The global Flavored Whiskey Market is valued at USD 27.9 Billion in 2022 and is projected to reach a value of USD 47.1 Billion by 2030 at a CAGR (Compound Annual Growth Rate) of 7.8% between 2023 and 2030.
According to a survey, sales of whisky increased by 9.4% at the end of July 2022 compared to the previous year. The global market for Flavored Whiskey is driven by a youth-centric trend. The increase in the adolescent population base will generate market interest in Flavored Whiskey oin the coming years. Also, the rise in the number of women who consume alcohol is anticipated, necessitating a different flavor profile to attract their attention.
Flavored Whiskey Market Size, 2022 To 2030 (USD Billion)
Manufacturers are introducing a wide range of flavors to cater to diverse consumer preferences. Examples of popular flavors include honey, cinnamon, apple, and caramel. Cinnamon whisky has become one of the most popular new varieties of spirits during these years. Spicy whisky has established quite a name for itself and is frequently consumed among the youth as flaming hot shots, warming cocktails and mixed drinks. This has led to inclination of spicy whisky among the target masses. Global sales of flavoured alcohol amounted $675.9 million in the last year, up 5.8% from the year before. In addition, fruit-infused Flavored Whiskey has gained popularity among consumers looking for a sweeter and fruitier taste. Brands like Crown Royal Regal Apple, Jack Daniel's Tennessee Apple, and Jim Beam Apple have successfully captured market share with their apple-Flavored Whiskey offerings. Apple Flavored Whiskey is the next biggest hitter, with sales of $267.7 million. Likewise, with sales of $173.4 million, honey ranks third in the popularity.
In North America for instance, the U.S. whisky statistics reveal that between August 2022-2022, sales of unflavored whiskies fell by 2.3%, while only flavoured whisky sales had stable growth. This shows, that most consumer interest in the category is currently being generated by flavoured products.
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- Company revenue shares
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- Europe accounted for more than 42.1% of revenue share in 2022,
- Asia Pacific is projected to increase at the fastest CAGR from 2023 to 2030,
- By Type, the Malt Based Whiskey to register significant growth in the coming years,
- By End Users, there is rapid expansion in the Retail Segment,
- By Flavor Type, the Citrus Flavored Whiskey has the majority of market share in 2022.
The global Flavored Whiskey market is expected to continue growing as more consumers explore different flavor profiles and seek unique drinking experiences. However, market trends and demand for specific flavors may change over time. As with any industry, factors such as changes in consumer preferences, economic conditions, regulations, and competitive dynamics can all impact the Flavored Whiskey market. Distillers will need to adapt and innovate in response to these changes to remain competitive in the global market.
The global Flavored Whiskey market can be categorized on the following: Type, End Users, Flavor Type, Distribution Channel, and Region. Based on the Type, the market can be categorized further into Bourbon, Scotch, Malted, Blended, and Other Types. Additionally, based on End Use, the market can be split further into Retail, Hotel, Restaurant, and Catering. Moreover, based on Flavor Type, the market can be fragmented into Citrus, Honey, Caramel, Cider, Apple, and Cinnamon. Based on Distribution Channel, the market can be split into Hypermarket/Supermarket, Departmental Stores, Liquor Stores, Specialty Stores, and E-commerce. Likewise, based on Region, the market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
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Based on Type
Malt Based Whiskey to be Consumed Heavily
The malt based whiskey segment is gaining significant traction in the market due to its unique taste and flavor profiles. Malt based Flavored Whiskeys are created by infusing traditional malt whiskey with various flavors such as fruits, spices, and herbs, resulting in a distinct and versatile product. Consumers are increasingly opting for malt based Flavored Whiskeys as they provide a refreshing twist to the classic whiskey taste. Additionally, the broad range of flavors available within this segment caters to different consumer preferences, making it popular among a diverse customer base. The malt based segment is also witnessing growth due to the increasing popularity of cocktails and mixed drinks. Malt based Flavored Whiskeys add complexity and depth to these beverages, enhancing the overall drinking experience.
