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Speciality Spirits Market Overview
The Speciality Spirits Market size is estimated to reach $44660 Million by 2030. Furthermore, it is poised to grow at a CAGR of 4.80% over the forecast period of 2024-2030.
Speciality spirits is an upcoming product category launched by the stalwarts of liquor manufacturers. The following category of spirits offers more than just “alcohol” to the targeted population. It is also a distilled spirits, as it follows the same nomenclature of manufacturing. Moreover, it is a blend of alcohol with other varieties of nuts, fruits, or any other ingredient which will add nutritional value to the alcoholic beverage, as well as serve the component of the alcohol will remain constant. The consumer trends are now favoring unusual product offerings, and a trend known as DIY- Do It Yourself has further increased the demand for speciality spirits. Additionally, they also contain varieties where there is no alcohol and is marketed as non alcoholic spirits.
Thereby, the health benefits offered by the speciality spirits along with the preferential change to adopt “flavored alcoholic drinks” are some of the factors that are driving the speciality spirits market during the forecast period of 2024-2030
Speciality Spirits Market Report Coverage
The report: “Speciality Spirits Market Forecast (2024-2030)”, by IndustryARC covers an in-depth analysis of the following segments of the Speciality Spirits Market.
By Product Type- Baijiu, Shochu, Sake, Soju, Cachaca, and Others.
By Distribution Channel- Business to Business and Business to Consumers.
By Geography- North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia, and New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America), and Rest of the World (the Middle East, and Africa)
Key Takeaways
- Geographically, North America held the largest revenue share in the year 2021. It is owing to the rising trend for adopting alcoholic beverages with certain nutritional benefits. Moreover, the unusual taste preference for alcoholic beverages has been predominantly found in this region. However, Asia-Pacific shows optimal growth opportunities in the projected period. It is due to the rising trend of premiumization in speciality spirits and a rising younger population to obtain products from fair trade practices.
- The health benefits offered by the speciality spirits in treating and preventing cardiovascular diseases will act as a driver for the market. However, high production costs compared to alcoholic beverages will serve as a challenge for the market.
- Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Speciality Spirits report.
Speciality Spirits Market Segment- By Geography (%) for 2021
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Speciality Spirits Market Segment Analysis- By Product Type
The specialty spirit market can further be segmented into Baijiu, Shochu, Sake, Soju, and Cachaca on the product types. Baijiu held a dominant market share in the year 2021. It is owing to an efficient production method and a traditional value with the following drink in the regions. In addition, baijiu exhibits chemical properties that can help reduce the uric acid concentration and can also help in improving the lipid profiles in the younger population.
Moreover, the Baijiu segment is estimated to be the fastest-growing, with a CAGR of 5.6% over the forecast period of 2022-2027. It is owing to the launch of various product offerings and the ability to create more product classifications. Sauce Flavor Baijiu is a recent launch that exhibits a taste similar to soy sauce and also emits several amino acids, which can help in reducing the prevalence of cardiovascular diseases. Strong flavor baijiu exhibits a strong after taste, while light flavor baijiu has a refreshing after taste. The following enhancements and customizations according to the dynamic demand will help this segment.
Speciality Spirits Market Segment Analysis- By Distribution Channel
The speciality spirits market can be further segmented into B2C and B2B channels based on the distribution channels. The B2C segment held a dominant market share in the year 2021. It is owing to the stringent lockdowns imposed throughout the world because of the pandemic. Thereby shutting down the majority of restaurants and bars. Furthermore, speciality spirits have been used to make loaves of bread, cakes, and other delicacies that were predominantly made in homes due to trends such as DIY. Moreover, the B2C segment operated under government permissions and allowed the consumers an on-door delivery of such spirits at a discounted price.
However, the B2B segment is estimated to be the fastest-growing segment with a CAGR of 5.9% over the forecast period of 2022-2027. It is owing to the opening up of the economies, along with new product launches, which allows the speciality spirits to be used in place of ardent spirits. Manufacturers are now launching products with ABV up to 50% to counter the ardent spirits.
Speciality Spirits Market Segment Analysis- By Geography
The Speciality Spirits market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held the largest share of 40% as compared to the other regions in 2021. It is owing to the rising cardiovascular diseases and other pulmonary heart ailments caused by excessive drinking, which has now been seen to be substantially substituted by speciality spirits. Moreover, the regions are seeing a surge in adopting products that have high nutritional value than the preexisting rivals.
However, Asia-Pacific is estimated to offer lucrative opportunities in the speciality spirits market. The region's younger generation is growing at a rate faster than other developed regions, with the following uprising the trend for seeing premiumization in the offered drinks is projected. The following will help the market to grow during the forecast period.
Speciality Spirits Market Drivers
The rising preference for adopting “healthy” alcoholic drinks has driven the specialty spirit market.
Predominantly, Alcoholic drinks were related to being a supportive case for developing cardiovascular diseases. Moreover, the matters related to cardiovascular diseases in prominent regions such as the US that has seen a steady YoY growth of 1.25% in terms of diabetes and other ailments. Furthermore, CDC estimates that 10 million deaths worldwide are due to hypertension. Therefore, alcoholic drinks are replaced by speciality spirits which have been modified to the dynamic customer needs. Cloves, nuts, and herbs are some of the ingredients that are now added to make the beverages mitigate traditional alcohol risks. These ingredients are proven to have medical benefits.
The traditional linkages with the speciality spirits with the populations have been a market driver.
The speciality spirits have had a traditional backing from various regions. Such as Baijiu, a spirit hailing from the Asia Pacific region of China. Moreover, the following region consumes Baijiu at a rate of 9.43 L/ year(individual) which is higher than the mean of the US, which has a consumption of 8.2L/ year(individual). Most of the drinks are made from the staple produce of the region, such as rice, barley, and sorghum, and have cultural weightage and attachments. Furthermore, the populations have adopted and reformed the base products according to consumer needs, which have continued to drive the market.
Speciality Spirits Market Challenges
The cost of speciality spirits is higher than traditional alcoholic drinks impeding market growth.
A challenge that speciality spirits are facing is the cost at which the products are offered to prospective consumers. For example, the cost to procure a 15% ABV in the form of wines can be anywhere from $10 to $15 but purchasing a specialty spirit can cost someone between $22-and $25. Thus, although the application of speciality spirits in daily lives is more intensive than other liquor-oriented beverages, the growth potential is severely hampered by the impending costs.
Speciality Spirits Industry Outlook
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Speciality Spirits Market. The top 10 speciality spirits companies are-
- RB Tatuzinho 3 Fazendas,
- Hite Jinro,
- Lotte,
- Luzhou Laojiao,
- Sanwa Shurui,
- Takara Shuzo,
- Fazenda Futuro,
- Prohibition Spirits Distillery,
- International Wines & Craft Beer and Craft Distillers
- Campari Group
Recent Developments
- In August 2020, Diageo acquired Aviation Gin LLC and Davos Brands LLC, which enriched its super-premium gin segment in the United States and is in line with Diageo’s strategy to acquire high growth brands with attractive margins that support premiumization.
- In January 2020, Italy’s Campari Group modified its Vermouth’s offerings across the globe. From earlier conceived as a cocktail mixer, has now been modified with low ABV content and a specialty spirit that has added herbs and other value nutrition to make it a stand-alone drink
- In January 2020, Danish producer Siwu launched “Siwu Akvavit.” The drink has a 40% ABV ratio and has been tripled and distilled with cumin and barley malt to provide nutritional benefits and compete with hard alcoholic drinks such as Vodka and Rum.
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