Vodka Market Size

Global Vodka Market Overview

Vodka Market Size was valued at USD 38.697 billion in 2021. The Vodka market industry is projected to grow from USD 40.179 billion in 2022 to USD 70.487 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.78% during the forecast period (2022-2032). The increasing demand for bio-based Vodka owing to the various benefits provided by it such as ease of handling as well as ensuring lower risk of contamination to applicators is a vital factor boosting its market growth.

Figure 1: Vodka Market (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Vodka Market Trends

• High Demand for Alcoholic Beverages

The market is expected to be driven by the growing worldwide young-adult demographic, as well as strong disposable income and consumer desire for premium/super-premium items. Consumers across the world are becoming increasingly savvy. They are constantly on the lookout for unique and high-quality alcoholic beverages. This has raised market demand for high-quality alcoholic beverages. According to the Distilled Spirits Council of America, 21.7 million 9-liter cases of premium whisky and 21.1 million 9-liter cases of premium vodka was consumed in 2021. Moreover, the key causes driving up alcoholic beverage sales is the growing propensity among the youthful population to spend more time in pubs, bars, and restaurants.

Vodka Market Segment Insights:

Vodka Product Type Insights

Based on product type, the Vodka Market segmentation includes flavored and unflavored. The unflavored segment dominated the market in 2021, while the flavored segment is projected to be the fastest–growing segment during the forecast period, 2022–2032. Flavored vodka is a type of alcoholic beverage produced by infusion or maceration and contains flavors like vanillin, caramel, and sugar. It has different tastes depending on the ingredients used in its production process such as orange, lemon, etc. It is typically sweetened to balance the added flavors. The growing adoption of cucumber lime-flavored spirits is escalating the market growth in the upcoming years. Brands are coming up with flavored vodkas which are tasty and crispy on the taste palette and have become very popular in a short time. Also, brands like Smirnoff, Absolute, and Russian Standards have various flavors like Coffee, Chocolate, Apple, Orange, and peach. Due to tasty flavors brands have seen sudden demand. Therefore, rising demand for a fuzzy mule improves the digestion system and will further enhance the sales of flavored vodka during the forecast period.  

Figure 2: Vodka Market, By Product Type, 2021 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Vodka Category Insights

Based on category, the Vodka Market has been segmented into mass and premium. Mass-category vodka has a low price and compromised quality that is used during the fermentation process, such as potatoes and sugar beet rather than higher quality grains that are found in premium vodka. It is also targeted at the low-income population. The growing cocktail culture among consumers and increasing demand for premium vodka across the globe are likely to serve as a factor in the forecast period for the vodka market. Consumers today have more discriminating tastes than they did five years ago. To enhance both their overall appeal and functionality, premium vodkas go through numerous stages of distillation, setting them apart from more common variants. The popularity of healthier alcoholic beverages, which feature a blend of natural ingredients, reduced calories, and sugar-free formulation, is being encouraged by the rise in health consciousness. Also, due to rising consumer interest in living a sustainable and healthy lifestyle, the premium vodka category has better possibilities, particularly in the foreign market. As consumers continue to demand flavored, light beverages like hard seltzers, RTD vodka innovation is rising in developing nations. This is projected to fuel the expansion of the vodka market throughout the forecast period.

Vodka Distribution Channel Insights

Based on distribution channels, the Vodka Market has been classified as on-trade, and off-trade. Online trading growth is owing to increasing the focus of retailers to adopt internet retailing to sustain business with the help of modern trade technology. However, increasing demand for value-added white spirit products through online marketing is contributing to the growth of the vodka market. The supportive measures from the government of the US to roll-out the digital payment is refueling the segmental growth. Additionally, offline trading includes various suppliers such as supermarkets, liquor stores, specialty stores, and pubs, bars & restaurants. The growth is owing to the wide-scale presence of wine shops in urban and bucolic areas. According to the article published in CNN Sans, with a 1.3% expansion in 2021, the number of liquor stores in the US reached around 43000. On the other hand, the widespread existence of modern retail outlets like supermarkets is extending consumers the conveniences to make an easy purchase. Moreover, the pandemic outbreak has also strangled the sales of on-trade facilities as they are prompted by the government to function at less than half of their capacity. As a result, possible customers of on-trade channels are left with no option but to make off-trade purchases.

Vodka Regional Insights

By Region, the study segments the vodka market into North America, Europe, Asia-Pacific, and the Rest of the World. Europe Vodka market has held the largest market share among all the region in the Vodka Market. Europe accounts for the second-largest market share due to factors such as the heavy consumption of vodka on an annual basis. Russia is by far the biggest vodka consumer in the world with more than 11 liters of average consumption annually. Likewise, other European countries such as Poland, Bulgaria, Slovakia, and Ukraine have managed a spot in the list of the biggest vodka consumers. Moreover, the rising demand for premium vodka and the growing cocktail culture are the major drivers for the growth in Germany, France, and other countries. Europe’s unconventional affection toward alcohol has provided a fairground for the vodka market to flourish throughout the continent. On another hand, high living standards, comfortable GDP per capita incomes, and exuberant nightlife are other prominent factors driving the growth of the vodka market in Europe. Hence, above mentioned factors are expected to have a positive impact on the vodka market.

The major countries studied are the US, Canada, Mexico, the UK, France, Germany, Italy, Spain, China, India, Japan, Australia and New Zealand, South America, the Middle East, and Africa.

