ID: MRFR/F-B & N/2432-CR | December 2020 | Region: Global | 110 pages
Flavored Spirits Market Research Report - Global Forecast till 2026
According to a recent survey, the Global Flavored Spirits Market is estimated to achieve a register CAGR of 4.28% and reach the total amount of approx. USD 32,768.7 Million by 2026. What are flavored distilled spirits? It is distilled alcoholic beverages, in which some specific flavor profile has been put together or added. 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.
The major channel to distribute flavored spirits are through foodservice as well as food retail channels. No doubt there has been an increasing demand for sweetened and flavored spirits. As per recent estimates, the global spirits market size is expected to expand at a high gait in the future times to come. The only way to maintain dominance in the growing global spirits market size is Product innovation
The growing foodservice industry is significantly contributing to the expansion of the global craft spirits market size. The emerging economies also drive the global spirit market. In addition, the only way to adopt is to become dynamic and continue to work towards the betterment of the flavored spirits/beverages. Many believe that surging demand for non-alcoholic beverages can also hamper the growth of the growing merchandise scenario.
COVID 19 Impacts and effects
The flavored alcoholic beverages market is also influenced by Covid19. Many organizations are continuously monitoring the impact of the COVID-19 pandemic on different industries. The great American spirit flavored market share has drastically influenced by COVID 19, in spite of the help from the government. The different elements of these comprehensive reports will help you analyze the effects in brief. The detailed study of the flavored spirits markets in recent times is able to identify the gap between the demand and supply of your interested market. Moreover, governmental intervention is necessary to improve the growing pace of the spirit’s market.
Companies are suffering in Europe because of increased tariff rates. The USA has recently increased the tariff on imported flavored spirits. The major brands are focusing on creating an elite soft drink that can be cherished both with and without alcohol. The steep decline of some of the brands is bad news for the American spirits flavors market post-COVID 19.No debate on the fact that smaller brands are suffering more.
The Global Flavored Spirits Market is estimated to register to grow in spite of all the hurdles. The food service industry is growing and so is the flavored spirits market. The major clients of the flavored alcoholic beverages market include mainstream Hotels, bars, and pubs which account for a bigger share of the sale of flavored spirits where they squander directly or as a base in cocktails.
In post-COVID 19 there will be a rise in the consumption of cocktails and mock tails at major social events including corporate conferences, and music concerts, these will be boosting the sale of flavored spirits. This trend is growing across the global market, majorly in developing countries such as China and India. People are adapting to the trend of dining out, which is gaining more popularity among youngsters, and people are not shy away from eating out at least four to five times a week.
As per MRFR analysis, the new cultural trend of dining out in developing countries is aimed to surpass the trend in developed countries such as the UK, France, and Italy. People are adopting new cultures, and they are open to experimenting with new food & beverage choices, and some changing lifestyles are also important drivers or the major factors driving the growth of flavored beverages.
In the US, as per recent data of the National Restaurant Association, the estimated sales of the restaurant industry in 2021 is likely to be USD 899 billion. Not only has this, the Federation of Indian Chambers of Commerce and Industry (FICCI) stated that the Indian food service industry is aimed to grow a CAGR of 10% from 2017 to 2022. Seeing the urgent demand for non-alcoholic beverages and the rising trends of non-alcoholic beverages, the manufacturers are concentrating on new product development strategies to sustain in the flavored alcoholic beverages market. Rising health awareness among the youth is also a significant opportunity for flavored beverage manufacturers.
The outbreak of COVID-19 has hard severely knocked out the growing pace of the flavored spirits market because of mandatory closures of restaurants, bars, and pubs across the globe, the profit share has fallen apart. It has disrupted the entire supply chain. Continuous lockdown created a negative impact. The major retailers, such as supermarkets & hypermarkets, and liquor stores, whose main job is selling flavored spirits have gone through acute shortage despite having demand in certain areas across the globe.
The American spirit is full-flavored and has many challenges. In Fact, the major global players are facing troubles. The whole spirits market has been segregated into food retail and foodservice. The foodservice segment will definitely dominate the global market and expand USD 20,300.3 million by the end of 2026
The distribution channel needs to be more empowered. As per the recent study, the food retail segment is estimated to register the highest CAGR of 4.31% during 2020-2026. The foodservice segment has a significantly higher market share of 62.08% in 2019 and forecasted to maintain its dominance. And flavored spirits are more dependent on the foodservice industry.
The global flavored spirits market is aimed to grow at a CAGR of 3.3% during the coming years in spite of the slowdown. According to past data, the global flavored spirits industry was valued at $384.2 billion in 2018 and is estimated to reach $478.4 billion in 2025, this is significant growth.
The flavored spirits are famous everywhere including U.S., Canada, Mexico in North America, Germany, Sweden, Poland, Denmark, Italy, U.K., France, Spain, etc. In the Asia Pacific market, the industry is surpassing all previous records. China and India are major players. The upstream value chain analysis can be done based on the estimated records. In Spite of the challenges the companies are facing globally but due to the strong supply chain, they will surpass all the hurdles. People love cherry flavored spirits and this trend is not going to stop!!
If you see the tip of the iceberg, the market has been divided into whiskey, rum, vodka, gin, and others. It is no doubt segmented on the basis of type, distribution channel, and regional wise sections. The vodka segment has the maximum market share in 2019, whereas the whiskey segment is expected to register the highest CAGR of 4.40% during the forecast period. Usually, Whiskey is a type of distilled alcoholic beverage created from fermented grain mash. There are plenty of grains, including barley, corn, rye, and wheat, used in the manufacturing of whiskey.
Few points based on distribution channels, the global flavored spirits market has been divided between foodservice and food retail. However, the food retail segment is further segmented into supermarkets & hypermarkets, specialty stores, and others.
The Flavored spirits are highly consumed across hotels, restaurants & cafes segments as well as pubs and bars. The companies are interested in increasing product innovations. But developing countries are growing faster.
Europe is the dominant player in the flavored spirits market. The European region accounted for a 37.38% share of the market in 2019. Germany is the most profitable for major spirit players. As per the current scenario, the spirit market in the region is projected to register a significant CAGR of 4.06% during the forecast between (post-COVID 19) 2020 to 2026. The processes like new product developments, partnerships, mergers, and acquisitions to increase the revenue of flavored spirits in the region between top players are vital for growth.
Competitive Landscape of flavored spirits market
The market players for the flavored spirits market are:
The major countries are:
Rest of Europe
Australia and New Zealand
Rest of Asia-Pacific
Rest of the World (RoW)
As per the share, the dominant players in the Global Flavored Spirits Market include Bacardi Limited (Bermuda), The Brown-Forman Corporation (France), Pernod Ricard (France), Diageo PLC (UK), Suntory Beverage & Food Limited (Japan), Constellation Brands, Inc. (US), Distell Group Limited (South Africa), William Grant & Sons (Scotland), Asahi Group Holdings, Ltd (Japan), and San Miguel Corporation (Philippines).
Frequently Asked Questions (FAQ) :
The projected value of the flavored spirit market will be USD 32,768.7 Million by 2026 by the end of 2028.
The growth rate of the flavored market is 4.31%, which is highly commendable.
The Nonalcoholic form of the flavored spirit market will get an optimum surge.