Luxury Wines and Spirits Market Size was valued at USD 824.6 billion in 2022. The luxury wines and spirits market industry is projected to grow from USD 867.9 Billion in 2024 to USD 1179.8 billion by 2030, exhibiting a compound annual growth rate (CAGR) of 5.25% during the forecast period (2024 - 2030). During the forecast period, some of the major market drivers projected to propel expansion for luxury wines and spirits are the rise in the number of bars and pubs, the adoption of luxury goods, and rising living standards.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The intake of this beverage is now more likely to be linked to a wealthy and opulent lifestyle, which encourages market expansion for luxury wines and spirits. Customers in the major industrialized nations are intrepid and eager to purchase a wide range of high-quality goods. Manufacturers emphasize introducing several premium and sensory brands in the market as consumers become "wine connoisseurs," experts in the evaluation of taste. Premiumization is a component of prevailing consumer trends, bringing in long-term revenue from all over the world. Furthermore, younger generations and less seasoned drinkers worldwide will have more opportunities to taste and enjoy alcohol in the coming year's thanks to the recent introduction of canned products by businesses like Sula Vineyards Pvt. Ltd. and Ardagh Group S.A. Additionally, canned alcohol is more readily available, affordable, and popular than ever. It is predicted that this will lead to a new trend in the market and among drink consumers. Thus, this factor drives the market CAGR for luxury wines and spirits.
Furthermore, the number of individuals in major developing countries like India, China, and South Africa who live paycheck to paycheck or on less than $1,200 a month is declining as these economies grow. In other words, the number of people with purchasing power is growing. China recently overtook the US to claim the title of the richest nation in the world. China now has $514 trillion in total wealth. Additionally, nations like Bangladesh and India are experiencing rapid increases in per capita wealth. Bangladesh's per capita income increased by 10% in the next fiscal year to an all-time high of $2,227. In 2019–20, it was roughly $2,064. In addition, it is predicted that India's per capita income will rise to $1850 by 2023.
However, numerous wine bars and clubs are opening up due to rapid modernization to meet the growing demand for alcoholic beverages. In 2021, there were over 43,000 wine stores in the United States, an increase of 1.3%. Furthermore, the vibrant nightlife of nations like the United States, the United Kingdom, and Spain is a sight to behold. According to an estimate, more than 60,000 pubs and clubs will operate in the United States by 2021. In the near future, the number is anticipated to increase even further. Thus, it is anticipated that this aspect will accelerate luxury wines and spirits market revenue globally.
The luxury wines and spirits market segmentation, based on type, includes wine, whisky, rum, brandy, vodka, gin, tequila and others. The vodka segment held the majority share in 2022 in the luxury wines and spirits market data. The availability of numerous vodka varieties, including flavored and gluten-free varieties, has increased the product's sales worldwide. Due to their superior quality, premium vodka brands, including Ketel One Vodka (Diageo), Grey Goose, Van Gogh Vodka, Tito's Vodka, Chase Vodka, Chopin, Belvedere, Absolut Vodka, Stolichnaya, Crystal Head, Three Olives', Zyr Vodka, and Cîroc are becoming more and more well-known worldwide. To appeal to a larger spectrum of consumers, businesses have started including novel flavors, such as marmalade, oak-smoked, coconut, berries, citrus, vanilla, and rhubarb.
The luxury wines and spirits market segmentation, based on distribution channel, includes food retail and food service. The food retail segment dominated the market growth for luxury wines and spirits in 2022 and is projected to be the faster-growing segment during the forecast period, 2022-2030. Due to its widespread presence in both urban areas and rural areas, there has been growth. The expansion of nightclubs and discos in urban areas. According to recent research, there are more than 43000 liquor outlets in the US. The amount has significantly increased by 1.3% compared to 2020
Figure 2: Luxury Wines and Spirits Market, by Distribution Channel, 2022 & 2030 (USD Billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study provides the market insights for luxury wines and spirits into North America, Europe, Asia-Pacific and Rest of the World. The Asia Pacific, luxury wines and spirits market, accounted for USD 377.7 billion in 2022 with a share of around 45.80% and is expected to exhibit a significant CAGR growth during the study period. This increase results from the growing adult and adolescent alcohol consumption trend. Asian countries have thriving economies, including China, India, and Indonesia. Increasing people's discretionary money.
Further, the major countries studied in the market report for luxury wines and spirits are: The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: LUXURY WINES AND SPIRITS MARKET SHARE BY REGION 2022 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America luxury wines and spirits market accounts for the second-largest market share. The demand for premium wines and spirits in Europe is further increased by changing lifestyles brought on by a significant increase in disposable money. Companies are acquiring large and local firms to broaden their product selection of premium wines and spirits in Europe to meet rising client demand. Moreover, US luxury wines and spirits market held the largest market share, and the Canada luxury wines and spirits market was the fastest growing market in the region.
