Spirits are distilled alcoholic beverages containing at least 20% alcohol by volume (ABV) and no added sugar. Spirits are manufactured by fermentation and distillation processes. The distillation process is used to increase the proportion of alcohol content by removing diluting components from the fermented mixture. Spirits are also known as distilled beverages, hard liquor or liquor.
Spirits can be of different types such as vodka, gin, tequila, rum, whisky, brandy and others. Whisky is further classified into Irish, Scotch, single malt, bourbon and others, where Irish and bourbon leads the market. Vodka dominates global spirits market by revenue followed by whisky, however with respect to growth rate, whiskey is expected to grow the fastest followed by vodka and rum.
The introduction of new flavours into spirits, exposure to various cultures and growing number of breweries have led to the growth of specialty spirits. Speciality spirits like Baijiu, Sochu, Soju, Raki and Cachac¸a are region-specific traditional spirits that are produced regionally. Chinese Baijiu is the most popular liquor leading the specialty spirits market owing to its flavoured varieties with similar alcohol content as vodka. Another reason for popularity of speciality spirits include their versatility of being served with traditional foods in several Asian restaurants.
Factors like increasing health concerns among consumers and shift of preference towards quality over quantity are fuelling demand of organic whisky and craft spirits. Organic whisky distilleries prohibit the usage of artificial colours in order to enhance the whisky appearance making it more natural. Likewise, global spirits market is witnessing rise in demand of craft spirits due to the consumers’ preference for authentic and differentiated product.
Escalating demand from developing countries, innovative social media campaigns focusing on spirit brands and rising level of disposable income are contributing positively towards the growth of global spirits market. However, government regulations for alcohol, especially in high growth markets can restrict the growth.
ASDReport.com provides insightful industry analysis and research reports on the spirits market. These reports cover topics such as brandy, gin, vodka, whisky, distillery and several others.