Alcohol Gummies Market Expected to Reach $16.3 Million by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Alcohol Gummies Market," The alcohol gummies market size was valued at $10.9 million in 2021, and is estimated to reach $16.3 million by 2031, growing at a CAGR of 4.3% from 2022 to 2031.

Most frequently, vodka, whiskey, tequila, rum, and gin are used to dip alcohol gummies. The gummies come in a variety of flavors and are intended to be consumed as a party game or to get intoxicated. Most of the alcohol gummies market growth is related to consumer preferences for hand-made alcoholic confectionery like alcohol gummies and convenience, both of which will increase demand. While brand recognition will be important for segment growth, the market will shift more toward the premium segment as a result of the prevalent gifting culture in developed nations.

The market for alcohol gummies is expected to increase because of the key players' increasing innovation. For example, Smith & Sinclair produced alcoholic cocktail gummies in August 2021 by utilizing real, premium spirits and mixing them with fresh fruit, herbs, and syrups to imitate a classic cocktail. Finally, they coated the gummies with garnish-infused confections. The following 9 gummy boxes are currently available in Hong Kong and were developed so that adults might enjoy their favorite alcoholic beverages: Tequila Time, London Edit, Whiskey Club, The Party, The Night In, The Love Box, Summer Lovin', Let's Celebrate, and Gin Obsessed. Additionally, Texas-based Restart CBD introduced a shot marketed as an alcohol substitute for friend gatherings in July 2022 along with mood-altering candies.

Alcohol gummies' market expansion may be constrained by the adverse effects of excessive usage. For instance, alcohol gummies have a lot of sugar in them, so if one eat too many of them, one can get digestive issues, hair loss, nerve damage, sickness, bloating, constipation, and exhaustion.

According to the alcohol gummies market analysis, the market is analyzed on the basis of type, nature, distribution channel, and region. By type, the market is divided into spirit gummies and cocktail gummies. Further, the spirit gummies segment is divided  into whiskey, rum, vodka, and others. The spirit gummies segment occupied the major alcohol gummies market share of the market in 2021 and is projected to maintain its dominance during the alcohol gummies market forecast period. Various types of tequila, whiskey, vodka, and gin are used to make spirit gummies. Genuine premium tequila and fruit combinations are used to create gummies with 5% alcohol by volume (ABV) that are flavored with tequila, whiskey, vodka, and gin. The segment is expanding because of rising alcohol consumption.

By nature, the market is divided into alcohol infused and alcohol flavored. The alcohol infused segment is growing at a moderate rate during the forecast period. Gummies that have been prepared with alcohol are known as alcohol-infused gummies. Alcohol-infused gummies are produced using gin, rum, whiskey, and many other types of alcohol. Alcohol-infused gummies are rising in popularity, especially among young people.

By distribution channel, it is classified into online and offline. The offline segment is anticipated to grow at highest CAGR during the forecast period. The aim of manufacturers is to increase the visibility of their products on store shelves; as a result, they typically concentrate on specialized retailers. Alcohol gummies are now available in a wider variety at specialty stores. As specialty stores provide opportunities for discounts and the benefit of immediate satisfaction, the alcohol gummies market is expanding.

The region that dominated the global alcohol gummies market in 2021 was Europe, and this dominance is anticipated to continue throughout the forecast period. The region's market is primarily influenced by the rising customer desire for these products, their accessibility in a range of flavors, and the trend of consuming them on special occasions. According to European cultural customs, these handmade alcoholic confections are consumed on special occasions, vacations, and holidays. All these alcohol gummies market trends are creating alcohol gummies market opportunities in the global market.

Exporters in both developed and developing nations faced several difficulties because of the COVID-19 pandemic. The implementation of lockdown and curfew procedures on a global scale had an impact on both domestic and foreign manufacturers of alcohol gummies, which in turn hindered market expansion. As a result, the COVID-19 epidemic had a negative influence on the alcohol gummies market in 2020 as a result of decreased company sales and operations being suspended.

The major players analyzed for global alcohol gummies industry are Arewa Treats, Maggie Lyon Chocolatiers, Kate & Belle, The Candy Store, Sugarfina USA LLC, SugarSin, Inebriated Baker, Lolli & Pops, Smith & Sinclair US, and Squish Candies.

KEY FINDINGS OF STUDY

• By type, the spirit gummies segment was the highest revenue contributor to the market, with $6.5 million in 2021, and is estimated grow at a CAGR of 4.2% from 2022 to 2031.
• By application, the alcohol flavored segment was the highest revenue contributor to the market, is estimated to reach $10 million by 2031.
• By distribution channel, the online segment was the highest revenue contributor to the market, and likely to grow at a CAGR of 4.2% during the forecast period.
• Region wise, Europe was the highest revenue contributor, accounting for $4.7 million in 2021, growing at a CAGR of 4.0% during the forecast period.