The tremendously rising demand for premiumized and high-quality Craft Spirits Marketamong consumers is driving the global market of craft spirits. The Growth in the craft spirits sector is prominently attributed by the growing social acceptability of mild alcohol consumption among consumers, especially amongst the youth. The rapid emergence of demand for premium quality craft spirits owing to changing cultural attitudes of the young and affluent population is a major contributor to the growth of craft spirits market worldwide.
The whiskey segment is expected to hold a significant share in the global market of craft spirit. The unique flavor, taste, and texture offered by the juniper berries in the preparation of whiskey is anticipated to increase the sales of whiskey. The product innovations such as flavored whiskey is further anticipated to impact the sales of whiskey positively. Furthermore, the increasing popularity of gin among consumers is expected to boost the demand for gin. The players operating in the market are focused on new product launches to fulfill consumer demand. For instance, in August 2019, Downton Abbey has expanded its product portfolio with the launch of new super-premium London Dry Gin.
The prominent industry players are embarking upon various business activities and strategies such as adopting new marketing technques, expanding product portfolio, and merger and acquisition activities to increase their prominence in the global market. For instance, in August 2017, Diageo has completed 100% acquisition of one of the fastest-growing tequila brand Casamigos. Diageo has paid USD 1 billion to acquire Casamigos.
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The rising demand for premiumized alcoholic beverages is expected to drive the global craft spirit market during the forecast years. The tremendously increasing number of craft spirit distilleries is anticipated to boost the sales of craft spirit. For instance, in 2018, the number of craft distilleries in the United States raised by 15.5% to 1,835 distilleries, according to the American Craft Spirit Association. High-end hotels and restaurants are keen to bring craft spirit into their portfolio. Furthermore, in the growing culture of pubs and night clubs, craft spirit businesses are gaining momentum across various parts of the globe.
The customer preferences about craft spirit seem to be associated with the innovation of fresh flavors, exploration of quality as well as product craftsmanship. The changing consumer taste and expectations is gradually altering their buying behavior which triggers them to favor on-trade consumption of craft spirits. Therefore, an increasing number of restaurants and brewpubs are anticipated to leverage the sales of craft spirit positively. Furthermore, the perception towards the consumption of alcoholic beverages has changed and the young generation is casual about the habit of consuming alcohol which in turn is expected to increase the sales of craft spirits..
Top Key Players of Craft Spirits Market:-
- Diageo Plc.,
- Pernod Ricard,
- Remy Cointreau,
- William Grant and Sons Ltd.,
- Rogue Ales,
- Anchor Brewers and Distillers,
- House Spirits,
- Copper Fox Distillery,
- and Others.
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The constant changes in consumer preference with the emergence of healthy food products and exotic flavors are expected to boost the global Craft Spirits Market growth in the coming years. Also, the increasing adoption of food delivery services, namely, Zomato, Swiggy, and Deliveroo across the globe is one of significant trends that would accelerate growth with time. Apart from that, the introduction of convenient packaging, such as bowl-based food items featuring kale and quinoa is anticipated to propel consumers to look for healthy and quick eating options. Therefore, key players are trying to better understand the lifestyle of their larger consumer bases for keeping up with their changing preferences.
COVID-19: Shutdown of Restaurants and Cafes May Hinder Growth
The outbreak of the COVID-19 pandemic worldwide has taken a toll on the Craft Spirits Industry. Almost every offline food chain, such as cafeterias and restaurants are shut down completely in various countries. But, online food delivery services are still under operation. In addition to this, companies manufacturing packaged food and beverages are exhibiting a high rate of sales because of their possession of certain beneficial properties. These products have long shelf-lives and hence consumers are stocking up their pantries, fearing the lockdown.
Key Industry Developments:-
- In January 2019, Jameson announced the launch of its new bottle of Irish Whiskey. The bottle is made using pressure sensitive label technology at Irish Distillers’ Fox and Geese bottling facility in Dublin, which allows for split labels to be applied to the glass bottles
- In December 2016, Pernod Richard announced the complete acquisition of Smooth Amebler. This acquisition is expected to help the Pernod Richard to increase their market prominence.
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