Luxury Wine & Spirit Market Size, Industry Analysis Report, Regional Outlook, Application Development Potential, Price Trends, Competitive Market Share & Forecast, 2021 – 2027
Report ID: GMI1981
Luxury Wine & Spirit Market size will witness significant growth due to increase in demand for applications in food and beverages industry. Rise in disposable income has enhanced the buying power of consumers, that in turn has helped them to opt for niche products. These have exceptional quality of raw materials that enhance customer satisfaction and spur its demand. Improved distribution channels of companies are anticipated to boost luxury wine & spirit market.
Use of technologies for improving fermentation process and aging process will provide consumers better experience. Premium pricing of products has improved profit margins of manufacturers. Rise in number of bars and pubs in urban areas are attracting young generation and attributed to propel luxury wine & spirit market growth.
There has been increase in health awareness regarding wines and institutes namely American Heart Association (AHA) has come up with its benefits for heart. AHA has stated that consuming them lowers the mortality rate by around 34%. Manufacturers have come up with variants including red and white that has given customers options to choose from. Its intake has spurred in social gatherings including parties and art exhibitions that have given positive outlook to luxury wine & spirit market.
These are alcoholic beverages made from various raw materials namely grapes, cherry and plums. These are fermented without adding any foreign ingredients and lead to formation of yeast that consumes sugar content of raw materials and converts it into ethanol and carbon dioxide. These are being consumed from ancient times and have its roots in ancient Greek and Egypt. Their variants depend on its constituents and time of fermentation.
Major restraint for luxury wine & spirit market is stringent government regulations for its sale in some part of the world. Its excess intake may lead to heart disease, diabetes, stroke and high blood pressure. Forgery, manipulation, adulteration and incidents of fraud in products have affected its sale and demand. Further, shifting of people from alcoholic beverages towards non-alcoholic may pose as a challenge in forecast period.
Based on products, luxury wine & spirit market is classified as wine and spirits. Wines accounts for major share owing to larger consumer base and low alcohol by volume content as compared to others. These are further divided into red, white, rose, fruit, starch based and honey. Among them red and white have major with easy availability and higher popularity.
Spirit has moderate share and is anticipated to register substantial growth during forecast period and classified into gin, whisky, rum, vodka, brandy, tequila, natural and flavoured. Vodka and whisky have significant categories and will grow due to growing popularity of cocktail drinks at social gatherings. Cognac and tequila are gaining popularity with growing pub culture and in turn will positively drive luxury wine & spirit market.
Based on distribution channel, luxury wine & spirit market is classified into wholesale, retail stores, department stores and online retailers. Whole sale have substantial share as both urban and semi urban population prefer them due to ease in availability and better comparison between products. There has been considerable increase in number of whole sale stores commercial spaces including shopping malls.
Retail stores have significant share and will witness extensive growth with increase in local demand. Online stores or E-commerce are new to this category and rise in online platforms, discount offers and easy delivery will propel luxury wine & spirit market growth.
Europe has substantial share in global luxury wine & spirit market with presence of Italy, France and Spain as largest producers in the world. In UK, more than 40% of youngsters (17-25 years) age and over 65% of adult population (25-45 years) consume alcoholic drinks that support its growth. North America has moderate share with present culture of serving drinks with meals.
Asia Pacific accounts for significant share in luxury wine & spirit market and expected to show substantial growth with large number of whisky and rum consumers. Further, presence of key manufacturers namely ThaiBev and HiteJinro strengthens its contribution. Middle East & Africa and Latin America have nascent share and shall grow with rise in public spending and growing foreign tourism.
Luxury wine & spirit market is moderately fragmented with large presence of mutlinational and regional players. Prominent players include Pernod Ricard, Brown Forman, Diageo, Bacardi, United Spirits, ThaiBev, Campari, Edrington Group, Bayadera Group, LMVH, William Grant & Sons, HiteJinro and Beam Suntory.
Companies are employing mergers and acquisition strategy to enhance their market penetration. In June 2016, Brown Forman acquired BenRiach Distillery Company, a well-recognized brand for malt whisky for consistent growth in whisky section.
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