Pisco Market Size, Share, Industry, Forecast and outlook (2024-2031)

Global Pisco Market is Segmented By Origin (Peruvian, Chilean), By Type (Acholado, Puro, Mosto Verde, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Pisco Market Overview

The Global Pisco Market report analyzes the market shares, size, recent trends, future market outlook, and competitive intelligence. The demand for Pisco is increasing due to its rising popularity as a cocktail ingredient and the growth of the hospitality industry worldwide. The market is witnessing a surge in demand from the Americas region. The competitive rivalry intensifies with major players such as Viña San Pedro, BarSol Pisco, Pisco Portón, and others actively operating in the market.

Pisco is a type of brandy manufactured only in Peru and Chile and is made by distilling fermented grape juice. Pisco originated around the 16th century and has become a popular distilled spirit in the rapidly growing cocktail industry. Consumer demand for innovative and flavorful spirits has contributed to a growing market. To give the spirit a delightful and unique profile, the manufacturers are infusing it with softer and subtler flavors. Increasing consumer awareness of this exotic alcoholic beverage is expected to boost demand in the global market during the forecast period.

Pisco Market Scope

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Pisco Market Dynamics

Traditional spirits are getting more popular, which is helping to boost market performance

The rise in demand for pisco has been impacted by the growing popularity of traditional spirits among drinkers. Consumers all across the world are clamoring for exotic drinks because of the unique experience they provide, moving the alcohol industry ahead. The spirit industry, for example, enjoyed increased growth in 2019, according to the Distilled Spirits Council of the United States (DISCUS), with suppliers' sales increasing by 5.3 percent and volumes increasing by 3.3 percent. Spirits sales increased to 37.8% of total alcoholic beverage sales, indicating a significant increase in market share.

Furthermore, the market is being driven by the growing trend of fusing various spirits to create new cocktails, which refers to combining different flavors to create unique alcoholic beverages. As a result, numerous manufacturers have created distinctive cocktails like the Pisco Sour, El Capitan, and The Chilcano, which have captivated consumers all over the world. Hybrid spirits are an attempt to push the limits of alcohol innovation while also encouraging the exploration and growth of traditional alcoholic drink categories. In addition, many countries conduct numerous drinking festivals to promote traditional drinks like pisco. The Piscois Peru Festival, for example, was held in December 2017 in Delhi and Mumbai to promote versatile drinks and introduce new and unusual cocktail varieties to consumers. As a result, consumer interest in pisco is likely to expand, resulting in market expansion.

However, as consumers are becoming more aware of the negative consequences of alcohol on their health, they are gravitating toward zero and low alcohol-by-volume (ABV) beverages. Alcohol drinking, according to the Centers for Disease Control and Prevention, can lead to chronic health problems like high blood pressure, kidney disease, and an increased risk of cancer. According to the National Institute on Alcohol Abuse and Alcoholism, around 95,000 persons died in the United States as a result of alcohol-related issues. Furthermore, consumers are growing more health-conscious, looking for products with strong nutritional benefits to avoid such issues. Moreover, to attract new customers, numerous alcoholic beverage makers are launching new low-alcohol beverage variations, which is impeding market growth.

Pisco Market Segmentation Analysis

The Acholado segment held the largest market revenue share in the year 2020

Acholado, which means 'half-bred,' is prepared by combining different grape varieties before allowing the juice to rest instills. The grape varietals are fermented separately, and the longer each one is fermented, the more flavor it adds to the drink. As a result, this category is driven by flavorful and unique blends. Such aromatic variants in the market are in high demand among millennials and young people. The puro market, on the other hand, is predicted to grow at the fastest rate due to the unusual and traditional flavors available to professional drinkers in Chile and Peru.

Due to its authentic taste offerings and availability in the major pisco markets across South America and Europe, the Chilean origin segment has the largest market share. According to the Chilean Ministry of Production, the country produces 35 million liters of pisco each year and exports it to more than 20 countries. However, the volume of exports was low, and the producers are concentrating on boosting production and exports to the global market. Peruvian pisco, on the other hand, is primarily consumed outside of South America and has enormous potential in developed markets.

Global Pisco Market Geographical Share

South America is expected to dominate the global pisco market in the year 2020

Due to the presence of the two main pisco-producing countries, Peru and Chile, South America has the highest market revenue share. The major producers in the region are reinventing the spirits category, which is driving the market. According to Pisco Chile, an organization that represents all of the country's distilleries, the market has changed dramatically in recent years, with premium and ultra-premium labels accounting for about 70% of the categories. In addition, manufacturers are increasing their exports and developing new and innovative cocktail ideas to tap into the untapped potential and promote these spirit varieties, thereby fueling the industry.

Following South America, Europe is expected to hold the second-largest market share, which it will maintain throughout the forecast period. Traditional spirits' growing appeal in countries including the United Kingdom, Russia, and Germany has boosted market growth. Furthermore, the Association of Peruvian Exporters reports that imports of Peruvian flagship products to Russia have increased, contributing to improved regional market performance.

Pisco Market Companies and Competitive Landscape

To expand their businesses, companies like Pisco Portón, Macchu Pisco, Barsol Pisco Perola GmbH, La Diablada Pisco, and Cooperativa Agricola Pesquera Elqui Ltda are focusing on new product development and increasing exports. Because of the concentrated production of the drink in Chile and Peru, as well as the presence of key players exporting and launching their products worldwide, the market has a consolidated structure. For example, Catan Pisco announced its product launch in Los Angeles in May 2019 to provide spirit enthusiasts with a new taste of the traditional Chilean drink. At the Madrid Fusion 2019, the Commission for the Promotion of Peru for Exports and Tourism (PROMPERU) launched the brand 'Pisco, Spirit of Peru' through a Peruvian brand.

COVID-19 Impact on Pisco Market Growth

As a result of the global outbreak of COVID-19, various governments have imposed stringent lockdowns, forcing the closing of bars, taprooms, and restaurants to ensure physical distance. According to a poll conducted by the National Restaurant Association, eateries in the United States lost USD 30 billion in March as a result of the government's decision to close restaurants and bars to stop the spread of the virus. Similarly, the Morning Advertiser reports that approximately 7000 pubs across the United Kingdom are concerned that the lockout may force them to close. These closures, combined with a labor shortage, have had a severe impact on pisco production and consumption trends. Alcohol consumption is expected to be substantially reduced in 2020, according to the Pan American Health Organization (PAHO), due to rising health concerns among consumers.

However, the global pandemic situation is gradually stabilizing, which has resulted in a gradual return to normalcy in transportation and logistical activities. As a result of the opening of pubs and restaurants, the market is likely to grow in prominence in the future years.