Based on End Users
Retail Segment to Have Major Market
The retail distribution channel is utilized to its fullest extent in this market. Retail establishments such as liquor stores, supermarkets, and online marketplaces offer consumers various Flavored Whiskey options, making them accessible to individual purchasers. This channel allows consumers to investigate and purchase Flavored Whiskey products according to their preferences and availability. Additionally, the retail channel enables branding and marketing initiatives to target consumers directly through various promotional activities and displays, further driving sales. On the other hand, the HoReCa distribution channel concentrates on supplying Flavored Whiskey to hotels, restaurants, and cafés. This channel is essential for ministering to the needs of establishments that serve intoxicating beverages. HoReCa channel frequently requires bulk orders and direct relationships with suppliers or distributors to ensure a constant supply of Flavored Whiskey for establishments' customers. Although the HoReCa channel may not directly reach individual consumers, it plays a vital role in meeting the hospitality industry's demand for Flavored Whiskey in contributing to market expansion.
Based on Flavor Type
Citrus Flavored Whiskey to Account for Largest Market
Due to its reviving and tangy flavor, which appeals to various consumers, citrus Flavored Whiskey has become popular. The citrusy elements of lemon, orange, or grapefruit infused into the whiskey produce an invigorating flavor profile. Whiskey with a citrus flavor is frequently consumed neat or as a cocktail base, making it a versatile option for casual consumers and mixologists. Its popularity can be attributed to its ability to add a unique flavor to traditional whiskey and appeal to those seeking a more fruity and invigorating experience. Cider is another flavor available on the global Flavored Whiskey market. A whiskey flavored with apple cider has a unique flavor that combines whiskey's rich and warming qualities with the fresh and sweet notes of apple cider. This flavor is a distinctive and delectable combination of sweetness and the traditional whiskey flavor. Because it elicits a sense of intimacy and complements the flavors associated with the colder months, cider-Flavored Whiskey is commonly consumed during the autumn and winter. Its popularity stems from its ability to provide a harmonious blend of whiskey and cider, enticing those searching for a more nuanced and flavorful whiskey.
Based on Distribution Channel
Supermarkets and Hypermarkets segment dominated the Market
The hypermarket/supermarket segment is a crucial distribution channel for the global Flavored Whiskey market. Hypermarkets and supermarkets are large-scale retail stores that offer a wide variety of products, including Flavored Whiskeys, all under one roof. These stores are widely accessible to consumers around the world, making them a preferred shopping destination for alcoholic beverages. The presence of Flavored Whiskeys in hypermarkets and supermarkets provides an opportunity for consumers to explore and discover new flavors and brands. These stores often have dedicated sections or shelves for alcoholic beverages, making it convenient for consumers to browse and make informed purchasing decisions. Moreover, hypermarkets and supermarkets often collaborate with manufacturers and distributors to promote new products, conduct tasting sessions, and offer discounts or bundle deals on Flavored Whiskeys. This helps drive consumer awareness and boosts sales of Flavored Whiskeys within this segment.
Based on Region
Europe to Lead in Global Sales
In 2022, Europe was the dominant regional market. Firstly, Europe has a rich history and tradition of whiskey consumption and production, with countries like Scotland and Ireland being renowned for their whiskey production. This long-standing culture has created a strong demand for Flavored Whiskey in Europe. Moreover, the European palate is known for its appreciation of diverse and unique flavors. This has led to an influx of innovative and distinct Flavored Whiskey offerings in the market. From classic flavors like honey and vanilla to more unconventional ones like apple and chocolate, European consumers are open to trying new and exciting flavors.
The rise of craft distilleries in Europe has contributed to the growth of the Flavored Whiskey market. These smaller-scale producers are often more inclined to experiment with flavors and create unique products, catering to the growing demand for variety in the European market. Furthermore, Europe is a major tourist destination, attracting millions of visitors each year. This influx of tourists provides an opportunity for Flavored Whiskey brands to showcase their products and attract new customers from around the world.
