Market Trends
There have been notable trends in the gin demand that are indicative of changing consumer preferences and the assiduity of the spirit. The resurgence of interest in handmade and artisanal spirits is one prevalent trend driving the increase of the gin demand. Customers are becoming less interested in distinctive and premium gin immolations in favor of botanical composite decorations and a variety of taste profiles. Craft distilleries have been instrumental in this movement by launching unique gin variants that distinguish themselves in a crowded market and appeal to customers who value authenticity and artificer. Trends in gin requests have also been influenced by the growth of the mix culture.
Customers are discovering inventive ways to enjoy gin outside of the conventional gin and alcohol pairings as mixology gains in popularity. As a result, there are now a plethora of seasoned gins and ready-to-drink gin blends available, giving customers easily accessible alternatives for mixing elegant drinks at home. Due to its adaptability as a foundation spirit, gin has become more popular in both home bars and mix bars, encouraging a culture of experimentation and personalization. Health and heartiness factors have influenced the market for gin, and there is also a growing need for low-calorie and low-alcohol choices. Some gin directors are creating lighter varieties that appeal to consumers who are looking for a more conscious drinking experience in response to shifting consumer trends.
Non-alcoholic druthers with botanical investments and distillation have also emerged, offering choices to customers who want to experience the flavor of gin without the alcohol. The demand for ginseng has been affected by the worldwide nature of spirits' diligence, as there is an increasing fascination with local and amazing botanicals. Makers are experimenting with unusual botanicals that come from certain geographical areas, which is helping to create distinctive native gin varieties. This trend fosters a sense of connection to the source of the spirits consumers enjoy by aligning with consumer demands for genuine and regionally inspired goods. The gin request now heavily emphasizes sustainability, mirroring larger environmental initiatives.
Customers' awareness of how their purchases affect the environment is waning, which encourages gin directors to adopt eco-friendly procedures. This includes initiatives like employing recyclable packaging, requiring botanicals to be sourced sustainably, and reducing the carbon footprint of the product. In today's competitive market, sustainability is not just a responsible company practice but also a key element influencing customer decisions. Another trend influencing requests is the premiumization of gin, as customers are prepared to pay a premium for distinctive and high-quality immolations. The need for a more upscale and upscale drinking experience has led to a boom in premium and ultra-premium gin products.
In response, distillers are differentiating their goods and grabbing the interest of discerning customers with clever packaging, unusual botanical combinations, and limited-edition releases. The way that people find and purchase goods has changed due to the internet era, and this also applies to gin requests. E-commerce sites are becoming vital conduits for the gin trade, giving customers an easy way to browse and purchase a variety of gins and expressions. Online resources include comprehensive product details, customer feedback, and the ease of doorstep delivery, all of which enhance the availability and exposure of vibrant gin alternatives overall.
Gin Market Size was valued at USD 9468.5 million in 2023. The gin industry is projected to grow from USD 9895.5 Million in 2024 to USD 13475.4 million by 2032, exhibiting a compound annual growth rate (CAGR) of 4.51% during the forecast period (2024 - 2032). Demand for premium ready-to-drink and luxury spirits has increased as consumer buying power and awareness have increased the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
The industry's expansion is aided by increased disposable income, expanding populations in established and developing nations, rising millennial alcohol consumption, and rising demand for alcoholic beverages. Additionally, it is projected that shifting customer preferences for premium liquor varieties will increase demand for premium brands. Large populations are migrating to bigger cities where they are exposed to a wider variety of alcoholic beverage goods, thus assisting industry expansion. Meanwhile, the sector is growing due to expanding urbanization, lavish consumption, and rising social acceptance. Gin is prized for its natural flavor and earthy appeal, and most on-trade counters use a sizable amount of gin to create premium cocktails. The market for alcoholic drinks is evolving as more distilleries enter the beverage industry due to a rise in alcohol usage among young people and millennials.
Comparatively speaking, the younger generation has more sophisticated palates and is continuously hunting for distinctive, premium alcoholic beverages. Alcoholic beverages that contain natural components perform better, and customers are becoming increasingly interested in these goods. As a result, natural flavors are becoming increasingly popular to boost the beverage's innate appeal. Because it has a natural flavor and gives a drink an earthy charm, gin is popular. Most on-trade counters utilize a sizable amount of gin to create premium beverages. Consumers, especially millennials, are experimenting with gin and other alcoholic beverages at social gatherings and festive events. For instance, 37% of bartenders worldwide selected gin as the best spirit among premium cocktails and other alcoholic beverages in the Bacardi Cultural Insights Network poll from 2020.
Customers can choose from a variety of alcoholic beverages available on the market, such as beer, wine, and spirits, among which gin is quickly gaining recognition on a scale. In the Bacardi Cultural Insights Network 2020 survey, 37% of bartenders ranked gin as the top spirit that immunizes cocktails and other alcoholic beverages globally. Therefore, such factors have enhanced the gin market CAGR globally in recent years.
Figure 1: Gin consumption at and outside home
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
However, rising in number of distillers is another factor driving the growth of the gin market revenue.
