The global vodka market size was estimated to reach USD 40.25 billion in 2030 and is expected to expand at a CAGR of 5.6% over the forecast period. Millennials have accounted for a significant percentage of alcohol drinkers in the recent past and this trend is anticipated to continue over the forecast period. The generation exhibits significant purchasing power and represents a major demographic for the alcoholic beverages market as they form a major percentage of consumers frequently visiting restaurants and pubs. As a result, they appear to be the most powerful buyers of various food and drink items, including vodka.
Vodka-based Ready to Drink (RTD) beverages such as pre-mixed cocktails, spirits, and hard seltzers are witnessing a huge increase in new product development, which is expected to drive the market. For example, in March 2022, under the Svedka brand, Constellation Brands launched a canned vodka line. The Tea Spritz line is described as a spirit-based hard seltzer that combines real tea, sparkling water, and natural tropical fruit flavors and is available in three flavors: Orange Mango, Pineapple Guava (both of which include turmeric), and Raspberry Kiwi.
Unlike beer and wine, vodka consumption at restaurants and bars has been growing. The growth is expected to continue outpacing on-premise consumption. With consumers' return to bars following the COVID-19 disruptions, vodka's on-premise consumption has been fueled, and this trend is anticipated to continue. According to IWSR Drinks Market Analysis in 2019, total vodka on-premise sales increased by 5.9% in the U.S. Grey Goose, for example, saw a 181% increase in on-premises sales in 2021, presenting lucrative opportunities for premium vodka manufacturers.
The flavored segment is anticipated to witness the fastest growth rate during the forecast period owing to the growing demand for high-end flavored vodka, especially among the millennial population. key companies are trying to offer a variety of vodka products and pioneer the ‘ready-to-shake’ drinks category. The newly launched product line includes the ‘Whisky Sour’ with DEWAR’S Blended Scotch whisky, ‘Rum Daiquirí’ made with BACARDÍ rum, and the ‘Espresso Martini Cocktail’ and ‘Passion Fruit Martini Cocktail’ made with 42BELOW vodka. With such initiatives
The off-trade segment is expected to register significant growth during the forecast period owing to the discounts and promotional offers provided by the retail outlets. The ease of accessing different varieties of alcohol at the outlets is expected to notable growth during the forecast period.
Asia Pacific is expected to register a significant CAGR of 6.1% during the forecast period. Asia Pacific is one of the leading markets for vodka owing to increased spending from people on better quality beverages in the region. In China, there has been a well-documented shift to buying alcohol online since the start of the pandemic. According to the study published by IWSR. The data shows that from 2019-2020. The value of China’s alcohol e-commerce sector grew by approximately 20%. The increased penetration of online sales of alcohol in China is driving the growth of the vodka market.
Leading manufacturers are Diageo, Bacardi Limited, and Pernod Ricard. Large players in the market are also setting the trend of acquiring regional brands that serve multiple states. Players are recognizing the importance and dominance of regional brands, not just in terms of scaling their businesses but also in terms of the positive impact of consistent service on customers.
Vodka Market Report Highlights
- Non-Flavored segment held the largest share of over 65% in 2022. The demand for non-flavored vodka can be attributed to the growth in health consciousness which encourages the consumption of alcohol made with natural ingredients
- On-Trade segment held a significant market share of more than 67% in 2022. The growth of the segment can be attributed to the growing number of pubs and expanding hospitality industry
- Europe is expected to register a significant CAGR of 5.8% during the forecast period. The rising demand for premium vodka and the growing cocktail culture are the key drivers for the growth of the vodka market in the region
Table of Contents
Chapter 1. Methodology and Scope
Chapter 2. Executive Summary
Chapter 3. Vodka Market Variables, Trends & Scope
Chapter 4. Vodka Market: Consumer Behaviour Analysis
Chapter 5. Vodka Market: Type Estimates & Trend Analysis
Chapter 6. Vodka Market: Distribution Channel Estimates & Trend Analysis
Chapter 7. Vodka Market: Regional Estimates & Trend Analysis
Chapter 8. Competitive Analysis
List of Tables
List of Figures
Companies Mentioned
- Brown-Forman Corporation
- Diageo
- Pernod Ricard
- Belvedere Vodka
- Bacardi Limited
- Constellation Brands, Inc.
- Proximo Spirits, Inc.
- Distell Limited
- Stoli Group
- Iceberg Vodka Corporation
Methodology
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Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 92 |
| Published | April 2023 |
| Forecast Period | 2022 - 2030 |
| Estimated Market Value ( USD | $ 25.98 Billion |
| Forecasted Market Value ( USD | $ 40.25 Billion |
| Compound Annual Growth Rate | 5.6% |
| Regions Covered | Global |
| No. of Companies Mentioned | 10 |
