The global luxury wines and spirits market was valued at $229.4 billion in 2021, and is projected to reach $414.8 billion by 2031, growing at a CAGR of 6.2% from 2022 to 2031.Luxury wines and spirits constitute alcoholic beverages having alcohol by volume (ABV) ranging from 3 to 40%. The drinks currently offered in the market are wines and distilled spirits, which are usually of fine quality and premium priced. These products are generally consumed during occasions such as marriages, parties, social gatherings, and other celebrations. They cannot be consumed by consumers aged below 17 years of age in most countries owing to government regulations. However, it is gaining popularity among middle-aged consumers, who are between 35 and 55 years of age.
The luxury wines and spirits market is projected to be fueled by the popularity of experiential marketing. The market for luxury wines and spirits is being supported in a number of ways by the rise of experiential marketing. Experiential marketing enables brands of luxury wines and spirits to connect with consumers more deeply, developing a unique and immersive brand experience. These can Include activities that educate consumers about the creation, history, and flavor profiles of the products, such as tastings, dinners, and tours of vineyards and distilleries.
The Europe luxury wines and spirits market held the major share in 2021 and is expected to grow at a significant CAGR during the forecast period. A number of European nations have a long history of producing fine wines and spirits, contributing to the rich cultural heritage of the continent in this area. As a result, there is now a custom of appreciating and valuing fine wines and spirits. The level of disposable Income in Europe is rather high, especially in nations like France, Germany, Switzerland, and the UK. As a result, customers in these areas have more money to spend on expensive goods like fine wines and spirits. Travelers from all over the world frequently visit Europe, and many of them are curious to try regional foods and drinks. Luxury wine and spirits are now in high demand, especially in popular travel destinations like France and Italy. Europe has a well-established wine and spirit distribution network with a vast variety of importers, distributors, and retailers. Luxury wine and spirit manufacturers may find it simpler to reach customers and create a presence in the market as a result.
Moreover, Cocktails are alcoholic drinks that contain small amounts of distilled spirit that are mixed with different juices. They are gaining popularity at nightclubs, hotels, and holiday destinations as there are wide varieties of these mixtures available to consumers. A cocktail drink contains a small number of premium spirits and a maximum amount of other ingredients, which are available at a cheaper price, thus is expected to create huge opportunities for the market in the coming years. This rise in popularity is mainly due to changing consumer consumption habits and a shift away from traditional beverages like soft drinks and beer. Consumers, mainly millennials are more health conscious, and they are willing to try new, healthier, alternatives to traditional soft drinks. Thus, this factor is expected to surge the growth in the popularity of cocktails drinks.
However, the major consumers of this market are the top 10% of global earning individuals and they are generally driven by quality and the exclusivity of these products. As a result, the products are usually priced at a premium cost for their finest quality. Moreover, the sales and distributions are limited to selected stores and distributors that ensure overall satisfaction with the consumption of these products. Hence, this restricts the availability of products to the masses through popular retail channels and online websites, which hampers the market growth.
The luxury wines and spirits market is segmented on the basis of type, distribution channel, and region. On the basis of type, the market is classified into wines/champagne and spirits. On the basis of distribution channel, the market is classified into wholesale, retail, e-commerce, and others. On the basis of region, it is analyzed across North America (U.S., Canada, Mexico), Europe (France, Germany, Italy, Spain, UK, Russia, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Thailand, Malaysia, Indonesia, and Rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, UAE, Argentina, and Rest of LAMEA).
The major players operating in the market focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. Brown-Forman Corporation, Pernod Ricard, Bacardi Limited, Thai Beverage PLC, Davide Campari-Milano N.V., Hitejinro co. Ltd, Suntory Holdings Limited, The Edrington group limited, LVMH, Bayadere Group, Campari-Milano, United Spirits Ltd., and Total Wine & More.
The luxury wines and spirits market is projected to be fueled by the popularity of experiential marketing. The market for luxury wines and spirits is being supported in a number of ways by the rise of experiential marketing. Experiential marketing enables brands of luxury wines and spirits to connect with consumers more deeply, developing a unique and immersive brand experience. These can Include activities that educate consumers about the creation, history, and flavor profiles of the products, such as tastings, dinners, and tours of vineyards and distilleries.
The Europe luxury wines and spirits market held the major share in 2021 and is expected to grow at a significant CAGR during the forecast period. A number of European nations have a long history of producing fine wines and spirits, contributing to the rich cultural heritage of the continent in this area. As a result, there is now a custom of appreciating and valuing fine wines and spirits. The level of disposable Income in Europe is rather high, especially in nations like France, Germany, Switzerland, and the UK. As a result, customers in these areas have more money to spend on expensive goods like fine wines and spirits. Travelers from all over the world frequently visit Europe, and many of them are curious to try regional foods and drinks. Luxury wine and spirits are now in high demand, especially in popular travel destinations like France and Italy. Europe has a well-established wine and spirit distribution network with a vast variety of importers, distributors, and retailers. Luxury wine and spirit manufacturers may find it simpler to reach customers and create a presence in the market as a result.
