Market Insights Consumer Alcoholic Drinks

Spirits - Australia

Australia

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to AU$5.7bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to AU$1,546.0m in 2024.
Revenue, combined amounts to AU$7.2bn in 2024.
The revenue, at home is expected to grow annually by 3.82% (CAGR 2024-2028).
In global comparison, most revenue, at home is generated in China (AU$231bn in 2024).
In relation to total population figures, the average revenue per capita, at home of AU$213.10 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 52.5m L by 2024.
Volume, out-of-home is expected to amount to 7.8m L in 2024.
Volume, combined is expected to amount to 60.3m L in 2024.
The Spirits market is expected to show a volume growth, at home of 0.4% in 2025.
The average volume per person, at home in the Spirits market is expected to amount to 1.97L in 2024.

Key regions: Australia, Singapore, India, Worldwide, United States

Definition:

The Spirits market includes alcoholic beverages that have been produced through the distillation of wine, fermented fruits, or grains. Due to the distillation process, the alcohol content of spirits is much higher than that of most wines and beers, typically ranging from 20% to 50% alcohol by volume (ABV).

Structure:

The Spirits market is divided into 8 markets:

The Whisky market encompasses spirits on a grain basis that have been aged in wooden casks for a duration of at least three years.
The Vodka market encompasses spirits based on grain and/or potatoes.
The Rum market encompasses spirits based on sugar cane.
The Gin market encompasses spirits based on juniper berries.
The Brandy market encompasses spirits based on fermented fruit juice.
The Tequila market encompasses spirits made primarily from the blue agave plant (Agave tequilana) in Mexico.
The Soju market encompasses the Korean distilled beverage, Soju, which is traditionally made from rice, barley, or sweet potatoes.
The Liqueurs & Other Spirits market encompasses all other spirits not previously mentioned as well as Ready-to-Drink (RTD) cocktails.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per liter, as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Diageo (e.g., Johnnie Walker, Smirnoff, and Tanqueray), Pernod Ricard, and Kweichow Moutai.

Market

Region

Region comparison

Currency

Analyst Opinion

The Spirits market in Australia has experienced significant growth in recent years, driven by changing customer preferences and local special circumstances.

Customer preferences: Australian consumers have shown a growing interest in premium and craft spirits, as they seek unique and high-quality products. This shift in preferences can be attributed to the increasing sophistication of consumers and their desire for more diverse and authentic experiences. Additionally, there has been a rise in the popularity of cocktails and mixology, leading to an increased demand for spirits that can be used in creating innovative and exciting drinks.

Trends in the market: One major trend in the Australian Spirits market is the rise of locally produced spirits. Australian consumers are increasingly supporting local distilleries and are willing to pay a premium for spirits that are made in Australia. This trend can be attributed to a desire for products that are unique to the region and reflect the local terroir. Additionally, the popularity of locally produced spirits is also driven by a growing interest in sustainability and supporting local businesses. Another trend in the market is the increasing popularity of flavored spirits. Flavored spirits, such as flavored vodkas and gins, have gained traction among Australian consumers who are looking for new and exciting taste experiences. These flavored spirits offer a wide range of flavors, from traditional fruit flavors to more unique and exotic options. The popularity of flavored spirits can be attributed to their versatility in cocktails and their ability to appeal to a wider range of consumers.

Local special circumstances: Australia has a strong drinking culture, with spirits being a popular choice among consumers. This cultural factor has contributed to the growth of the Spirits market in the country. Additionally, the presence of a thriving bar and restaurant scene in major cities like Sydney and Melbourne has also played a role in driving the demand for spirits.

Underlying macroeconomic factors: The strong economy in Australia has contributed to the growth of the Spirits market. With a stable economy and high disposable income levels, consumers have more purchasing power to spend on premium and high-quality spirits. Furthermore, the growth of the tourism industry in Australia has also had a positive impact on the Spirits market, as tourists often seek out local spirits as souvenirs or to experience the local drinking culture. In conclusion, the Spirits market in Australia has experienced significant growth due to changing customer preferences, such as a preference for premium and craft spirits, as well as local special circumstances, such as a strong drinking culture and a thriving bar and restaurant scene. These trends are supported by underlying macroeconomic factors, including a strong economy and a growing tourism industry. As a result, the Spirits market in Australia is expected to continue growing in the coming years.

Methodology

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.