The gin market segmentation0, based on type, includes London dry, Plymouth, old tom, and others. The Plymouth segment held the majority share in 2021, contributing around ~35% concerning the gin market revenue. London Dry Gin is a widely consumed beverage worldwide because it offers consumers superior flavor and refreshment. London Dry Gin uses a fruit with a strong juniper flavor for its characteristic flavor. It also has a lot of undertones of crisp citrus. This is why adding a lemon twist to a martini brings out its citrus notes. With a depth of natural ingredients, Plymouth Gin's smooth and rich flavor offers consumers a distinctive experience.
Based on distribution channels, the gin market segmentation includes supermarkets, hypermarkets, specialty stores, and others. The Supermarkets and Hypermarkets segment dominated the market in 2021 and is projected to be the faster-growing segment during the forecast period, 2022-2030. This is because of trends toward quick westernization and the growth of contemporary pubs and restaurants in developing nations. Hence, rising applications of implants for gin positively impact the market growth.
Figure 2: Gin Market, by Distribution Channel, 2021 & 2030 (USD Million)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. Europe's gin market accounted for USD 4336.5 million in 2021 and is expected to exhibit a significant CAGR growth during the study period. The demand for din is rising in various locations, which effectively fuels the growth of the gin industry.
Further, the major countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 3: GIN MARKET SHARE BY REGION 2021 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
North America gin market accounts for the second-largest market share. The growing number of millennials in the area is anticipated to fuel the gin market. The gin sector is also driven by the region's urbanization, changing lifestyles, and disposable income. Because of the security clearance procedures established by regulatory organizations, the number of manufacturers in the United States has increased quickly. Gin distribution, sale, and production are all tightly regulated in the US. Due to the regulatory framework, several industries have consolidated at different levels. Further, the UK gin market held the largest market share, and the Canada gin market was the fastest-growing market in the European region.
The Asia-Pacific Gin Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to the rising urbanization and rise in disposable income's effects on the number of potential consumers. According to data published by the IMF and World Bank, Asian consumers have been consistently spending more money overall on alcohol and tobacco products, which has been fueling market expansion. By 2025, overall spending will likely equal over USD 425 billion. Further, in response to changes in patron preferences, pubs and bars specialize in the unique cocktail party lounge. Most wealthy consumers prefer vodka and gin-based cocktails like the Asian Pear Mule, Whisky Mac, Japanese Highball, Singapore Sling, and Soju Watermelon Cocktail. Moreover, China gin market held the largest market share, and the Indian gin market was the fastest-growing market in the Asia-Pacific region.
Major market players are investing a lot of money in R&D to expand their product offerings, which will spur further growth for the gin industry. Participants in the market are also undertaking various strategic initiatives to expand their footprint. Significant market developments include new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Gin industry rivals must provide affordable goods to grow and thrive in a more cutthroat and competitively heated market environment.
One of the primary business strategies manufacturers adopt in the gin industry to benefit clients and expand the market sector is manufacturing locally to reduce operating costs. In recent years, gin industry has provided some of the most significant benefits. Major gin market players such as Bombay Sapphire, Diageo India, and others are working on expanding the market demand by investing in research and development activities.
The Bombay Spirits Company, a division of Bacardi, produces Bombay Sapphire gin in Laverstoke Mill in the English village of Laverstoke in the county of Hampshire. In April 2022, A gin with a Mediterranean lemon flavor called Citron Presse was introduced by Bombay Sapphire, a brand owned by Bacardi. The business intends to launch new items in several important nations, including Australia, Spain, and Ireland. Germany, Austria, Belgium, Portugal, Switzerland, France, Denmark, and Andorra.
Also, the largest beverage and alcoholic beverage firm in the nation, Diageo India, has an exceptional portfolio of premium brands. In march 2022, Diageo India invested in Nao Spirits, a maker of "Greater Than" and "Hapusa," two premium Indian handmade gins. Diageo India hopes to extend its participation in India's fast-growing premium gin industry with this investment.
Bacardi Limited (Bermuda)
The East India Company Ltd (U.K.)
William Grant & Sons Ltd (U.K.)
Ginebra San Miguel Inc. (Philippines)
The Poshmakers Ltd (U.K.)
Forest Dry Gin (Belgium)
West End Drinks Ltd (U.K.)
Boudier Gabriel Ets SA (France)
Diageo plc (U.K.)
Pernod Ricard S.A. (France)
Suntory Holdings Limited (Japan)
The Sustainable Spirit Co. (U.K.)
Davide Campari-Milano S.p.A. (Italy)
The Black Bottle Distillery (U.K.)
Langtons Gin Ltd (U.K.) among others
March 2022: With the sea-inspired Neptunia, William Grant & Sons is introducing a new interpretation of its Hendrick's gin brand. A combination of Scottish coastal botanicals with a "bright citrus" flavor was used to create the extension. Hendrick's categorizes the expression as an experimental gin, which will only be offered globally through on- and off-premise channels for a brief period.
April 2021: Several ready-to-drink (RTD) beverages were introduced by Pernod Ricard S.A. in the U.K. market. Beefeater London Dry Gin & Tonic, Beefeater Blood Orange & Tonic, and Beefeater Pink Strawberry Gin & Tonic are some recently released RTDs that use Beefeater gin.
Gin Type Outlook
Gin Distribution Channel Outlook
Gin Regional Outlook
North America
Europe
Asia-Pacific
Rest of the World
Middle East
Africa
Latin America
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