Moreover, Cocktails are alcoholic drinks that contain small amounts of distilled spirit that are mixed with different juices. They are gaining popularity at nightclubs, hotels, and holiday destinations as there are wide varieties of these mixtures available to consumers. A cocktail drink contains a small number of premium spirits and a maximum amount of other ingredients, which are available at a cheaper price, thus is expected to create huge opportunities for the market in the coming years. This rise in popularity is mainly due to changing consumer consumption habits and a shift away from traditional beverages like soft drinks and beer. Consumers, mainly millennials are more health conscious, and they are willing to try new, healthier, alternatives to traditional soft drinks. Thus, this factor is expected to surge the growth in the popularity of cocktails drinks.
However, the major consumers of this market are the top 10% of global earning individuals and they are generally driven by quality and the exclusivity of these products. As a result, the products are usually priced at a premium cost for their finest quality. Moreover, the sales and distributions are limited to selected stores and distributors that ensure overall satisfaction with the consumption of these products. Hence, this restricts the availability of products to the masses through popular retail channels and online websites, which hampers the market growth.
The luxury wines and spirits market is segmented on the basis of type, distribution channel, and region. On the basis of type, the market is classified into wines/champagne and spirits. On the basis of distribution channel, the market is classified into wholesale, retail, e-commerce, and others. On the basis of region, it is analyzed across North America (U.S., Canada, Mexico), Europe (France, Germany, Italy, Spain, UK, Russia, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Thailand, Malaysia, Indonesia, and Rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, UAE, Argentina, and Rest of LAMEA).
The major players operating in the market focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. Brown-Forman Corporation, Pernod Ricard, Bacardi Limited, Thai Beverage PLC, Davide Campari-Milano N.V., Hitejinro co. Ltd, Suntory Holdings Limited, The Edrington group limited, LVMH, Bayadere Group, Campari-Milano, United Spirits Ltd., and Total Wine & More.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the luxury wines and spirits market analysis from 2021 to 2031 to identify the prevailing luxury wines and spirits market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the luxury wines and spirits market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report Includes the analysis of the regional as well as global luxury wines and spirits market trends, key players, market segments, application areas, and market growth strategies.
Key Market Segments
By Type
- Wines/Champagnes
- Spirits
By Distribution Channel
- Wholesale
- Retail
- E-Commerce
- Others
By Region
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- France
- UK
- Spain
- Italy
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- Rest of Asia-Pacific
- LAMEA
- Brazil
- South Africa,
- Argentina
- Rest of LAMEA
Key Market Players
- Bacardi Limited
- Thai Beverage Pubilc Company Limited
- Suntory Holdings Limited
- Davide Campari-Milano N.V.
- Bayadera Group
- HITEJINRO Co., Ltd.
- Brown-Forman Corporation
- LVMH
- Pernod Ricard
- Diageo plc.
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Table of Contents
CHAPTER 1: INTRODUCTION
CHAPTER 2: EXECUTIVE SUMMARY
CHAPTER 3: MARKET OVERVIEW
CHAPTER 4: LUXURY WINES AND SPIRITS MARKET, BY TYPE
CHAPTER 5: LUXURY WINES AND SPIRITS MARKET, BY DISTRIBUTION CHANNEL
CHAPTER 6: LUXURY WINES AND SPIRITS MARKET, BY REGION
CHAPTER 7: COMPETITIVE LANDSCAPE
CHAPTER 8: COMPANY PROFILES
List of Tables
List of Figures
Executive Summary
According to a new report, titled, 'Luxury Wines and Spirits Market,' The luxury wines and spirits market was valued at $229.44 billion in 2021, and is estimated to reach $414.8 billion by 2031, growing at a CAGR of 6.2% from 2022 to 2031.Luxury wines and spirits constitute alcoholic beverages having alcohol by volume (ABV) ranging from 3 to 40%. The drinks currently offered in the market are wines and distilled spirits, which are usually of fine quality and premium priced. These products are generally consumed during occasions such as marriages, parties, social gatherings, and other celebrations. They cannot be consumed by consumers aged below 17 years of age in most countries owing to government regulations. However, it is gaining popularity among middle-aged consumers, who are between 35 and 55 years of age.
Key factors that drive the growth of the luxury wines and spirits market include the growth in interest in premium and unique products, rise in demand for an organic and sustainable product, and the popularity of experiential marketing. In addition, the market for luxury wines and spirits is being supported by emerging markets in a number of ways. Many emerging markets have a burgeoning middle class with rise in disposable income and a preference for luxury and high-end goods. As a result, there is a rise in market for high-end goods in nations like China, India, and Brazil, where there is a surge in demand for premium wines and spirits. Moreover, emerging regions offer luxury wine and spirits brands a chance to broaden their customer base and strengthen their position on a worldwide scale. In order to penetrate these markets, many businesses invest in marketing and distribution strategies, forming alliances with regional distributors and retailers, and customizing their products to suit regional tastes and preferences. In addition, emerging markets present a special chance for premium wine and spirits businesses to highlight their heritage and history, which may be a major selling factor for customers in these regions. Numerous companies have a long history and tradition of producing wine or bourbon, which can evoke an authentic and exclusive feeling in consumers. The expansion of emerging countries is boosting the market for luxury wines and spirits by giving firms new chances to broaden their customer bases, enter expanding markets, and educate new generations of customers about their history and legacy.
