Distilled Spirits Market Is Estimated To Witness High Growth Owing To Increasing Consumption By The Millennial Population
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| Distilled Spirits Market |
The distilled spirits market
encompasses a variety of alcoholic beverages produced by distilling fermented
grain, fruit, or vegetal mash. Popular product categories include whiskey, rum,
gin, vodka and tequila. Distilled spirits are consumed for pleasure and
socializing and also used in cocktails and mixed drinks. The global distilled
spirits industry is substantial, generating sizeable economic activity and tax
revenues worldwide.
The global distilled spirits
market is estimated to be valued at US$
36.86 Mn in 2024 and is expected to exhibit a CAGR of 5.4% over the forecast period 2024 to 2031, as highlighted
in a new report published by Coherent Market Insights.
Distilled spirits production
involves fermenting raw materials such as grains, vegetables or fruits in vats
before distilling the mixture in stills, a process that increases the alcohol
concentration. Common distilled grains are corn, rye, barley and wheat, while
popular fruit bases include grapes, apples and sugarcane. The industry offers a
variety of product types distinguished by their base ingredients and production
methods, catering to diverse drinker palates and budgets. Major distilled
spirits categories include rum, vodka, gin, whiskey and tequila.
Market Dynamics:
Rising preference for premium
alcoholic beverages is a major driver boosting growth of the global distilled
spirits market. Consumption of super-premium and craft varieties is gaining
traction among affluent drinkers seeking unique flavors, higher alcohol content
and artisanal provenance. Craft distilleries producing small-batch spirits with
distinctive taste profiles have grown in popularity.
Another factor propelling the
market is growth in cocktail culture. Mixed drinks prepared with inventive
spirit combinations have become a trend in bars and restaurants. Distilled
spirits represent a key ingredient in many classic and contemporary cocktails.
Improving lifestyles and rising disposable incomes especially in developing
countries are enabling more consumers to savor premium cocktails featuring
high-quality distilled alcohols.
Swot Analysis
Strength: The distilled spirits
market has seen immense popularity worldwide owing to its extensive consumption
across social gatherings and occasions. Strong distribution networks of leading
players ensures wide availability of products. Innovation and experiementation
in flavors is expanding consumer appeal.
Weakness: Strict regulations and
taxation policies on alcohol sales in various countries can hamper market
revenues. Rising health awareness is pushing consumers towards reduced alcohol
intake or quitting completely. Higher dependence on agricultural commodities
makes the market vulnerable to supply chain disruptions.
Opportunity: Emerging economies
in Asia Pacific and Latin America are witnessing rising disposable incomes and
westernization, augmenting the demand for premium spirits and cocktails.
Digital marketing initiatives can help players penetrate untapped regional
pockets. Product launches targeting the female demographic present new
opportunities.
Threats: Factors like high
unemployment and economic downturn negatively impact consumer spending power
and demand for luxurious goods. Underage drinking continues to be a social
concern curtailed by stringent promotion restrictions. Rising competition from
alternative beverages threatens market consolidation.
Key Takeaways
The Global
Distilled Spirits Market Size is expected to witness high growth over
the forecast period driven by rising socialization trends and experimental
flavor launches.
Regionally, the North America
segment holds the major revenue share currently owing to high per-capita
alcohol consumption in countries like the US and Canada. However, Asia Pacific
is likely to surpass other regions during the projection years supported by
growing expenditure ability of urban populations in China, India and Southeast
Asian nations easing cultural inhibitions regarding alcohol usage.
Key players operating in the distilled spirits market are Coloplast
Corp, ConvaTec Inc., and Hollister Incorporated. These companies have
established brands and global footprints enabling leadership positions.
However, they face fierce competition from regional and private label
manufacturers. Strategic collaborations for product innovation and expansion
into high potential markets will be crucial for sustaining growth.
Get More Insights Here
https://www.newsstatix.com/distilled-spirits-market-size-share-growth-outlook-2023/
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