The global premium alcohol market is estimated to grow from US$438.607 billion in 2020 to US$660.031 billion in 2027 at a CAGR of 6.01%.
The global premium alcohol market is projected to grow by the end of 2026 as an attribute to the growing trend of low-alcohol beverage consumption due to the customer enthusiasm for trying new beverages.
Key factors contributing to the growth
The demand for the consumption of alcoholic beverages is growing globally, especially in developing countries. According to a report provided by the World Health Organization, in 2018, the total alcohol consumption was around 6.2 litres per person, ranging from age 15 to old age. Whereas a survey done by the National Institute on Alcohol Abuse and Alcoholism in 2019 stated that 85.6% of people ranging from 18 to older have reported the consumption of alcohol at some point in time. And 69.5% of people reported alcohol consumption in the past year. In contrast, 25.8% of people reported binge drinking in the previous month from the date of the survey. A large segment of customers prefers to consume fewer but higher-quality alcoholic beverages. The demand for such alcoholic beverages is growing all over the world. This has resulted in the growth of the alcohol market. Premium alcohol demand is the prime factor in the alcohol market’s growth. A few of the premium alcoholic beverages include cocktails, spirits, beer, mojitos, and many more. According to a report provided by the Distilled Spirits Council of the United States in 2019, the share of the spirit market is increasing in the global alcoholic beverage market. The attribution for this growth is to the increasing demand for innovative, and authentic alcoholic beverages among the age group of 21-35 years old.
Just like in other industries, the customers of the beverage industry as well are interested in or are aware of the preparation process of the drink. This has led the firms to offer innovative and diverse beverages that attract customers.
Recently, in November 2021, Pernod Ricard announced the “Chuan Malt Whisky Distilled” in Emeishan, China. It is stated that Chuan Malt Whisky Distilled is the first international spirits and wine group that is to establish, a fully operational malt whisky distillery in China.
In November 2021, Diageo India launched its 3600 Bottles’ second edition of United’s Epitome Reserve whisky, which is signed by Master Blender Mahesh Patil. With this step, it attempts to broaden its spirit industry in India.
In October 2021, Bacardi Limited, the famous rum brand, announced the expansion of its production within the next 12 months. It also announced it was stepping into the production of scotch whiskey, malt, and vodka.
In July 2020, Guizhou Moutai Group announced the launch of its series of new products. They are- Blueberry Wine “Umeet”, and “meet blue snow”, “meet Danhong”, “meet brilliance”.
In 2019, Hitejinro Co. Ltd., one of the largest South Korean beverage companies, announced the launch of a new beer. It also mentioned the plan to add a new lager named “Terra” that is made from malt grown in Australia’s Golden Triangle to boost the beverage sales.
In January 2020, Constellation Brands Inc., which is a famous wine company brand, announced the launch of its new wine brand named “Unshackled”, which is available in the United States of America. The portfolio of this new brand includes Cabernet Sauvignon, Rose, and Red Blend from the wine-growing regions of California’s central coast and California’s north coast.
The Impact of COVID-19 on the Global Premium Alcohol Market: COVID-19 harmed many industrial sectors. In particular, due to lockdown and restrictions on social distancing, there was a direct impact on restaurants, hotels, and bar industries. But at the same time, several people started recreating the cocktail preparation at home. And the inclination towards more quality alcoholic beverages increased. The preference of consumers for crafting their cocktails on their own at home has increased the demand for spirits and liquid soda as well. Considering this point, in November 2021, Pernod Ricard launched a holiday campaign. This launch is to inspire the moments of a holiday for consumers. At the same time, as consumers became aware of the various styles of cocktail preparation, they became more particular in choosing the bartenders. This has brought a new challenge for the restaurant, hotel, and bar industries. Countries such as the USA, Canada, India, Japan, and many more have launched or opened many new bars in the year 2020. The new bars are launched by promoting the authentic cocktail theme. Some of these bars are- the EDITION in Tokyo, Raffles in India, Bar Corso in Vancouver, Silver Lyan in Washington DC, Mother’s Ruin in Chicago, Margot Natural Wine and Aperitivo Bar in Miami, Death & Co in Los Angeles, Dead Rabbit NOLA in New Orleans, Dante’s West Village in New York Four Pillars Distillery and Bar in Sydney, the NoMad Hotel in London, and many more. Due to rising health awareness, consumers are looking for low alcohol spirits with the authentication of a drink.
