Spirits - Iceland | Statista Market Forecast

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to US$28.1m in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$26.0m in 2024.
Revenue, combined amounts to US$54.2m in 2024.
The revenue, at home is expected to grow annually by 0.77% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated China (US$146bn in 2024).
In relation to total population figures, the average revenue per capita, at home of US$74.54 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 545.7k L by 2024.
Volume, out-of-home is expected to amount to 161.6k L in 2024.
Volume, combined is expected to amount to 707.3k L in 2024.
The Spirits market is expected to show a volume growth, at home of -2.6% in 2025.0.
The average volume per person, at home in the Spirits market is expected to amount to 1.45L in 2024.

Definition:

The Spirits market includes alcoholic beverages that have been produced through the distillation of wine, fermented fruits, or grains. Due to the distillation process, the alcohol content of spirits is much higher than that of most wines and beers, typically ranging from 20% to 50% alcohol by volume (ABV).

Structure:

The Spirits market is divided into 8 markets:

The Whisky market encompasses spirits on a grain basis that have been aged in wooden casks for a duration of at least three years.
The Vodka market encompasses spirits based on grain and/or potatoes.
The Rum market encompasses spirits based on sugar cane.
The Gin market encompasses spirits based on juniper berries.
The Brandy market encompasses spirits based on fermented fruit juice.
The Tequila market encompasses spirits made primarily from the blue agave plant (Agave tequilana) in Mexico.
The Soju market encompasses the Korean distilled beverage, Soju, which is traditionally made from rice, barley, or sweet potatoes.
The Liqueurs & Other Spirits market encompasses all other spirits not previously mentioned as well as Ready-to-Drink (RTD) cocktails.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per liter, as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Diageo (e.g., Johnnie Walker, Smirnoff, and Tanqueray), Pernod Ricard, and Kweichow Moutai.

Whisky, such as Jack Daniel's Tenessee Whiskey
Vodka, such as Absolut Vodka
Rum, such as Bacardi Rum
Gin, such as Ginebra San Miguel
Brandy, such as Ararat Brandy

Wine, such as Red Wine
Beer, such as Budweiser
Non-Alcoholic Spirits, such as Tanqueray 0.0

The Spirits market in Iceland has experienced significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: Customers in Iceland have shown a growing interest in premium and craft spirits. This can be attributed to a shift towards quality over quantity and a desire for unique and artisanal products. Consumers are increasingly willing to spend more on higher-end spirits that offer a superior taste and experience. This trend is not unique to Iceland, but reflects a global shift towards premiumization in the spirits market.

Trends in the market: One of the key trends in the Icelandic spirits market is the rise of local distilleries. In recent years, there has been a surge in the number of small-scale distilleries producing Icelandic spirits. These distilleries often focus on using local ingredients and traditional production methods to create unique and authentic products. This trend has been driven by a growing interest in supporting local businesses and a desire for products with a strong sense of place. Another trend in the market is the increasing popularity of flavored spirits. Flavored spirits, such as fruit-infused vodkas and botanical gins, have gained traction among Icelandic consumers. These products offer a more diverse and innovative flavor profile, appealing to those looking for new and exciting taste experiences. The rise of flavored spirits can be seen as a response to changing consumer preferences and a desire for variety in the market.

Local special circumstances: Iceland's unique geographical location and natural resources have played a significant role in shaping the spirits market. The country's pristine environment and abundant natural resources, such as pure glacial water and native botanicals, provide a distinct advantage for Icelandic distilleries. These natural ingredients contribute to the production of high-quality spirits with a unique flavor profile, appealing to both domestic and international consumers. Furthermore, Iceland's tourism industry has also had an impact on the spirits market. The country's growing popularity as a tourist destination has led to an increase in demand for local products, including spirits. Tourists are often drawn to the authenticity and uniqueness of Icelandic spirits, seeking to bring home a taste of their travel experience. This has created opportunities for local distilleries to expand their customer base and increase sales.

Underlying macroeconomic factors: The overall economic stability and increasing disposable income in Iceland have also contributed to the growth of the spirits market. As the economy has improved, consumers have become more willing to spend on luxury and premium products, including spirits. This has created a favorable environment for the development of the premium spirits segment in Iceland. In conclusion, the Spirits market in Iceland has experienced significant growth due to changing customer preferences, emerging trends, and local special circumstances. The rise of premium and craft spirits, the emergence of local distilleries, the popularity of flavored spirits, and the influence of Iceland's unique natural resources and tourism industry have all contributed to the market's development. Additionally, the overall economic stability and increasing disposable income in Iceland have created a favorable environment for the growth of the spirits market.

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.

This report presents a comprehensive analysis and additional information on the Consumer market, in a PDF format.

The term “spirits” refers to an alcoholic beverage that has been distilled, contains no added sugar, and has at least 20 percent alcohol by volume. The term is derived from the medieval practice of alchemy and refers to the essential liquid element obtained from a substance through distillation, the “spirit” of the substance, so to speak. Popular spirits include whiskey, rum, vodka, tequila, and gin, among others.