Spirits And Liqueurs Market

The global spirits and liqueurs market is facing a decline in consumption, with forecasts predicting a decrease in market volume and an increase in market value over the next eight years. Despite some fluctuations, overall consumption and production have remained relatively stable, with certain countries experiencing more notable growth rates. Imports and exports have seen significant increases, with some countries emerging as key players in the global market. Despite varying average prices amongst major exporting countries, the market is expected to see gradual growth in the near future.

Market Forecast

Depressed by shrinking demand for spirits and liqueurs worldwide, the market is expected to continue its downward consumption trend over the next eight years. The performance of the market is forecast to contract with an anticipated CAGR of -0.4% for the period from 2022 to 2030, which is projected to depress the market volume to 19B litres by the end of 2030.

In value terms, the market is forecast to contract with an anticipated CAGR of +1.5% for the period from 2022 to 2030, which is projected to bring the market value to $167.9B (in nominal prices) by the end of 2030.

Consumption

World Consumption of Spirits, Liqueurs And Other Spirituous Beverages

For the fifth year in a row, the global market recorded growth in consumption of spirits, liqueurs and other spirituous beverages, which increased by 2.9% to 19B litres in 2022. In general, consumption, however, recorded a relatively flat trend pattern. The growth pace was the most rapid in 2019 with an increase of 5.6% against the previous year. Global consumption peaked at 21B litres in 2012; however, from 2013 to 2022, consumption failed to regain momentum.

The global spirits and liqueurs market size dropped to $149B in 2022, flattening at the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption saw a relatively flat trend pattern. Global consumption peaked at $152.4B in 2019; however, from 2020 to 2022, consumption stood at a somewhat lower figure.

Consumption By Country

The countries with the highest volumes of consumption in 2022 were China (4B litres), the United States (2.2B litres) and India (1.4B litres), together accounting for 39% of global consumption.

From 2012 to 2022, the biggest increases were recorded for India (with a CAGR of +7.1%), while consumption for the other global leaders experienced more modest paces of growth.

In value terms, China ($74.7B) led the market, alone. The second position in the ranking was held by the United States ($16.9B). It was followed by Japan.

In China, the spirits and liqueurs market expanded at an average annual rate of +2.5% over the period from 2012-2022. The remaining consuming countries recorded the following average annual rates of market growth: the United States (-4.5% per year) and Japan (-0.8% per year).

The countries with the highest levels of spirits and liqueurs per capita consumption in 2022 were Canada (7.9 litres per person), Russia (7.2 litres per person) and the United States (6.7 litres per person).

From 2012 to 2022, the most notable rate of growth in terms of consumption, amongst the main consuming countries, was attained by India (with a CAGR of +5.9%), while consumption for the other global leaders experienced more modest paces of growth.

Production

World Production of Spirits, Liqueurs And Other Spirituous Beverages

In 2022, approx. 19B litres of spirits, liqueurs and other spirituous beverages were produced worldwide; with an increase of 1.8% on 2021. In general, production, however, saw a relatively flat trend pattern. The pace of growth was the most pronounced in 2019 with an increase of 6.4%. Global production peaked at 21B litres in 2012; however, from 2013 to 2022, production stood at a somewhat lower figure.

In value terms, spirits and liqueurs production reached $153.2B in 2022 estimated in export price. The total output value increased at an average annual rate of +1.8% over the period from 2012 to 2022; the trend pattern remained relatively stable, with somewhat noticeable fluctuations throughout the analyzed period. The growth pace was the most rapid in 2018 when the production volume increased by 12% against the previous year. Over the period under review, global production reached the peak level at $158.1B in 2019; however, from 2020 to 2022, production remained at a lower figure.

Production By Country

China (3.9B litres) constituted the country with the largest volume of spirits and liqueurs production, accounting for 20% of total volume. Moreover, spirits and liqueurs production in China exceeded the figures recorded by the second-largest producer, the United States (1.7B litres), twofold. The third position in this ranking was held by India (1.4B litres), with a 7.4% share.

In China, spirits and liqueurs production remained relatively stable over the period from 2012-2022. In the other countries, the average annual rates were as follows: the United States (-9.2% per year) and India (+7.1% per year).

Imports

World Imports of Spirits, Liqueurs And Other Spirituous Beverages

Global spirits and liqueurs imports skyrocketed to 6.6B litres in 2022, with an increase of 16% against the year before. The total import volume increased at an average annual rate of +3.6% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2021 when imports increased by 18% against the previous year. Over the period under review, global imports hit record highs in 2022 and are expected to retain growth in the near future.

In value terms, spirits and liqueurs imports expanded significantly to $42.3B in 2022. The total import value increased at an average annual rate of +3.9% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth was the most pronounced in 2021 with an increase of 23% against the previous year. Global imports peaked in 2022 and are likely to continue growth in the immediate term.

Imports By Country

In 2022, the United States (886M litres), followed by Russia (503M litres), Germany (415M litres) and France (303M litres) were the key importers of spirits, liqueurs and other spirituous beverages, together comprising 32% of total imports. The following importers - the UK (282M litres), the Netherlands (277M litres), Spain (235M litres), Israel (217M litres), Canada (172M litres), Italy (161M litres), Japan (160M litres), China (127M litres) and the United Arab Emirates (117M litres) - together made up 27% of total imports.

