020 to 2%‐4%, from previous expectations of 5%‐7%.
In the Flavoured Spirits industry, Europe is the leading player. For big spirit companies, Germany is the most lucrative market. According to the present situation, the region's spirit market is expected to grow at a high CAGR of 6.07% from 2021 to 2028 (post-COVID 19).
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