Flavored Spirits Market Size
The Global Flavored Spirits Market reached US$ 18.5 billion in 2022 and is expected to reach US$ 56.9 billion by 2031 and is expected to grow with a CAGR of 15.1% during the forecast period 2024-2031. The global flavored spirits market is being driven by rising demand for flavored spirits in the cocktail and mixed drink industries.
A flavored spirit is generally a distilled beverage with natural or artificial flavors. Flavorings can be added during or after the distillation process. Cocktails, mixed drinks, and shooters frequently feature flavored spirits. The flavors which are infused in the spirits are usually extracted from fruits, spices, wild herbs, or raw nuts. There are a variety of flavored spirits found in the market such as cherry-flavored spirits, maple-flavored spirits, and many more. Flavored spirits often draw inspiration from various global cuisines and flavors. For instance, there has been an increase in the popularity of flavored spirits with tropical or exotic flavors like mango, coconut, or passionfruit, reflecting the growing interest in global taste experiences. Flavored spirits are also entering the ready-to-drink market, where they are combined with mixers or other ingredients to create convenient and pre-packaged alcoholic beverages.
| Metrics | Details |
| CAGR | 15.1%% |
| Size Available for Years | 2022-2031 |
| Forecast Period | 2024-2031 |
| Data Availability | Value (US$) |
| Segments Covered | By Type, By Flavor, By Distribution Channel |
| Regions Covered | North America, Europe, Asia-Pacific, South America, and Middle East & Africa |
| Fastest Growing Region | Asia-Pacific |
| Largest Region | North America |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and Acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, Porter’s Analysis, Pricing Analysis, Regulatory Analysis, Supply-Chain Analysis, and Other key Insights. |
Market Dynamics
Growing Popularity of Flavored Spirits Among Millennials and Female Consumers is Expected to Foster the Market Growth
Millennials are known for their adventurous and experimental approach to food and beverages. This generation seeks unique flavor experiences and enjoys trying new products. Millennials value authenticity and are drawn to craft products. Flavored spirits produced by smaller, artisanal distilleries or with unique flavor profiles can resonate with this demographic. According to a recent study by Pennsylvania University, 63% of men drank alcoholic beverages compared to 57% of women.
Traditional gender roles associated with specific drink preferences have evolved. Female consumers are increasingly exploring a wider range of alcoholic beverages, including flavored spirits. Flavored spirits offer a diverse range of flavors that can appeal to different taste preferences. This variety allows female consumers to find options that align with their flavor preferences, enhancing their drinking experiences.
Innovative Mixology and Cocktail Culture are Driving the Flavored Spirits Market
Mixology and cocktail culture have encouraged the use of flavored spirits as key ingredients in creating unique and innovative cocktails. Bartenders and mixologists constantly experiment with different flavor combinations to craft new and exciting drinks. By incorporating flavored spirits into their creations, mixologists have elevated the drinking experience by offering a wide range of flavor profiles that appeal to consumers' evolving tastes and preferences.
The visual appeal of creatively crafted cocktails made with flavored spirits has gained significant attention on social media platforms like Instagram. Consumers are captivated by visually stunning cocktails, which has contributed to the growing popularity of flavored spirits. Social media platforms have become powerful marketing tools for mixologists and cocktail enthusiasts to showcase their creations. The visual nature of these platforms has played a role in driving interest and awareness of flavored spirits, as consumers seek out these unique and visually appealing drinks.
Market Saturation and Competition from Other Alternatives are Restraining the Flavored Spirits Market
The flavored spirits market has witnessed a proliferation of brands offering flavored options. With an increasing number of players entering the market, competition intensifies, making it challenging for new or smaller brands to gain visibility and market share. For instance, the most widely consumed spirits were baijiu, whiskey, and vodka, which accounted for 23%, 17%, and 14% of total alcohol consumption respectively.
Retailers often have limited shelf space dedicated to alcoholic beverages, including flavored spirits. The dominance of established brands and their extensive product portfolios can squeeze the availability and visibility of lesser-known or niche-flavored spirits.
