PUBLISHER: Allied Market Research | PRODUCT CODE: 1298416
PUBLISHER: Allied Market Research | PRODUCT CODE: 1298416
The global bourbon spirits market was valued at $7,774.1 million in 2021 and is projected to reach $12,781.6 million by 2031, growing at a CAGR of 5.0% during the forecast period from 2022 to 2031. North America is one of the major consumer regions in the global marketplace that solely accounted for more than 35% of the overall bourbon spirits market in 2021. The impact of COVID-19 has been unprecedented and impeding the market growth throughout the pandemic period. It is expected that the market will set back to its previous growth trend over the next couple of years.
The market growth is driven by the rise in demand for premium and luxury whiskey as a result of premiumization and socialization. The rise in demand for high-premium whiskeys due to changes in consumer tastes, rise in standard of living globally, and inclination towards innovative products is expected to drive the growth of the global bourbon spirits market during the forecast period. In order to engage tech-savvy young consumers that seek greater value for money, more personalization, and integrated digital access, luxury whiskey variants such as American whiskey and Bourbon whiskey have started to develop accurate social media platforms to expand consumer reach. Furthermore, millennia also value quality, authenticity & provenance, and hence are willing to pay more to enjoy premium bourbon whisky.
Premiumization remains to be one of the major factors projected to drive the growth of the alcoholic beverages industry. The demand for premium cocktails is attributed to increase in the trend of mixed drinks and crafted cocktails. Pre-mixed and fresh cocktail manufacturers are utilizing natural colorants & flavors and favoring premium ingredients to meet the natural appeal of the drink. Bourbon spirits/whiskeys are popular for their natural taste and offer earthy appeal to the drink and most of the on-trade counters are utilizing a huge quantity of bourbon spirits to make premium drinks.
According to the report published by the Bacardi Cultural Insights Network 2021, 37% of bartenders voted spirits as the top mixer globally that premiumize cocktails and other alcoholic drinks. The emergence of modern on-trade channels in developing economies and the upsurge in disposable income further ensure higher consumption of spirits-based cocktails, thus contributing toward the growth of the global bourbon spirits market.
The hunt for authenticity while drinking has been possible due to improved awareness of the service being provided to offer bourbon whisky in the on-trade counters and the rise in the spending power of consumers in developing economies. Moreover, consumers continue to support quality over quantity, which is directly positively impacting the sales of premium spirits such as bourbon spirits. According to the Distilled Spirits Council of the U.S. (DISCUS) 2021, the sale of RTD (ready-to-drink) spirits rose by 39.1%, and the trend is expected to continue over the next five years. The steadily increasing consumption of the growing premium & luxury spirits category and rising rapid modernization in developing economies is further expected to boost the demand for premium bourbon spirits products in the market.
Moreover, the economic improvement of the middle-class population influences buying preferences across the globe, which, in turn, contributes toward the growth of the market. According to the data by Drizly 2020 (an alcohol e-commerce platform in the U.S.), spirits were the second largest category in terms of premium in the overall alcoholic beverages market. The economic improvement of the middle-class population has influenced their buying preferences across the globe. Thus, the evolving preferences to search for premium appeal are expected to continue to drive the growth of the global bourbon spirits market.
The bourbon spirit market is segmented into type, ABV, distribution channel, and region. By type, the market is segregated into wheated, barrel finished, barrel select, and others. Depending on alcohol-by-volume (ABV), it is segmented into 40-45%, 46-55%, and 56% and above. Based on distribution channel, it is fragmented into on-trade (hotel, bar, pub, and others) and off-trade (supermarkets/hypermarkets, convenience stores, specialty stores, online retailers, and others). Region-wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
Some of the key players profiled in the bourbon spirits market analysis include: Suntory Holdings Limited, Brown-Forman Corporation, MGP Ingredients, Inc., Laws Whiskey House, Conecuh Brands, LLC, Distiller's Way, LLC, Sazerac Company, Inc, Kirin Holdings Company, Limited, Bacardi Limited., Michters Distillery LLC., Heaven Hill Brands, Nashville Barrel Company, Bardstown Bourbon Company, Wyoming Whiskey, Inc., and Jos. A. Magnus & Co.
Bourbon Spirits Market Segments