Market Insights Consumer Alcoholic Drinks

Spirits - EU-27

EU-27

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to US$37.9bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$19.0bn in 2024.
Revenue, combined amounts to US$56.9bn in 2024.
The revenue, at home is expected to grow annually by 2.42% (CAGR 2024-2028).
In global comparison, most revenue, at home is generated in China (US$150,400m in 2024).
In relation to total population figures, the average revenue per capita, at home of US$84.59 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 2,079.0m L by 2024.
Volume, out-of-home is expected to amount to 285.1m L in 2024.
Volume, combined is expected to amount to 2,364.0m L in 2024.
The Spirits market is expected to show a volume growth, at home of -0.5% in 2025.
The average volume per person, at home in the Spirits market is expected to amount to 4.65L 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 EU-27 has been experiencing significant growth in recent years. Customer preferences for premium and craft spirits, along with the rise in cocktail culture, have contributed to this trend. Additionally, local special circumstances and underlying macroeconomic factors have played a role in shaping the market. Customer preferences in the Spirits market in EU-27 have shifted towards premium and craft spirits. Consumers are increasingly seeking high-quality products and are willing to pay a premium for them. This trend is driven by a desire for unique and artisanal offerings, as well as a growing interest in supporting local producers. Craft distilleries have gained popularity, offering a wide range of innovative and small-batch spirits that cater to individual tastes and preferences. Furthermore, the rise of cocktail culture has fueled demand for spirits that can be used in mixology, such as gin and vodka. Trends in the market also reflect global and regional developments. The growing popularity of whisky, particularly Scotch whisky, has been a significant trend in the EU-27 market. Whisky has gained a reputation as a sophisticated and premium spirit, appealing to a wide range of consumers. Additionally, the demand for flavored spirits, such as flavored vodka and flavored rum, has been on the rise. These products offer a unique and refreshing twist on traditional spirits, attracting a younger demographic. Local special circumstances have had an impact on the Spirits market in EU-27. Each country within the EU-27 has its own unique drinking culture and preferences. For example, countries like France and Italy have a strong tradition of producing and consuming spirits, such as brandy and grappa. These local preferences influence the types of spirits that are popular in each country. Additionally, regulatory frameworks and tax policies vary across the EU-27, which can affect the availability and affordability of certain spirits. Underlying macroeconomic factors have also contributed to the growth of the Spirits market in EU-27. The overall economic stability and increasing disposable income in the region have allowed consumers to indulge in premium and craft spirits. Additionally, the growth of tourism in the EU-27 has created opportunities for the spirits industry. Tourists are often interested in experiencing local culture and trying regional spirits, which boosts sales and promotes the market. In conclusion, the Spirits market in EU-27 is experiencing growth due to customer preferences for premium and craft spirits, the rise of cocktail culture, local special circumstances, and underlying macroeconomic factors. The market is expected to continue evolving as consumer tastes and preferences evolve, and as new innovations and trends emerge.

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.