From 2012 to 2022, the most notable rate of growth in terms of purchases, amongst the key importing countries, was attained by Israel (with a CAGR of +34.4%), while imports for the other global leaders experienced more modest paces of growth.

In value terms, the United States ($12.6B) constitutes the largest market for imported spirits, liqueurs and other spirituous beverages worldwide, comprising 30% of global imports. The second position in the ranking was held by China ($2.3B), with a 5.5% share of global imports. It was followed by Germany, with a 4.4% share.

From 2012 to 2022, the average annual growth rate of value in the United States stood at +6.6%. In the other countries, the average annual rates were as follows: China (+6.7% per year) and Germany (+0.5% per year).

Import Prices By Country

The average spirits and liqueurs import price stood at $6.4 per litre in 2022, shrinking by -1.6% against the previous year. Over the period under review, the import price, however, saw a relatively flat trend pattern. The pace of growth was the most pronounced in 2018 when the average import price increased by 4.4% against the previous year. As a result, import price reached the peak level of $6.6 per litre. From 2019 to 2022, the average import prices remained at a somewhat lower figure.

Prices varied noticeably by country of destination: amid the top importers, the country with the highest price was China ($18 per litre), while Israel ($1.1 per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by Italy (+4.1%), while the other global leaders experienced more modest paces of growth.

Exports

World Exports of Spirits, Liqueurs And Other Spirituous Beverages

Global spirits and liqueurs exports rose sharply to 6.5B litres in 2022, surging by 11% compared with the year before. The total export volume increased at an average annual rate of +3.1% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The pace of growth appeared the most rapid in 2021 with an increase of 13%. Over the period under review, the global exports reached the peak figure in 2022 and are likely to see gradual growth in the near future.

In value terms, spirits and liqueurs exports expanded remarkably to $40.9B in 2022. The total export value increased at an average annual rate of +3.3% from 2012 to 2022; however, the trend pattern indicated some noticeable fluctuations being recorded in certain years. The most prominent rate of growth was recorded in 2021 with an increase of 24% against the previous year. The global exports peaked in 2022 and are likely to see gradual growth in the near future.

Exports By Country

In 2022, the UK (1.4B litres), distantly followed by France (487M litres), Italy (475M litres), Mexico (465M litres), the Netherlands (380M litres), the United States (319M litres), Germany (311M litres) and Spain (307M litres) were the main exporters of spirits, liqueurs and other spirituous beverages, together achieving 63% of total exports. The following exporters - Ireland (212M litres), Belgium (158M litres), South Korea (130M litres), Sweden (127M litres) and India (120M litres) - together made up 11% of total exports.

From 2012 to 2022, average annual rates of growth with regard to spirits and liqueurs exports from the UK stood at +2.5%. At the same time, Belgium (+26.9%), India (+11.9%), Mexico (+9.1%), Italy (+8.2%), the Netherlands (+6.3%), Spain (+6.3%), Ireland (+5.2%), South Korea (+4.0%), Germany (+1.7%) and France (+1.3%) displayed positive paces of growth. Moreover, Belgium emerged as the fastest-growing exporter exported in the world, with a CAGR of +26.9% from 2012-2022. Sweden experienced a relatively flat trend pattern. By contrast, the United States (-2.8%) illustrated a downward trend over the same period. While the share of Mexico (+3.1 p.p.), Italy (+2.8 p.p.), Belgium (+2.1 p.p.) and the Netherlands (+1.5 p.p.) increased significantly in terms of the global exports from 2012-2022, the share of the United States (-3.9 p.p.) displayed negative dynamics. The shares of the other countries remained relatively stable throughout the analyzed period.

In value terms, the UK ($9.3B), France ($6.1B) and Mexico ($4B) were the countries with the highest levels of exports in 2022, together comprising 48% of global exports. The United States, Italy, the Netherlands, Germany, Ireland, Spain, Belgium, Sweden, South Korea and India lagged somewhat behind, together comprising a further 28%.

Belgium, with a CAGR of +17.2%, recorded the highest rates of growth with regard to the value of exports, in terms of the main exporting countries over the period under review, while shipments for the other global leaders experienced more modest paces of growth.

Export Prices By Country

In 2022, the average spirits and liqueurs export price amounted to $6.3 per litre, leveling off at the previous year. Over the period under review, the export price continues to indicate a relatively flat trend pattern. The pace of growth was the most pronounced in 2021 when the average export price increased by 10%. The global export price peaked at $6.5 per litre in 2014; however, from 2015 to 2022, the export prices stood at a somewhat lower figure.

There were significant differences in the average prices amongst the major exporting countries. In 2022, amid the top suppliers, the country with the highest price was France ($13 per litre), while South Korea ($1.4 per litre) was amongst the lowest.

From 2012 to 2022, the most notable rate of growth in terms of prices was attained by the United States (+5.9%), while the other global leaders experienced more modest paces of growth.

Source: IndexBox Market Intelligence Platform