|Market size value in 2020||US$438.607 billion|
|Market size value in 2027||US$660.031 billion|
|Growth Rate||CAGR of 6.01% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Type, Distribution Channel, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Diageo, Pernod Ricard, TITO’S HANDMADE VODKA, HITEJINRO CO., LTD, Brown Forman Corporation, Bacardi Limited, Tanduay Distillers, Inc., Allied Blenders and Distillers Pvt. Ltd. (ABD), Guizhou Moutai Wine Co., Ltd., Alliance Global Group, Inc. (Emperador), ROUST|
|Customization scope||Free report customization with purchase|
KEY MARKET SEGMENTS
Frequently Asked Questions (FAQs)
Q1. What will be the premium alcohol market size by 2027?
A1. The global premium alcohol market is estimated to reach a total market size of US$660.031 billion by 2027.
Q2. What is the size of the global premium alcohol market?
A2. Premium Alcohol Market was valued at US$438.607 billion in 2020.
Q3. What are the growth prospects for the premium alcohol market?
A3. The premium alcohol market is estimated to grow at a CAGR of 6.01% during the forecast period.
Q4. How is the global premium alcohol market segmented?
A4. The premium alcohol market has been segmented by type, distribution channel, and geography.
Q5. What factors are anticipated to drive the premium alcohol market growth?
A5. The premium alcohol market growth is attributed to the growing trend of preference of low-alcohol beverage consumption due to the costumer’s enthusiasm towards trying new beverages.
1.1. Market Definition
1.2. Market Segmentation
2. Research Methodology
2.1. Research Data
3. Executive Summary
3.1. Research Highlights
4. Market Dynamics
4.1. Market Drivers
4.2. Market Restraints
4.3. Porter Five Forces Analysis
4.3.1. Bargaining Power of Suppliers
4.3.2. Bargaining Power of Buyers
4.3.3. Threats of New Entrants
4.3.4. Threat of Substitutes
4.3.5. Competitive Rivalry in the Industry
4.4. Industry Value Chain Analysis
5. GLOBAL PREMIUM ALCOHOL MARKET BY TYPE
6. GLOBAL PREMIUM ALCOHOL MARKET BY DISTRIBUTION CHANNEL
7. GLOBAL PREMIUM ALCOHOL MARKET BY GEOGRAPHY
7.2. North America
7.3. South America
7.4.3. United Kingdom
7.5. Middle East and Africa
7.5.1. South Africa
7.5.2. Saudi Arabia
7.6. Asia Pacific
7.6.3. South Korea
8. COMPETITIVE ENVIRONMENT AND ANALYSIS
8.1. Major Players and Strategy Analysis
8.2. Emerging Players and Market Lucrativeness
8.3. Mergers, Acquisitions, Agreements, and Collaborations
8.4. Vendor Competitiveness Matrix
9. COMPANY PROFILES
9.2. Pernod Ricard
9.3. TITO’S HANDMADE VODKA
9.4. HITEJINRO CO., LTD
9.5. Brown Forman Corporation
9.6. Bacardi Limited
9.7. Tanduay Distillers, Inc
9.8. Allied Blenders and Distillers Pvt. Ltd. (ABD)
9.9. Guizhou Moutai Wine Co., Ltd.
9.10. Alliance Global Group, Inc. (Emperador)
TITO’S HANDMADE VODKA
HITEJINRO CO., LTD
Brown Forman Corporation
Tanduay Distillers, Inc.
Allied Blenders and Distillers Pvt. Ltd. (ABD)
Guizhou Moutai Wine Co., Ltd.
Alliance Global Group, Inc. (Emperador)
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