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Market Segmentation Analysis
The global flavored spirits market is segmented based on type, flavor, distribution channel, and region.
Vodka Segment Holds the Largest Market Share in the Flavored Spirits Market
Vodka is known for its versatility and ability to blend well with a wide range of flavors. Its neutral and relatively mild taste allows it to be infused with various fruits, herbs, spices, and other ingredients, resulting in a diverse range of flavored vodka options. The mixability of vodka makes it an ideal base for cocktails, giving bartenders and mixologists the freedom to create innovative and appealing drinks by incorporating flavored variations.
Vodka has traditionally enjoyed a strong consumer base and widespread popularity, both domestically and internationally. According to Distilled Spirits Council of the United States, Vodka accounted for US$ 7.3 on a CAGR of 4.9% in the year 2020-21. Vodka's broad appeal and consumer familiarity have made it a popular choice for those seeking flavored spirits, as consumers are more likely to explore familiar options when trying new flavors.
Market Geographical Share
North America Held the Largest Market Share of the Flavored Spirits Market
North America, particularly the United States, has a strong culture of alcohol consumption, including flavored spirits. The region has a large consumer base with a high demand for innovative and diverse flavor options in its alcoholic beverages. The popularity of flavored spirits, such as flavored vodkas, flavored whiskies, and flavored rums, has been fueled by the preferences and consumption patterns of North American consumers.
North America has a well-developed and mature alcoholic beverage market. The region has a long history of producing and consuming a wide range of spirits, including flavored spirits. For instance, the Distilled Spirits Council of the United States (DISCUS) reported that 2020 represented the 11th consecutive year that spirits sales continued to gain market share from flavored beverages. The availability of a diverse range of flavored spirits, both from domestic and international producers, contributes to North America's larger market share in the flavored spirits segment.
Flavored Spirits Companies
The major global players in the market include Bacardi Limited, The Brown-Forman Corporation, Pernod Richard, Diageo PLC, Suntory Beverage Food Limited, Constellation Brands Inc., Ashai Group Holdings Limited, Distell Group Limited, William Grant Sons, and San Miguel Corporation.
COVID-19 Impact on Market
Global Recession/Ukraine-Russia War/COVID-19, and Artificial Intelligence Impact Analysis
A World Trade Organisation (WTO) research found that the COVID-19 outbreak disrupts regular economic and daily life around the globe. Exports have decreased as a result of the ongoing Covid-19 issue and the protracted global recession. Order cancellations as a result of the latter's significant supply chain and demand interruptions. The rise is mainly attributable to businesses restructuring their operations and recovering from the effects of COVID-19, which had previously led to restrictive containment measures like social withdrawal, remote work, and the closure of commercial activities, all of which posed operational difficulties.
Key Developments
- In May 2023, Salud, a global alcoholic beverage brand announced its strategic development plans and the impending launch of cutting-edge ready-to-drink (RTD) products in ten more Indian locations.
- In November 2022, Next Century Spirits, a growing company at the forefront of spirits innovation that uses its proprietary blending and filtration technology to build a best-in-class portfolio of owned brands and a robust B2B and White Label business, today announced the acquisition of XED Beverages, a leading future-focused beverage company.
- In May 2023, Absolut, a brand born to mix, introduces the Absolut Vodka and Ocean Spray Vodka-Cranberry Range, a new Ready-to-Drink line with Ocean Spray building on the brands' successful marketing partnership in the US.
Why Purchase the Report?
- To visualize the global flavored spirits market segmentation based on type, flavor, distribution channel, and region, as well as understand key commercial assets and players.
- Identify commercial opportunities in the market by analyzing trends and co-development.
- Excel data sheet with numerous data points of flavored spirits market-level with all segments.
- The PDF report consists of cogently put-together market analysis after exhaustive qualitative interviews and in-depth market study.
- Product mapping is available as Excel consists of key products of all the major market players.
The global Flavored Spirits market report would provide approximately 61 tables, 59 figures and 190 Pages.
Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