Top Market Trends
- Growing Popularity of Whiskey-Based Cocktails: Whiskey-based cocktails, such as Old Fashioned and Whiskey Sour, have experienced a resurgence in recent years. This trend has contributed to increased consumption of Flavored Whiskey as bartenders and consumers experiment with different flavors to create unique cocktail experiences.
- Digital Marketing and Social Media Influence: The Flavored Whiskey market is heavily influenced by digital marketing tactics and social media platforms. Brands utilize social media influencers, online promotions, and engaging content to target and connect with consumers. This trend has helped raise awareness and generate interest in Flavored Whiskey among younger demographics.
- Innovation and Experimentation with Flavors: Companies are constantly introducing new and innovative flavors to attract consumers. For example, Fireball Cinnamon Whisky has become immensely popular, with its unique cinnamon flavor appealing to younger drinkers. Similarly, brands like Crown Royal and Jameson have introduced flavored variants such as apple, vanilla, honey, and coffee to cater to diverse consumer preferences.
The market for Flavored Whiskey is highly competitive due to the diversified product offerings of key participants and their increasing investments in strategic expansion. These factors are causing existing competitors to engage in intense competition. The key strategies of companies include portfolio expansion, joint ventures, capacity expansion, mergers and acquisitions, and brand promotion. To increase their consumer base, these businesses emphasize adding unique products to their portfolios and sourcing locally grown grains and spices to imbue a distinct flavor. For instance, in October 2018, La Martiniquaise-Bardinet, one of La Martiniquaise's subsidiaries, and Thistly Cross, a Scotland-based cider manufacturer, collaborated to produce a portfolio of single-malt products for the UK.
The key players in the global Flavored Whiskey market include - Brown-Forman Corporation (U.S.), Bacardi Ltd. (Cuba), Jim Beam Inc. (U.S.), The Crown Royal Company (Canada), The Old Bushnills Distillery Co. (Ireland), Pernod Ricard SA. (France), Diageo PLC (UK), William Grant & Sons (UK) among others.
Recent Market Developments
- June 2023: Godawan, an Indian whisky company, introduced a limited-edition single malt. Godawan 100 is a limited-edition expression that honours the great Indian bustard, a bird species specific to Rajasthan whose conservation the whisky company promotes through community collaborations.
- October 2022: William Grant & Sons launched an exclusive range of Glenfiddich whiskies for travel retail outlets. The collection comprised four unique whiskies: Vat 01 is 40% ABV, Vat 02 is 43% ABV, Vat 03 is 50.2% ABV, and Vat 04 is 47.8% ABV.
- March 2022: Diageo India launched Godawan Single Malt, a locally produced artisanal whisky. The company has expanded its national portfolio. Godawan was initially made available in Rajasthan and Delhi, with the company later announcing intentions to make the product available nationwide.
Segmentation of the Global Market
- Type (Bourbon, Scotch, Malted, Blended, Other Types)
- End Users (Retail, Hotel, Restaurant, Catering)
- Flavor Type (Citrus, Honey, Caramel, Cider, Apple, Cinnamon)
- Distribution Channel (Hypermarket/Supermarket, Departmental Stores, Liquor Stores, Specialty Stores, E-commerce)
- Region (North America, Europe, Asia Pacific, Latin America, Middle East & Africa)
|Regions & Countries Covered
- North America - (U.S., Canada, Mexico)
- Europe - (U.K., France, Germany, Italy, Spain, Rest Of Europe)
- Asia Pacific - (China, Japan, India, South Korea, South East Asia, Rest Of Asia Pacific)
- Latin America - (Brazil, Argentina, Rest Of Latin America)
- Middle East & Africa - (GCC Countries, South Africa, Rest Of Middle East & Africa)
- Brown-Forman Corporation (U.S.)
- Bacardi Ltd. (Cuba)
- Jim Beam Inc. (U.S.)
- The Crown Royal Company (Canada)
- The Old Bushnills Distillery Co. (Ireland)
- Pernod Ricard SA. (France)
- Diageo PLC (UK)
- William Grant & Sons (UK)
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