Cocktail Market - Forecast 2022 - 2027
The cocktail Market size is estimated to reach $1.47 billion by 2027, growing at a CAGR of 11.6% during the forecast period 2022-2027. Cocktail indicates an alcoholic drink, which includes gin, brandy, vodka, whiskey, tequila, or rum blended with other constituents like fruit juice, cream, honey, milk, sugar, herbs, or additional flavorings. Discriminating approaches are rising amidst novel alcohol enthusiasts, who are looking for great-quality drink experiences fuelling another influx of premiumization across spirit categories, inclusive of the canned format of premium-adapted cocktails. Digital drinking is the order of the day wherein technology is utilized right from the comfort of home and spirits are transferred directly to the doorstep.
The wish for differentiation, for the insta worthwhile drink containing gin, brandy, vodka, whiskey, tequila, or rum to share on social media and the trend towards opulence is set to drive the Cocktail Market. The soaring innovations and diverse assortment of products to fulfill the requirements of consumers are set to propel the growth of the Cocktail Market during the forecast period 2022-2027. This represents the Cocktail Industry Outlook.
Report Coverage
The report: “Cocktail Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Cocktail Market.
By Type: Long Drink, Short Drink.
By Application: Wedding Ceremony, Backyard Barbeque, Cocktail Party, Others.
By Geography: North America (the U.S, Canada, and Mexico), Europe (Germany, France, UK, Italy, Spain, Russia and Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia, Rest of South America), and Rest Of The World (Middle East, Africa).
Key Takeaways
- Geographically, North America Cocktail Market accounted for the highest revenue share in 2021 and it is poised to dominate the market over the period 2022-2027 owing to the existence of the U.S. which has the biggest market share, and the increased intake of alcoholic drinks in the North American region.
- Cocktail Market growth is being driven by the proliferating intake of alcoholic drinks worldwide and the willingness of customers to experiment with novel innovative products. However, alcohol is medically confirmed to be injurious to health bringing about depression, alcoholism, and liver issues which are some of the major factors hampering the growth of the Cocktail Market.
- Cocktail Market Detailed Analysis on the Strength, Weakness, and Opportunities of the prominent players operating in the market will be provided in the Cocktail Market report.
Cocktail Market: Market Share (%) by Region, 2021
Cocktail Market Segment Analysis – By Type:
The Cocktail Market based on type can be further segmented into Long Drink and Short Drink. The Long Drink Segment held the largest market share in 2021. This growth is owing to the surging consumption of Long Drink especially in countries like Finland. A Long Drink or tall drink is an alcoholic drink that is blended and comes in a comparatively large volume (> 12 cl, frequently 16–40 cl or between 5–9 fluid ounces). The surging preference for Long Drink owing to it being lighter and not providing a bloated feeling is further propelling the growth of the Long Drink segment.
Furthermore, the Long Drink segment is estimated to grow with the fastest CAGR of 12.1% during the forecast period 2022-2027 owing to it being an alcoholic drink blended with non-alcoholic constituents and having less potency than short drinks where alcohols are flavored with other alcohols and thus long drink may be the preference for more mindful consumers.
Cocktail Market Segment Analysis – By Application:
The Cocktail Market based on the application can be further segmented into Wedding Ceremonies, Backyard Barbeque, Cocktail parties, and Others. The Wedding Ceremony Segment held the largest market share in 2021. This growth is owing to the extensive utilization of customized cocktails in wedding ceremonies in western countries. Usually, tailor-made cocktails as per the choice of the bride and groom are prepared especially for the bride and groom to mark the celebrations. The soaring symbolization of a wedding ceremony through a wedding cocktail which is an alcoholic drink mixed with maybe fruit juices or other preferred constituents is further propelling the growth of this segment.
Furthermore, the Backyard Barbeque segment is estimated to grow with the fastest CAGR of 12.3% during the forecast period 2022-2027 owing to the extensive utilization of classic low-proof cocktails like Americano Cocktail which is a blend of alcoholic drinks like Campari and sweet vermouth with club soda.
Cocktail Market Segment Analysis – By Geography:
The Cocktail Market based on geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America (Cocktail Market) held the largest share with 38% of the overall market in 2021. The growth of this region is owing to the soaring consumption of alcoholic drinks in the region. The soaring demand for on-the-go products in diverse flavors and the existence of key players like Miami Cocktail Co. in the region are further propelling the growth of the Cocktail Market in the North American region.
Furthermore, the Asia-Pacific region is estimated to be the region with the fastest CAGR rate over the forecast period 2022-2027. This growth is owing to factors like enhanced lifestyle owing to greater income of communities in the Asia-pacific region. The surging demand for premium, convenient, and quality cocktails resulting from the burgeoning influence of western culture in conjunction with the surging demand for vodka and whiskey-based beverages is further fuelling the progress of the Cocktail Market in the Asia-Pacific region.
