Table Of Contents
Roshan Deshmukh
Vidit Gite
Gin Market: Unveiling the Next Frontier in the Global Spirits Industry
In the spirited kingdom of beverages, the spirits market stands as an attractive milestone with a perfect combination of tradition and innovation which skyrocketed its popularity among the different audience groups worldwide. The demand for spirits is steadily rising in the global marketplace by making consumer’s drinking experience unique, and gin is one of its most promising variants, enjoyed by a huge consumer base since past few years. Gin is associated with a rich story dating back centuries, an evergreen shrub-infused tonic has exceeded its origin land- Netherlands and has become a globally popular drink nowadays.
The gin has reinvented itself at a rapid pace and has become a trendy spirit due to the dramatic changes of consumer preferences for their drinks. Gin offers a distilled alcoholic drink to the consumers which meets their demand for unique and novel formulations and opens a broad range of options to cater to the growing demand for spirits. Gin market is evolving with increasing emergence of distilleries in the global beverages industry, owing to its increase in consumption among young and millennial population worldwide. The market offers several choices for drinks to consumers such as cocktails and is gaining huge popularity overseas. For instance, a report from Bacardi Cultural Insights Network 2022 has revealed that 37% of bartenders voted gin as the top spirit globally that offers a premium appeal to the cocktails and other alcoholic drinks. Thus, the consumption of varied and experimental drinks is some of the major gin market trends that have led to an increase in its popularity.
Top Impacting Factors
The global gin market is growing at a decent pace, and Europe is leading among all other regions, owing to the strong association of gin and consumers since the 17th century. In addition, gin is gaining immense popularity in other parts of the world with Asia-Pacific offering a huge potential to the manufacturers of gin by launching new variants that match consumer preferences. This is attributed to the fact that consumers in this region are rapidly adopting western culture by dining out and becoming more social. As a result, they are seeking varied and innovative drinks such as cocktails and mixed drinks. Thus, the consumption of gin is rapidly increasing in Asia-Pacific, as the servings of cocktails have increased due to on-trades, at home drinking patterns, and ready-to-drink (RTD) products.
The hunt for authenticity while drinking has been possible due to improved awareness of the service being provided and rise in spending power of consumers. Moreover, consumers continue to prefer quality over quantity, which is positively impacting the sales of premium spirits. According to the Distilled Spirits Council of the United States (DISCUS) 2022, luxury spirits in North America represented 40% in 2020. The steadily increasing consumption of premium & luxury spirits category further boosts the demand for premium gin products. However, Asia-Pacific is the fastest growing region in the world, owing to the increasing disposable income and interest toward luxurious experiences.
Factors Impacting the Growth of Sales of Gin in Asia-Pacific
- Westernization
- Dine-out Trends
- Rise in Adoption of Cocktail Culture
- Gin Tourism
- Increasing Capitalization by Manufacturers
Modernization in developing regions such as Asia-Pacific and LAMEA is another factor augmenting the demand for premium alcoholic drinks such as gin and others. Rise in such demand encourages marketers to open modern on-trades. Furthermore, manufacturers are parallelly emphasizing innovations in product formulations. However, the market is facing significant challenges due to increasing concerns among consumers over their health, resulting in the low or no consumption of alcoholic beverages. On the contrary, sustainability is becoming the most adopted business strategy among gin manufacturers, which is anticipated to attract consumers looking for sustainable products in the market.
Conclusion
Gin has experienced a commendable recovery and popularity worldwide, evolving from luxurious cocktail ingredient to a type of standalone artisanal spirit. The hunt of consumers in the authenticity while drinking plays a major role in crafting and formulating novel gin products among the manufacturers.
Some of the key players profiled in the gin market analysis include Diageo plc., William Grant & Sons Limited, Bacardi Limited, Pernod Ricard S.A., San Miguel Corporation, Southwestern Distillery, Davide Campari-Milano N.V., Remy Cointreau, Lucas Bols, and Forest Spirits’ Gin.
According to the IWSR Drinks Market Analysis report 2020, approximately 52% of adult population are trying to reduce the alcohol consumption in the U.S. As a result, consumers are shifting their preference from spirits with high alcohol-by-volume (ABV) such as vodka, gin, and others to low/zero alcoholic drinks. The IWSR further reveals that the volume of low/nonalcoholic spirits has increased by 32.7%. Thus, the drinks with high ABV are expected to face significant challenges during the forecast period.