The market also offers growth opportunities to the key players in the market. The luxury wine and spirits sector have a great opportunity to stand out from rivals and adapt to changing requirements and preferences of customers through innovation and new product development. Brands may broaden their product offers and seize new market niches by creating fresh and cutting-edge luxury wines and alcohol goods. Innovation in high-end wines and spirits may take a variety of shapes, including the utilization of fresh flavor pairings, distinctive packaging designs, and novel ingredients or manufacturing processes. For instance, some companies use sustainable and organic materials in their products to appeal to customers who are concerned about the environment. To provide fresh and distinctive flavor profiles, some businesses are experimenting with different flavor pairings or aging processes. The chance to create products that cater to shifting consumer preferences and lifestyles is also presented by new product development for luxury wine and alcohol firms. For instance, there is a rise in demand for low-alcohol and non-alcoholic wines and spirits among consumers who prefer healthier options or do not drink. In general, premium wine and spirits firms should take advantage of innovation and new product development to set themselves apart from rivals and maintain relevance in a market that is changing quickly. Luxury wine and spirits companies can expand their market share and reach new markets by creating fresh, cutting-edge goods.
The luxury wines and spirits market is segmented on the basis of type, distribution channel, and region. On the basis of type, the market is classified into wines/champagne and spirits. On the basis of distribution channel, the market is classified into wholesale, retail, e-commerce, and others. On the basis of region, it is analyzed across North America (U.S., Canada, Mexico), Europe (France, Germany, Italy, Spain, the UK, Russia, and Rest of Europe), Asia-Pacific (China, Japan, India, Australia, South Korea, Thailand, Malaysia, Indonesia, and Rest of Asia-Pacific), and LAMEA (Brazil, South Africa, Saudi Arabia, UAE, Argentina, and Rest of LAMEA).
The major players operating in the market focus on key market strategies, such as mergers, product launches, acquisitions, collaborations, and partnerships. Brown-Forman Corporation, Pernod Ricard, Bacardi Limited, Thai Beverage PLC, Davide Campari-Milano N.V., Hitejinro co. Ltd, Suntory Holdings Limited, The Edrington group limited, LVMH, Bayadere Group, Campari-Milano, United Spirits Ltd., and Total Wine & More.
KEY FINDINGS OF THE STUDY
- On the basis of type, the wines/champagne processing segment was the highest revenue contributor to the market in 2021 and is expected to grow at a significant CAGR during the forecast period.
- On the basis of distribution channel, the retail segment was the highest revenue contributor to the market in 2021 and is expected to grow at a significant CAGR during the forecast period.
- On the basis of region, Europe was the highest revenue contributor to the market in is expected to grow at a significant CAGR during the forecast period.
Companies Mentioned
- Bacardi Limited
- Thai Beverage Pubilc Company Limited
- Suntory Holdings Limited
- Davide Campari-Milano N.V.
- Bayadera Group
- HITEJINRO Co., Ltd.
- Brown-Forman Corporation
- LVMH
- Pernod Ricard
- Diageo plc.
Methodology
The analyst offers exhaustive research and analysis based on a wide variety of factual inputs, which largely include interviews with industry participants, reliable statistics, and regional intelligence. The in-house industry experts play an instrumental role in designing analytic tools and models, tailored to the requirements of a particular industry segment. The primary research efforts include reaching out participants through mail, tele-conversations, referrals, professional networks, and face-to-face interactions.
They are also in professional corporate relations with various companies that allow them greater flexibility for reaching out to industry participants and commentators for interviews and discussions.
They also refer to a broad array of industry sources for their secondary research, which typically include; however, not limited to:
- Company SEC filings, annual reports, company websites, broker & financial reports, and investor presentations for competitive scenario and shape of the industry
- Scientific and technical writings for product information and related preemptions
- Regional government and statistical databases for macro analysis
- Authentic news articles and other related releases for market evaluation
- Internal and external proprietary databases, key market indicators, and relevant press releases for market estimates and forecast
Furthermore, the accuracy of the data will be analyzed and validated by conducting additional primaries with various industry experts and KOLs. They also provide robust post-sales support to clients.
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 362 |
| Published | May 2023 |
| Forecast Period | 2021 - 2031 |
| Estimated Market Value ( USD | $ 229.4 billion |
| Forecasted Market Value ( USD | $ 414.8 billion |
| Compound Annual Growth Rate | 6.1% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