Figure 3: VODKA MARKET SHARE BY REGION, 2021 & 2032 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

North America is attributed to the presence of major manufacturers, increasing popularity of flavored vodkas, and increasing demand for Heritage 176 vodka in the US and Canada. The increasing popularity of flavored vodkas such as Texas Grapefruit, Blood Orange, Bartlett Pear, and Sun-Ripened Watermelon is driving sales in the United States. Further, the growing popularity of tart cherry and limeade vodka flavors combined with sweet citrus flavors in Canada will support the sector's expansion. Alcoholic drinks including Pyat Ozar, Svedka, and Hlibny Dar are also expected to propel the market's expansion. Additionally, the Canadian government's assistance in enhancing the premium white spirits' distribution system is anticipated to spur market expansion. Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, announced in 2019-2020 that Canada's vodka compositional standard has been modified to encourage greater innovation, increase consumer choice, and promote trade in the nation's expanding spirit sector. Potatoes and cereal grains are no longer the only agricultural products that Canadian distillers can utilize to make vodka. By allowing the use of novel ingredients like honey, apples, or dairy in the manufacturing of vodka, Canada will be better able to compete internationally and provide customers with additional options. Thus, above mentioned factors will help to propel market growth.

Asia-Pacific is anticipated to register the highest growth rate over the forecast period. This is due to the enlarging Western influence. Asian nations have imported many things from European culture including culinary habits, way of dressing, and many more. In addition to that, ameliorating infrastructure and disposable incomes due to budding affluence have their fair share in the growth of the vodka market throughout the Asian continent. Moreover, increasing demand for agave-based non-flavored vodka products from emerging economies such as China and India to accomplish the demand for white spirits. Also, the emerging trend in China to consume vodka flavored with mint with a bright blend of lemonade is propelling the market growth. The growing adoption of flavored vodka soda in India is estimated to showcase the fastest growth rate over the forecast period. Thus, these factors are likely to be responsible for the fastest growth of the Asia-Pacific region during the forecast period.

Vodka Key Market Players & Competitive Insights

The key companies continue to command a significant share of the market, leveraging their rich heritage, impeccable quality, and extensive global distribution networks. In addition, the companies’ strategic initiatives including expansion to new markets that have significant growth potential, entering into long-term contracts and agreements with domestic and international raw material suppliers, mergers and acquisitions, and technological innovation & incorporation in the manufacturing facilities are used by different players in the market to strengthen their presence in the market. Moreover, the rise of flavored vodkas, adds another layer of competition as companies strive to offer an array of exciting options to cater to diverse palates. In this fiercely competitive landscape, market players are not only focusing on product innovation but also enhancing their digital presence and engaging in experiential marketing to stay ahead in the race, making the vodka market a dynamic and engaging arena for both consumers and producers alike.

One of the key business strategies deployed by the Vodka industry to gain a competitive advantage among the competitors is product launch and product approval.

Brown-Forman is a global beverage manufacturing company which is engaged in development, and sale various types of beverages. The company offers products under the category of whiskey, tequila, rum, vodka, gin, liqueur, wine, ready-to-drink. The company’s well-established brands are Jack Daniel’s, Tequila Herradura’s, Woodford Reserve, Old Forester, Finlandia, Benriach, and others. The company distribute its products in more than 170 countries as well as company has strong supply network in North America, Europe, Asia-Pacific, and Rest of the World.

Constellation Brands, Inc is a global manufacturer and distributor of beverages. The company operates its business through beer, wine, and spirits. The company offers high quality brands such as the Robert Mondavi Brand Family, Kim Crawford e Corona Extra, Modelo Especial, Meiomi, and others. Moreover, the company is considered as the leading growth contributor at retail among beverage alcohol suppliers. The company operate its business through the subsidiaries such as High West Distillery, Funky Buddha Brewery, Opus One Winery, Ruffino, Schrader Cellars, LLC, and many others. The company has operations in, New Zealand, and Italy, and US as well as the strong distribution network in North America, Europe, Asia-Pacific, and Rest of the World.

Distell Group Limited is a leading producer and distributor of a wide range of alcoholic beverages. The company operates its business under the segment of spirits, ciders, wines, and drink (RTD) beverages across the globe. In addition, the company distinct product portfolio of brands with strong origin as well as accuracy, the company provide products at reasonable price which cater to large customers. The company has a strong supply network in North America, Europe, and Asia-Pacific. And Rest of the World.

Key Companies in the Vodka market include

• Diageo


• Pernod Ricard


• Davide Campari-Milano N.V.


• Brown-Forman


• Constellation Brands, Inc


• Distell Group Limited


• Proximo Spirits, Inc


• Canadian Iceberg Vodka Corporation


• BACARDI


• Henkell Freixenet Holding

Vodka Industry Developments

Vodka Market Segmentation

Vodka Product Type Outlook

• Flavored


• Unflavored

Vodka Category Outlook

• Mass


• Premium

Vodka Crop Distribution Channel Outlook

• On-Trade


• Off-Trade

Vodka Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  • Mexico
  
  
  
  


• Europe
  
  
  
  • Germany
  
  
  • UK
  
  
  • France
  
  
  • Spain
  
  
  • Italy
  
  
  • Rest of Europe
  
  
  
  


• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia and New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• Rest of the World
  
  
  
  • South America
  
  
  • The Middle East
  
  
  • Africa