The global luxury alcoholic
drinks market size is estimated to be $1,027.8 billion in 2022 and is anticipated to
reach $1,926.8 billion by 2030, registering a CAGR of around 5% during the
forecast period of 2022-2030.
drinks are fine quality and premium priced alcohol drinks. These include wines,
beers, ciders, distilled spirits and others. These products are generally
consumed during occasions such as marriages, parties, social gatherings, and
other celebrations and are often considered as a status symbol among the
affluent population. Luxury wine is the most popular alcoholic drink preferred
by consumers across the globe due to its rich taste, aroma and quality.
COVID-19 is said to have reshaped the worldwide drinking culture in 2021 as it led to the expansion of ecommerce, premiumization and the augmenting need
for convenience in product formats among consumers across the globe. Adding to
that, the wealthier segments of the population across various regions were left
with extra disposable incomes due to the implementation of lockdowns resulting
in traveling restrictions across vacation destinations around the globe. As a
result, the global sales of tequila, vodka and liqueurs soared in 2021. The
housebound consumers also opted to spend lavishly on high-end spirits and wines.
The lockdown imposed across the globe also resulted in major disruption in the
traditional distribution channels and on premise sales of alcohol. However, the
online sales and direct to home delivery channels witnessed a steady boost
during this period.
aspiration among consumers in developing regions to consume premium quality
luxury products due to their increasing living standards, the growing
consumption of luxury alcohol products
at various occasions and celebrations, the increasing acceptance of wines and
spirits consumption, the surging popularity of vintage wines for special
occasions, the rising trend of premiumization and the escalating social media trends in developed countries influencing
millennials and Gen Z toward spending more on premium products are primary the
primary factors driving the growth of the global luxury alcoholic drinks
Additionally, the increasing disposable incomes of
people, the growing popularity of authentic high-end alcoholic drinks
among the millennial population, the burgeoning sales of cocktails in the
developed regions and the rising number of wineries across the globe are some of
other factors contributing immensely towards the growth of the market.
rising number of luxury alcoholic brands, the escalating investment in R&D
and offers like subscription boxes and UberEats-style alcohol delivery
services by key market players and the surging inclination of consumers towards
seeking clarity for sustainable manufacturing practices are expected to further
create ample growth opportunities for the global luxury alcoholic drinks market
during the forecast period of 2022-2030.
However, the stringent government policies on advertisements and
distribution of wines and spirits due to the rising number of consumers
suffering from alcohol addiction and the increasing shifting of health-conscious
consumers towards low-alcohol or no-alcohol beverages from traditional
alcoholic beverages are anticipated to hamper the growth of the market up to
some extent during the forecast period.
LUXURY ALCOHOLIC DRINKS MARKET SEGMENTATION
According to type,
the spirits segment accounted for the largest share in the global luxury
alcoholic drinks market in 2021 and is likely to maintain its dominance
throughout the forecast period. This can be attributed to the rising popularity
of cocktail drinks. The vodka sub-segment held the largest revenue share of
more than 25.0% in 2021. The tequila sub-segment
on the other hand is anticipated to attain the highest CAGR of 12% from 2023 to
2030. The rapidly surging popularity of tequila among consumers and the
shifting consumption trend of tequila from conventional consumption to luxury
cocktails are expected to encourage the producers across the globe to invest
heavily in premium tequilas which in turn will lead to the growth of the
distribution channel, the on-trade segment accounted for more than 55.0% share in
the global luxury alcoholic drinks market in 2021. It is expected to further
retain its dominance in the market over the forecast period. The off-trade segment is expected to attain
the highest CAGR of over 11% during the forecast period of 2023 to 2030. This
can be attributed to the growing number of large supermarket chains along with
their in-store promotions in the emerging economies across the globe.
region accounted for the largest share in the global luxury alcoholic drinks
market in 2021 followed by North America and is expected to further retain its
dominance in the market over the forecast period of 2022-2030. The growth in
the region can be attributed to the increasing presence of key players, the changing
lifestyles of people owing to their rising disposable incomes, the rising
number of company acquisitions, the growing number of luxury brands and the
soaring sales of cocktails in the
developed economies of the region. Germany and France are among the major
contributors to the region.
The North American region held the second largest share in the global
luxury alcoholic drinks market in 2021 and is expected to further maintain the
trend over the forecast period. This can be attributed to the rapidly expanding
tequila market in the U.S., the growing range of premium spirits, the rising
affluent population coupled with the
growing trend of premiumisation and the shifting drinking patterns of people in the region. U.S. and Canada are
among the major contributors to the region.
The Asia Pacific
region is expected to be witness growth at 25% and is expected to be the
fastest growing regional market for luxury alcoholic drinks during the forecast
period. Factors attributable to the growth of the market in the region include
the proliferating use of social media, the surging health awareness, the
escalating bar culture, the increasing disposable incomes, the augmenting sales
of high-end spirits, the growing middle-class population and the rising number
of urban dual-income families in the developing region especially in India.
China, India, New Zealand, Hong Kong, Australia and South Korea are among the major
contributors to the growth of the region with China and India leading from the
KEY COMPANIES IN LUXURY ALCOHOLIC DRINKS MARKET
Tanduay Distillers Inc.
TITO’S HANDMADE VODKA
HITEJINRO CO. LTD
Brown Forman Corporation
Allied Blenders and Distillers Pvt. Ltd.
Guizhou Moutai Wine Co., Ltd.
Alliance Global Group Inc.
Thai Beverage Public Company Limited
Suntory Holdings Limited
LVMH Moët Hennessy - Louis Vuitton