Spirits - G20

The Spirits market in G20 is experiencing significant growth and development, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Customers in the Spirits market are increasingly seeking premium and high-quality products. They are willing to pay a premium for spirits that offer unique flavors, craftsmanship, and a sense of exclusivity. This trend is driven by a growing middle class with higher disposable incomes, who are looking for more luxurious and indulgent experiences. Additionally, health-conscious consumers are gravitating towards spirits with natural ingredients and lower alcohol content, reflecting a desire for healthier options.

Trends in the market: One of the prominent trends in the Spirits market is the rise of craft and artisanal spirits. Consumers are showing a growing interest in small-batch, locally-produced spirits that offer unique flavors and a sense of authenticity. This trend is fueled by a desire for products with a story and a connection to the local community. Craft spirits also appeal to consumers who value sustainability and supporting local businesses. Another trend in the market is the increasing popularity of flavored spirits. Flavored spirits, such as fruit-infused vodkas and flavored liqueurs, are gaining traction among consumers who seek variety and novelty in their drinking experiences. These products cater to a younger demographic who are looking for innovative and exciting flavor profiles.

Local special circumstances: In the United States, the Spirits market is influenced by the cultural significance of whiskey and bourbon. American consumers have a strong preference for these spirits, which are deeply rooted in the country's history and tradition. The popularity of whiskey and bourbon is also driven by the rise of craft distilleries, which have gained a loyal following among enthusiasts. In Europe, the Spirits market is shaped by the rich heritage and tradition of spirits production. Countries like Scotland, Ireland, and France have a long-standing reputation for producing high-quality spirits, such as Scotch whisky, Irish whiskey, and Cognac. These spirits are sought after by consumers who appreciate the craftsmanship and expertise that goes into their production.

Underlying macroeconomic factors: The growth of the Spirits market in G20 is supported by favorable macroeconomic factors. Rising disposable incomes, urbanization, and changing lifestyles are driving consumer spending on luxury and indulgent products. Additionally, the growth of e-commerce and digital platforms has made it easier for consumers to access a wide range of spirits from around the world, further fueling market growth. In conclusion, the Spirits market in G20 is experiencing growth and development due to changing customer preferences, emerging trends, and local special circumstances. Consumers are seeking premium and high-quality spirits, driving the demand for craft and artisanal products. Flavored spirits are also gaining popularity among consumers looking for variety and novelty. Local special circumstances, such as the cultural significance of whiskey in the United States and the heritage of spirits production in Europe, further shape the market. Favorable macroeconomic factors, including rising disposable incomes and the growth of e-commerce, support the growth of the Spirits market in G20.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.