Description
The global gin market was valued at USD 14.0 billion in 2020 and is projected to reach USD 18.6 billion by 2027, growing at a CAGR of 4.9% during the forecast period 2021 to 2027. The alcoholic beverages market is evolving with technological enhancements in the global beverages industry, owing to an increase in the association of alcohols with the young and millennial population worldwide. The market offers several alcoholic drinks to customers, such as wine, beer, and spirits, of which gin is gaining popularity in the overseas market. Gin is a distilled alcoholic drink that opens up a broad range of options to cater to the growing demand for spirits. The trend to try different alcoholic drinks has led to a rise in the popularity of gin products in the global marketplace.
Premiumization continues to be one of the most important forces driving the global alcoholic beverage market. The craze for mixed drinks and handmade cocktails has fueled demand for premium cocktails. Artificial colorants and flavors are being phased out of pre-mixed and fresh cocktail recipes in the flavor of quality ingredients with a natural appeal. Gin is appreciated for its natural flavor and earthy appeal, and most on-trade counters use a large proportion of gin to provide premium beverages.
A paradigm shift has been witnessed in the consumer’s way of living for the past several years, owing to the fact that consumers are becoming more conscious of their health and intake of food and drinks. In addition, an alarming rise in the prevalence of ill effects on health due to alcohol consumption acts as a restraint of the market. Around 52% of the adult population are trying to reduce alcohol consumption in the U.S. Consumers are shifting their preference from spirits with high alcohol-by-volume such as gin, vodka, and others to low/zero alcoholic drinks, as per IWSR Drinks Market Analysis report 2020.
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COVID-19 Impact on the Global Gin Market
COVID-19 is an infectious disease that originated in the Hubei province of Wuhan city, China, in December. The highly contagious disease, caused by a virus, severe acute respiratory syndrome coronavirus 2 (SARS-CoV-2), is transmitted from human to human. Since the outbreak in December 2019, the disease has spread to almost 213 countries around the globe, with the World Health Organization (WHO) declaring it a public health emergency on March 11, 2020.
The global pandemic has hit the business world exhaustively at an unprecedented scale all across the world since 2020. The alcoholic beverages industry is one of the negatively impacted sectors that has witnessed significant disruptions, owing to the imposed lockdown and market closure. Consumer spending has further declined across entire alcoholic beverage categories such as vodka, whiskey, and gin. Amidst growing health concerns, travel & go-out restrictions, and closure of on-trade premises for liquor consumption, several companies faced the heat of the pandemic.
Global Gin Market Dynamics
Drivers: Wide utilization of gin in premium cocktails
Premiumization remains to be one of the major factors to drive the growth of the alcoholic beverages industry. The demand for premium cocktails is attributed to the increase in mixed drinks and crafted cocktails. Pre-mixed and fresh cocktail manufacturers utilize natural colorants & flavors and favor premium ingredients to meet the natural appeal of the drink. Gin is popular for its natural taste and offering of earthy appeal into the drink, and most of the on-trade counters are utilizing a huge quantity of gin to bring premium drinks.
According to the report published by the Bacardi Cultural Insights Network 2020, 37% of bartenders voted gin as the top spirit globally that premium cocktail and other alcoholic drinks. The emergence of modern on-trade channels in developing economies and an upsurge in disposable income further ensure higher consumption of gin-based cocktails, thus contributing toward the growth of the global market.
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Restraints: Rise in consumer inclination toward low/nonalcoholic drinks
A paradigm shift has been witnessed in the consumer’s way of living for the past several years because consumers are becoming more conscious about their health and intake of food & drinks. In addition, the rise in prevalence of ill effects on health due to alcohol consumption acts as a key restraint of the market.
According to the IWSR Drinks Market Analysis report 2020, approximately 52% of the adult population is trying to reduce alcohol consumption in the U.S. Consumers are switching their preference from spirits with high alcohol-by-volume (ABV) such as vodka and gin to low/zero alcoholic drinks. The IWSR further reveals that the volume of low/nonalcoholic spirits has increased by 32.7%. Thus, the sale of drinks with high ABV is expected to decline during the forecast period, thereby hampering the market's growth.
Opportunities: Introduction of craft spirits
The number of distilleries is rapidly increasing along with huge demand for varied spirits worldwide. Craft spirits are the next potential drinks in the market that will emerge as a new trend in developing and developed economies. In the U.S., spirits distilleries have grown by approximately 35% per year from 2011 to 2019. The craft spirits sale increased by about 20% (in terms of value) per year since 2012, and it is anticipated to reach 15–20% per year by 2022. The figures indicate that the market for craft spirits in the U.S. and other regions will be booming from 2021 to 2027.
Furthermore, gin manufacturers are focusing on new launches and product innovations of craft gin to cater to the changing demands of consumers, which boosts market growth. In addition, consistency in the launch of craft gin will help marketers develop strong market traction over the coming years, thus offering potential growth opportunities for the expansion of the market.
Scope of the Report
The study categorizes the gin market based on type, price point, and distribution channel at the regional and global levels.
By Type Outlook (Revenue, USD Million, 2017-2027)
- London Dry Gin
- Old Tom Gin
- Plymouth Gin
- Others
By Price Point Outlook (Revenue, USD Million, 2017-2027)
- Standard
- Premium
- Luxury
By Distribution Channel Outlook (Revenue, USD Million, 2017-2027)
- On-trade
- Off-trade
By Region Outlook (Revenue, USD Million, 2017-2027)
- North America (US, Canada, Mexico)
