Vodka Market Size, Share & Industry Trends Analysis Report By Type (Non-Flavored and Flavored), By Distribution Channel (On-Trade and Off-Trade), By Regional Outlook and Forecast, 2023 - 2029

The Global Vodka Market size is expected to reach $35.4 billion by 2029, rising at a market growth of 5.3% CAGR during the forecast period.

The non- flavored Vodka is leading the market as Vodkas that don't have flavor are put through a number of distillation stages to improve their appearance and functionality overall and set them apart from other types of alcohol. Thus, rising standard of living and disposable income are the factors driving the market. Hence, non-flavored Vodka is expected to generate approximately 2/3rd share of the market by 2029.



The major strategies followed by the market participants are Partnerships as the key developmental strategy to keep pace with the changing demands of end users. For instance, In January, 2023, Brown-Forman acquired Diplomático Rum Brand to meet the linking of global spirits consumers. Additionally, In March 2023, Pernod Ricard joined hands with Kraft Heinz for launching Absolut vodka-based pasta sauce. The vodka in the pasta sauce is claimed to enhance the texture and flavor. In October 2022, Proximo Spirits partnered with Blue Ridge Spirits & Wine Marketing. The partnership involves Blue Ridge acting as a marketing, and distribution management partner for select Proximo's brands, thereby advancing the growth of Proximo's brands across the whole United States.

The Cardinal Matrix - Market Competition Analysis

Based on the Analysis presented in the Cardinal matrix; Belvedere Vodka (LVMH SE) is the forerunner in the Market. Companies such as Diageo plc, Pernod Ricard S.A., and Brown-Forman Corporation are some of the key innovators in Market. In March, 2023, Pernod Ricard joined hands with Kraft Heinz, a US-based food and beverage manufacturer. The collaboration involves launching Absolut vodka-based pasta sauce. The vodka in the pasta sauce is claimed to enhance the texture and flavor.

Market Growth Factors

Increasing presence of market participants on social media platforms and online sales channels

The rise of vodka over online distribution channels is further aided by consumers' preference for e-commerce. Vodka may expand rapidly from a tiny basis through direct-to-consumer (DTC) along with additional e-commerce channels. To lawfully sell to consumers directly, participants in direct-to-consumer strategies have used various business models. For starters, distilleries now provide direct-to-consumer sales both offline and online. In addition, due to the "cocktail culture" craze, third-party cocktail clubs are becoming increasingly popular. Therefore, the adoption of such marketing models will probably help in the expansion of the market.

The growing popularity of premium vodka

Today's consumers are more discriminating in their tastes than five years ago. They constantly seek out new and expensive alcoholic beverages to sample, and these beverages frequently combine high-quality components with distinctive botanical infusions to create a delectable flavor. Additionally, premium vodkas undergo several phases of distillation to enhance their overall appeal and functioning, setting them distinct from more common types. As a result of consumers' rising interest in leading sustainable and healthy lifestyles, the premium vodka range has better possibilities.

Market Restraining Factors

High intake poses health risks and strict government regulations

Consumption of alcohol and alcoholic beverages in excess can result in a range of adverse health effects, including but not limited to depression, cognitive impairments, strokes, and failure of the lungs. The WHO estimates that 3 million deaths worldwide each year, or 5.3% of all deaths, are due to hazardous alcohol use. Over 200 illnesses and injuries are influenced by alcohol misuse. When the worldwide burden of disease and injury is calculated in terms of disability-adjusted life years (DALYs), alcohol use is responsible for 5.1% of that total. Early death and disability are results of overconsumption of alcohol. Therefore, all these elements present significant factors that may obstruct the growth of the market throughout the forecast period.

Type Outlook

Based on type, the market is characterized into flavored and non-flavored. The non-flavored segment garnered the highest revenue share in the market in 2022. To create a flavorful beverage, they can frequently be blended with a combination of unique botanical infusions and premium components. Aside from that, the rise in health consciousness promotes the consumption of alcohol that uses natural ingredients, is lower in calories, and doesn't include sugar.

Distribution Channel Outlook

On the basis of distribution channel, the market is classified into off-trade and on-trade. The off-trade segment recorded a significant revenue share in the market in 2022. All retail establishments, such as wine and spirit shops, hypermarkets, supermarkets, small markets, and liquor specialty stores, are included in the off-trade section. Because they provide a wide range of coupons and discounts, consumers favor these stores. These stores provide simple access to several alcohol variations in addition to providing discounts and promotional deals. Most businesses partner with renowned supermarkets like Target, Tesco, Walmart, etc., to introduce their products and widen customer outreach in an effort to reach the greatest number of consumers.

Regional Outlook

Region wise, the market is analyzed across North America, Europe, Asia Pacific, and LAMEA. The North America segment witnessed the maximum revenue share in the market in 2022. Changes in consumer behavior brought on by the pandemic continue to have an impact on the consumption of and demand for vodka in North America. These tendencies will continue to have an impact on the alcoholic beverage industry in the long run, especially the craft spirits industry, even after the COVID-19 lockdowns and limitations are lifted. Due to growing customer demand for high-end, original drinks with distinctive flavors, vodka is growing.

