The sales of premium alcoholic beverage is witnessing significant growth, with a projected valuation of USD 430.38 billion in 2024. The market is expected to grow at a CAGR of 9.10% through 2034, reaching a high of USD 1,032.38 billion.
Key players focus on expanding their product range and distribution channels to cater to the growing demand for premium products. They are partnering with luxury hotels and restaurants to offer exclusive and high-end experiences to consumers. Some also use social media and influencer marketing to increase brand awareness and engagement.
The rising middle class in emerging economies such as India, China, and Germany has created a new market for premium liquor players. Consumers in these markets are ready to experiment with novel flavors and brands, creating the scope for various new entrants and existing manufacturers to drive market growth. The increasing popularity of craft beer and artisanal spirits is another factor propelling the beverage sector. Production of unique, authentic, and locally sourced liquor requires a new consumer base willing to have a premium taste.
The use of technology and social media is playing a key role in the growth of the premium alcoholic beverage market. The market is also advancing with augmented reality labels, personalized cocktails, and smart bottles that interact, offering a high degree of convenience and accessibility to consumers.
The market faces challenges, such as increasing awareness and concern about health among consumers, competition from alternative markets, and government regulations and taxes that make it difficult for companies to produce and sell their products.
“Increasing urbanization, expanding distribution networks, and growing awareness about health benefits of certain alcoholic beverages is a foreseeable trend in the premium liquor market,” says Nandini Roy Choudhury, Client Partner at Future Market Insights.
Key Takeaways from the Market Study
Whiskey tops the alcohol type with an expected market share of 23.50% for 2024.
Bottles are the preferred packaging format for premium alcoholic beverages, with an anticipated market share of 38.70% for 2024.
The premium alcoholic beverage market in Japan is projected to inflate at a CAGR of 7.30% through 2034.
The premium alcoholic beverage industry in China is anticipated to develop at a CAGR of 6.90% through 2034.
The premium alcoholic beverage industry in India has the potential to increase by 6.80% CAGR through 2034.
The premium alcoholic beverage industry in the United States is estimated to rise at 5.20% CAGR through 2034.
The premium alcoholic beverage market in Germany is predicted to rise by 4.60% CAGR through 2034.
Competitive Landscape
Premium alcoholic beverage manufacturers and key players are focusing on expanding their product range and distribution channels. Key players are also launching direct-to-consumer sales channels to reach a wider audience. Manufacturers are widening their reach to offer high-end experiences for consumers. Key companies like Bacardi Limited, Diageo Plc, Pernod Ricard SA, Gruppo Campari, The Brown-Forman Corporation, The Edrington Group, Heineken N.V., Anheuser-Busch Companies, LLC, and Carlsberg A/S are widening the visibility of the market.
Recent Developments:
In April 2024, Coca-Cola India entered the alcohol market with Lemon-Dou, a ready-to-drink alcoholic beverage combining shochu and lime, marking the company’s first foray into alcoholic beverages in India.
Radico Khaitan launched its premium Jaisalmer Indian Craft Gin in July 2023, expanding its product line and remaining competitive against brands like Bombay Sapphire despite a 15% decline in fourth-quarter profits due to rising input costs.
Key Companies in the Market
Bacardi Limited
Diageo Plc
Pernod Ricard SA
Gruppo Campari
The Brown-Forman Corporation
The Edrington Group
Heineken N.V.
Anheuser-Busch Companies, LLC
Carlsberg A/S
Miller Coors
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