Flavored Alcohol Market Expected to Reach $1793.7 Billion by 2032—Allied Market Research

Flavored Alcohol Market

Report Code : A271286

quote The popularity of flavored alcohol has been driven by changing customer preferences and a demand for unique and delicious beverages. Beyond traditional spirits, consumers are craving for new flavor experiences. Furthermore, the growing popularity of artisan cocktails has created a need for flavored spirits and liqueurs to be used in the creation of unique and complicated drinks. quote

Naga Surya Sanka - Manager
Food and Beverages at Allied Market Research

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According to a new report published by Allied Market Research, titled, “Flavored Alcohol Market," The flavored alcohol market size was valued at $1.2 trillion in 2022, and is estimated to reach $1.8 trillion by 2032, growing at a CAGR of 4.6% from 2023 to 2032.

Flavored alcoholic drinks refers to beverages that contain alcohol and are infused with various natural or artificial flavors to enhance their taste profile. These drinks are created by blending alcohol, such as spirits like vodka or rum, with flavoring agents, which can include fruits, herbs, spices, or other ingredients. The flavoring agents are typically added during the production process to impart distinct and appealing taste characteristics to the alcoholic base. Flavored alcoholic drinks include a wide range of products, such as ready-to-drink cocktails, flavored spirits, and mixed alcoholic beverages, providing customers with a number of options in terms of taste, scent, and overall sensory experience.

The flavored alcohol market is influenced by various factors that contribute to its growth and development. Consumers are increasingly seeking a wide range of flavor options in their alcoholic beverages, and flavored alcohol caters to this demand by offering diverse and unique taste experiences. Millennials and Generation Z consumers are more inclined to experiment with different flavors, which is a significant factor driving the flavored alcohol market growth. Also there are some flavored alcohol products that are marketed as low-calorie, low-sugar, or healthier alternatives, catering to consumers who are mindful of their dietary choices. All these factors are anticipated to drive the flavored alcohol market growth during the forecast years.

Flavored alcohol products are high in sugar and calories, which contribute to health issues like obesity and diabetes when consumed in excess. In addition, excessive alcohol consumption can lead to a range of health problems, including addiction and liver disease. The sweet and fruity flavors of some flavored alcohols can make them more appealing to underage drinkers, potentially contributing to underage drinking problems. The pleasant taste of flavored alcohols can mask the strong alcoholic content, leading to overconsumption and a higher risk of alcohol-related accidents and injuries. All these factors are anticipated to restrain the market growth in the upcoming years.

Consumers’ desire for exploration and variety is driving them to seek out distinctive and innovative taste sensations. The rise of flavored spirits with unusual flavors, such as bacon, sriracha, or lavender-infused vodka, which cater to daring consumers seeking interesting and unique flavor characteristics. Craft and artisanal flavored spirits are gaining popularity among consumers owing to their excellent quality, small-batch manufacture, and unusual taste combinations. The increase in the number of small-scale distilleries and craft manufacturers experimenting with new tastes, botanical blends, or unique component combinations to create distinct and innovative flavored spirits is a notable trend in the spirits and beverage industry. These factors are anticipted to boost the flavored alcohol market opportunities in upcoming year.

The flavored alcohol market is segmented on the basis type, flavor, distribution channel, and region. By type, the market is divided into vodka, rum, whiskey, wine, beer, and others. By flavor, the market is classified into pineapple, passion fruit, black currant, lime, apple, cherry, and others. By distribution channel, the market is classified into supermarket/hypermarket, specialty retailers, convenience stores, e-commerce, and others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA

The key players profiled in the flavored alcohol market analysis report include Kerry Group, Cargill Inc., ADM, Givaudan, Symrise AG, TOSHEV, Austria Juice, MANE, Dakini Health Foods., and Castel Group.

The report offers a comprehensive analysis of the global flavored alcohol market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working towards the growth of the market. The report also highlights on the present scenario and upcoming trends & developments that are contributing toward the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers and suppliers, threats of new players, and emergence of substitutes in the market.

Impact of COVID-19 on the Global Flavored Alcohol Industry

  • Due to the COVID-19 pandemic, governments were compelled to close countless pubs, restaurants, and taprooms in order to maintain social distance norms. This had a negative influence on the global flavored alcohol market growth.
  • Total brewery sales in the U.S. fell 30.5% in May 2022 compared to the previous year, according to a Brewers Association report. As year-on-year sales declined in April 2022 nearly 89% of breweries either stopped or delayed production.
  • However, as the COVID-19 situation steadily improved, with fewer limitations imposed on foodservice channels, the flavored spirits industry returned to historically high levels.

Key Findings of the Study

  • Based on type, the whiskey sub-segment emerged as the global leader in 2022 and the vodka sub-segment is anticipated to be the fastest growing during the flavored alcohol market forecast period.
  • Based on flavor, the pineapple sub-segment emerged as the global leader in 2022 and the apple sub-segment is predicted to show the fastest growth in the upcoming years.
  • Based on distribution channel, the specialty retailers sub-segment emerged as the global leader in 2022 and is predicted to show the fastest growth in the upcoming years.
  • Based on region, the Europe market registered the highest flavored alcohol market share in 2022 and is projected to maintain its position during the forecast period.


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quote Flavored Alcohol Market by Type (Vodka, Rum, Whiskey, Wine, Beer, Others), by Flavor (Pineapple, Passion Fruit, Black Currant, Lime, Apple, Cherry, Others), by Distribution channel (Supermarket/Hypermarket, Specialty Retailers, Convenience Stores, E-Commerce, Others): Global Opportunity Analysis and Industry Forecast, 2023-2032 quote

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