Cocktail Market Drivers
Novel Cocktail Trends Are Projected To Drive The Growth Of Cocktail Market:
The outbreak of the COVID-19 pandemic has made consumers worldwide more mindful and health-conscious. The upcoming year 2022 will witness customers demand ingenious, ethical, long-term solutions that convey real social change. With the increasing significance of enterprises that authorize communities and propel localism, hyper-local delivery is anticipated to go mainstream owing to the pursuit of consumers to stabilize their wish for convenience with exploration for sustainable solutions. While recyclability and zero-waste cocktails shaped the core of sustainable action this year, 2022 will witness greater initiatives formed by a focus on how spirits are prepared, with an enormous majority of people now willing to pay more for ethically sourced regenerative refreshments. There is an increase in sober-curious consumers, happy to switch between sober nights and drinking occasions, with 58% drinking more non-alcoholic and low-ABV cocktails (NoLo) worldwide than a year before. A conscious attitude is leveraging an inclination towards organic choices in 2022 with one-third of people in the U.S. and half in the U.K. viewing natural constituents as a determinant in their cocktail choices, a traditional alcoholic drink, a trend that is starting to influence the manner consumers to imbibe in emerging markets. These cocktail trends are therefore fuelling the growth of the Cocktail Market during the forecast period 2022-2027.
Innovations In Cocktails Are Expected To Boost The Demand Of Cocktail:
The cocktail is an alcoholic drink blended with additional constituents like fruit juice, flavored syrup, or cream. With the soaring diversity of constituents becoming accessible globally, the possibilities are limited only by the human mind and words. There appears to be seemingly infinite innovations in producing cocktails. Apprehension of developing something unpalatable is frequently what holds people back from freely experimenting. However, if it is regarded that every individual has a rare palate, there are technically no bad drinks. Therefore, infinite cocktail recipes are closely related to the individual tastes and the words utilized to depict them. The beginnings of the cocktail and mixology (the art of mixing drinks) are cloaked in mystery. Archaeological discoveries demonstrate that numerous ancient civilizations had the routine of generating fermented drinks which they blended with different constituents like honey, spices, and diverse fruit juices. Admittedly in these early civilizations, the intention of blending was not essentially for drinking pleasure but to turn these fermented drinks less unpleasant. From these ancient periods to the modern digital age where cocktails may be ordered online and are unconventional the bacon fat-washed Bacon Me Angry which is a concoction uniting bacon fat, vodka, maple syrup, bitters, and apple cider, has been a transformative journey for cocktails too. The proliferating innovations in cocktails are therefore driving the growth of the Cocktail Market during the forecast period 2022-2027.
Cocktail Market Challenges
Limitations Of Cocktails Present Challenges To The Growth Of The Cocktail Market:
Cocktail being an alcoholic drink, essentially has the identical disadvantages as that of alcohol. The limitations of consuming cocktails are loss of self-control and heavy intake can bring about damage to the liver. It can bring about slow and advanced degeneration of the nervous system. It can result in an excessive gain of weight which is basically a condition termed obesity. Addiction, sedation, and demise may also happen. Severe conditions that may result include acute alcohol poisoning and chronic alcohol intoxication. The disadvantages of Cocktails are thus hampering the growth of the Cocktail Market.
Cocktail Market Landscape:
Novel product launches and partnerships are key strategies adopted by players in this market. Cocktail top 10 companies include:
- Diageo plc
- Bols
- Siam Winery Co. Ltd.
- kitchn
- Cointreau
- Belvedere
- Rio Wine
- Snake Oil Cocktail Company
- Miami Cocktail Co.
- Bombay Sapphire
Acquisitions/Product Launches:
- In November 2021, Diageo introduced a novel accountable drinking global campaign “Know When to Stop,” which planned to make people stop and think about overindulgence in the course of the festive period. By way of a series of digital animations, the campaign demonstrates what happens when typical holiday pleasures like consuming sweet treats, binge-watching TV and films, and over-decorating the home can evolve into one too many. Introduced across Diageo’s social channels, “Know When to Stop” is part of the firm’s dedication to reaching one billion people with committed responsible drinking messaging by 2030 and to educating people on the hazards of the injurious application of alcohol as part of the firm’s 10-year action plan, Society 2030: Spirit of Progress.
- In November 2021, Captain Morgan declared a brand novel flavor to append to their line-up of spirits - a Sliced Apple Spirit Drink. Highlighting autumnal flavors, the spirit is flawlessly in time for Bonfire Night, as it officially went accessible in Asda stores across the country. The captain has acknowledged the prayers of fans, as there has been a colossal upsurge in demand for flavored spirits currently and the novel spirit appears to be another crowd-pleaser.
- In November 2021, Bombay Sapphire Gin declared the introduction of its earliest campaign film committed to the Bombay & Tonic cocktail in Australia. Titled ‘Stirred’, the film was brought to life by acclaimed director Alan Masferrer and demonstrates to viewers that the flawless gin and tonic goes far beyond being a cocktail – it is an experience for the senses. All through the narrative, all five senses (sight, sound, taste, scent, and touch) are mirrored, displaying the brilliant, novel, botanical flavor profile of the heralded, vapor-infused London Dry Gin from Bombay Sapphire, integrated with the accurate balance of excellent tonic water.