Europe luxury wines and spirits Market is expected to grow at the fastest CAGR from 2022 to 2030. The increase in small wineries and advancements in wine quality are some of the main drivers fueling the market's rapid expansion. The market is being driven by rising per capita income, the spread of western culture, and rising consumer demand for luxury items. Further, the UK luxury wines and spirits market held the largest market share, and the Germany luxury wines and spirits market was the fastest growing market in the region.
Major market players are spending a lot of money on R&D to increase their product lines, which will help the luxury wines and spirits market grow even more. Market participants are also taking a range of strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the luxury wines and spirits industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.
One of the primary business strategies adopted by manufacturers in the luxury wines and spirits industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, luxury wines and spirits industry has provided medicine with some of the most significant benefits. The luxury wines and spirits market major player such as Diageo, LMVH, Pernod Ricard Bacardi, Edrington, Suntory Holdings Limited, Brown-Forman, United Spirits, Thai Beverage Public Limited Company, Hitejinro Co.Ltd and Davide Campari-Milano S.p.A.
American corporation The Brown-Forman Corporation is among the biggest in the wine and alcohol industries. Jack Daniel's, Woodford Reserve, Old Forester, Glenglassaugh, Finlandia, Herradura, GlenDronach, BenRiach, Korbel, and Chambord are just a few of the well-known brands it produces, all of which are sold all over the world. It is headquartered in Louisville, Kentucky. Southern Comfort and Tuaca were previously held by Brown-Forman before being sold off in 2016. In June 2022, in a cooperation, The Coca-Cola Company and Brown-Forman Corporation said they would introduce a ready-to-drink Jack Daniels and coke mixed cocktail. In late 2022, it is anticipated to debut in Mexico.
Also, a British firm that manufactures alcoholic beverages, Diageo plc is based in London, England. It runs out of 132 locations worldwide. It is a significant supplier of Scotch whisky and other alcoholic beverages. In January 2022, to open a new brewery in London called "Guinness at old Brewer's Yard," Diageo announced that they will invest £73 million. It is anticipated to debut in the fall of 2023.
Luxury Wines and Spirits Industry Developments
January 2022: On St. Patrick's Day, Jameson introduced a brand-new whisky with a citrus flavour. The end result features undertones of vanilla and almonds that are reminiscent of those in an Old-Fashioned drink. The product debuted in the U.K. in 2021, where it gained traction, and Jameson intends to release it across America this month with a suggested MSRP of $24.99. The introduction of this product domestically ushers in a new era for the whisky producer as the company continues to experiment with flavoured spirits.
April 2021: "Loyal 9 Cocktails," a US-based company that produces ready-to-drink spirits, was successfully acquired by English multinational company Diageo, which produces alcoholic beverages. The move is likely to be a full hit given the US's booming desire for ready-to-drink drinks. Sales of ready-to-drink cocktails increased by 79% in 2020 to $664 million.
| Report Attribute/Metric | Details |
| Market Size 2022 | USD 824.6 billion |
| Market Size 2024 | USD 867.9 billion |
| Market Size 2030 | USD 1179.8 billion |
| Compound Annual Growth Rate (CAGR) | 5.25% (204-2030) |
| Base Year | 2022 |
| Market Forecast Period | 2024-2030 |
| Historical Data | 2018 - 2021 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, Distribution Channels, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and Rest of the World |
| Countries Covered | The U.S, Canada, Germany, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Diageo, LMVH, Pernod Ricard Bacardi, Edrington, Suntory Holdings Limited, Brown-Forman, United Spirits, Thai Beverage Public Limited Company, Hitejinro Co.Ltd., Davide Campari-Milano S.p.A |
| Key Market Opportunities | Increased degree of health awareness to provide growth opportunity to the market growth for luxury wines and spirits |
| Key Market Dynamics | Rise in the number of pubs and bars to drive market for luxury wines and spirits Adoption of luxury products Increasing living standards |
Luxury Wines Spirits Market Highlights:
Frequently Asked Questions (FAQ) :
The luxury wines and spirits market size was valued at USD 824.6 Billion in 2022.
The luxury wines and spirits market is projected to grow at a CAGR of 5.25% during the forecast period, 2024-2030.
North America had the largest share in the market for luxury wines and spirits.
The key players in the market for luxury wines and spirits are Diageo, LMVH, Pernod Ricard Bacardi, Edrington, Suntory Holdings Limited, Brown-Forman, United Spirits, Thai Beverage Public Limited Company, Hitejinro Co.Ltd and Davide Campari-Milano S.p.A..
The vodka category dominated the luxury wines and spirits market in 2022.
The food retail had the largest share in the luxury wines and spirits market.
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