The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Brown-Forman Corporation, Diageo plc, Pernod Ricard S.A., Bacardi Limited, Constellation Brands, Inc., Distell Group Limited, Proximo Spirits, Inc. (BECLE, S.A.B. DE C.V.), Belvedere Vodka (LVMH SE), Stoli Group (SPI Group) and Iceberg Vodka Corporation.

Recent Strategies Deployed in the Market

Partnerships, Collaborations and Agreements:

• Mar-2023: Pernod Ricard joined hands with Kraft Heinz, a US-based food and beverage manufacturer. The collaboration involves launching Absolut vodka-based pasta sauce. The vodka in the pasta sauce is claimed to enhance the texture and flavor.
• Oct-2022: Pernod Ricard extended its partnership with Sovereign Brands, a US-based producer of wine and spirits products. This partnership involves Pernod increasing its minority stake in Sovereign Brands. The partnership aligns with Pernod's strategic plan and further reinforces Pernod's market presence in the US.
• Oct-2022: Proximo Spirits partnered with Blue Ridge Spirits & Wine Marketing, a US-based marketer of premium wine and spirits. The partnership involves Blue Ridge acting as a marketing, and distribution management partner for select Proximo's brands, thereby advancing the growth of Proximo's brands across the whole United States.
• Jul-2022: Diageo came into collaboration with The Vita Coco Company, a platform of non-alcoholic beverage brands. The collaboration involves introducing a range of premium canned cocktails.
• Jun-2022: Constellation Brands signed an agreement with The Coca-Cola Company, a US-based operating in the drink industry. The agreement involves marketing, manufacturing, and introducing Fresca Mixed. Fresca Mixed is a spirit based RTD cocktail. Further, the agreement expands the alcoholic beverage manufacturer's product offerings.
• Mar-2022: Pernod Ricard came into partnership with ecoSPIRITS, a Singapore-based developer of technology intended to remove packaging waste. The partnership aims at reducing waste and carbon emissions arising due to the transportation and production of glass bottles. Further, this partnership reinforces Pernod's sustainability commitments.
• Oct-2021: Stoli Group came into partnership with Global Drinks Ltd (GDL). The distribution partnership focuses on expanding the customer reach of Stoli's brands in the Asia Pacific region.
• Jun-2021: Pernod Ricard USA came into partnership with Drinkworks, a US-based producer of drink-making appliances. The partnership involves jointly developing cocktails for use in the Drinkworks' home bar system. Further, this partnership aligns with Pernod's vision to become a consumer-focused organization.

Product Launches and Product Expansions:

• Apr-2022: Stoli Group launched a limited edition of Stoli Vodka. The limited-edition Vodka's sales proceeds would be donated to World Central Kitchen, a nonprofit organization that focuses on providing meals to refugees and those affected by the war. The nonprofit organization would support Ukrainian people with the donation received from Stoli.
• Jul-2021: Constellation Brands introduced Svedka Vodka Sodas. The ready-to-drink vodka soda is made with juice, vodka, and sparkling water, and has 8%-abv alcohol content. The recently launched is available in three variants, Black Cherry Lime, Strawberry Lemonade, and Mango Pineapple.

Acquisitions and Mergers:

• Jan-2023: Brown-Forman acquired Diplomático Rum Brand, a global Super-Premium Rum brand. With this acquisition, Brown-Forman's super-premium suite continues growing to meet the linking of global spirits consumers.
• Jan-2023: Diageo announced the acquisition of Don Papa Rum, a super-premium, dark rum company based in the Philippines. Following this acquisition, Diageo would strengthen its place in the exciting rum segment that is in the initial stages of premiumization.
• Jan-2022: Diageo acquired Casa UM. The acquisition would expand the acquiring company's agave spirits offerings.
• Sep-2021: Pernod Ricard signed an agreement to acquire The Whisky Exchange, a UK-based retailer of whiskies and fine spirits. The addition of The Whisky Exchange supports the acquiring company's vision to become a customer-focused organization.

Geographical Expansions:

• Mar-2022: Diageo North America opened a new facility in Illinois, USA. The new canning facility reinforces the company's manufacturing footprint in the region. Further, this expansion would enable the company to realize synergies with its bottling processes and warehouses located in Illinois.
• Feb-2021: Brown-Forman expanded its distillery located in Louisville, USA. The expansion increases the company's production capacity and enhances efficiency.

Scope of the Study

By Type

• Non-Flavored
• Flavored

By Distribution Channel

• On-Trade
• Off-Trade

By Geography

• North America
• US
• Canada
• Mexico
• Rest of North America

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

• Asia Pacific
• China
• Japan
• India
• South Korea
• Singapore
• Malaysia
• Rest of Asia Pacific

• LAMEA
• Brazil
• Argentina
• UAE
• Egypt
• South Africa
• Nigeria
• Rest of LAMEA

Key Market Players

List of Companies Profiled in the Report:

• Brown-Forman Corporation
• Diageo plc
• Pernod Ricard S.A.
• Bacardi Limited
• Constellation Brands, Inc.
• Distell Group Limited
• Proximo Spirits, Inc. (BECLE, S.A.B. DE C.V.)
• Belvedere Vodka (LVMH SE)
• Stoli Group (SPI Group)
• Iceberg Vodka Corporation

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