Asia Pacific Spirits Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 5.49 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Asia Pacific Spirits Market Analysis
The Asia-Pacific spirits market is projected to record a CAGR of 5.49% during the forecast period.
Rising demand for ethnic premium, super-premium spirits, and flavored spirits, which include artisanal varieties, has increased among Asian consumers, fuelling the spirits market's growth in the past decade. With rising income levels and improved spending on alcohol products, whether for in-house consumption or at a bar/pub, the spirits market has witnessed an elevated growth rate in terms of value and volume over the past decade. The spirits market in the Asia-Pacific region is highly diversified in terms of consumption patterns and products, mainly due to the differences in tastes and preferences and the social and cultural behaviors across different nations. The market studied has been growing at a healthy pace, owing to the increased demand for premium alcohol.
Rising incidences of eating outside and clubbing among youngsters have been driving the spirits market's growth in Asia-Pacific. The increasing demand for health and wellness beverages that are infused with bioactive compounds has been boosting the cannabis beverage market's growth. Influenced by the prevailing trends, several key companies have been developing innovative cannabis-based spirit beverages. Asia-Pacific has a large millennial consumer base, which has been encouraging key players to expand their geographic presence and increase their consumer base in the region, thus supporting the premium spirits market's growth in the region. The market studied is highly competitive, with major players, such as Pernord Richard, Suntory Holdings Limited, ThaiBev, Diageo, and Asahi Group Holdings, holding a significant share.
Asia Pacific Spirits Market Trends
Increasing Expenditure on Alcoholic Beverages in the Region
The major driving factor for the growth of spirits and other forms of alcohol consumption in countries like China, Japan, Malaysia, and Singapore has been an increase in spending patterns and a rise in per capita consumption of alcohol due to higher income levels. The demand for spirits in the region is also driven by the high-classed millennials who wish to go out to social gatherings, leading to the consumption of their favorite liquors. The trend is even influenced by the concept of partying developed in the Western part of the world, as more Asian youth consumers want to get involved in drinking habits at an early age, which may boost the overall market. To data cited by IMF and World Bank, there has been a consistent rise in the overall expenditure made by Asian consumers on alcohol and tobacco products, which has been leading to the growth of the overall market. An estimate has been made that total expenditure is likely to reach around USD 425 billion by 2025.
There has been an influx in the growth of the spirits market in smaller countries, such as Thailand, Malaysia, Singapore, and Indonesia, as they have been adopting the culture of drinking across social gatherings. A lot of Southeast countries, being hotspots of tourist destinations, have been experiencing high demand for alcohol. Hence, the rise in consumer spending and changing lifestyle of millennials toward consuming alcohol have been driving the market for spirits in the Asia-Pacific region.
China Accounts for the Largest Market Share in the Region
Chinese consumers are more likely to connect drinking with personal occasions, relaxation, or indulging themselves. Studies found that China will surpass the other top countries in alcohol intake per capita by 2030. Chinese adults are projected to drink more than 10 liters annually on average and per capita consumption of alcohol, making it one of the largest markets for spirits during the forecast period. Owing to high economies of scale, players operating in the market are focusing on adopting strategic measures, such as partnerships, and expanding their presence in the country. In 2020, Roust Group partnered with Beijing Soko to launch the premium Russian spirit Russian Standard Vodka in China with an aim to boost sales.
Chinese consumers' awareness and understanding of imported spirits are rapidly becoming more sophisticated. High-end whiskey bars and premium quality gins are already found in China's largest cities. Traditionally, China is a brandy market. Even vodka, a spirit often compared to local baijiu, is registering strong growth. Under the spirits market, baijiu, the local spirit of China, is reported to witness the highest demand in China. According to the data on Taobao and Tmall, the e-commerce platforms run by Alibaba Group, baijiu sold most bottles in China compared to the other craft spirits, holding roughly 77% share of spirit sales from the past few years. International players in Chinese spirits accounted for a relatively small share. Thus, global spirits manufacturers are partnering with local Chinese distilleries to build stronger brand awareness among local consumers due to enormous growth opportunities for imports at the high end, particularly for whiskey, cognac, and premium baijiu.
Asia Pacific Spirits Industry Overview
The Asia-Pacific spirits market is competitive, comprising both regional and international manufacturers. Players like Bacardi Limited, Diageo PLC, Thai Beverage PLC, Suntory Holdings Limited, and Pernod Ricard SA dominate the market. Regional sprits are also dominating sales in some specific regions. These companies are increasing their investments in research and development (R&D) and social media marketing and expanding their geographical presence to maintain their position in the market. New product development, partnership, and expansion are some of the most preferred strategies by the spirits industry in the Asia-Pacific region. For instance, in August 2022, China's leading independent distributor, China Bev, announced that it would launch 818 Tequila in on-trade venues across Beijing, Shanghai, Guangzhou, Chengdu, and Shenzhen.
Asia Pacific Spirits Market Leaders
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Bacardi Limited
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Diageo plc
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Pernod Ricard SA
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Thai Beverage PLC
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Suntory Holdings Limited
*Disclaimer: Major Players sorted in no particular order
Asia Pacific Spirits Market News
- In January 2023, Spirits maker Campari announced to launch nine new products across different categories in India, where it sees rising consumption and greater premiumization. The maker of Aperol, Campari, Skyy Vodka, and Wild Turkey in India announced that it would bring its Bisquit & Dubouché cognac, Appleton Aged rum, The Glen Grant 21 Arboralis whisky, agave spirit Montelobos Mezcal, Espolon Tequila, a liqueur Frangelico, and bitter aperitif Cynar to the Indian market.
- In March 2022, Diageo-controlled United Spirits Ltd (USL) announced that it would acquire a minority 22.5% stake in Nao Spirits for INR 31.5 crore. Nao Spirits is an emerging craft gin company in India, with brands including 'Greater Than' and 'Hapusa.'
- In March 2022, Bacardi India, the largest international spirits company in the country by volume, announced its foray into the brandy and IMFL (Indian-Made Foreign Liquor) category with the launch of Good Man, the company's first-ever innovation for Indian consumers. Strengthening its brown spirits play, Bacardi India is focused on disrupting the premium brandy segment by offering India's modern-day consumers an unparalleled experience with its latest innovation.
Asia Pacific Spirits Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Product Type
5.1.1 Whiskey
5.1.2 Vodka
5.1.3 Rum
5.1.4 Brandy
5.1.5 Other Product Types
5.2 Distribution Channel
5.2.1 Specialty/Liquor Stores
5.2.2 Online Retail Stores
5.2.3 On-trade
5.2.4 Other Sales Channels
5.3 Geography
5.3.1 India
5.3.2 China
5.3.3 Japan
5.3.4 Australia
5.3.5 Rest of Asia-Pacific
6. COMPETITIVE LANDSCAPE
6.1 Market Share Analysis
6.2 Strategies Adopted by Leading Players
6.3 Company Profiles
6.3.1 Allied Blenders & Distillers (Officer's Choice)
6.3.2 Bacardi Limited
6.3.3 Diageo PLC
6.3.4 LVMH Moët Hennessy Louis Vuitton
6.3.5 Pernod Ricard SA
6.3.6 Asahi Group Holdings Ltd
6.3.7 Thai Beverage PLC
6.3.8 Suntory Holdings Limited
6.3.9 Wuliangye Yibin Co.
6.3.10 Yanghe Global
6.3.11 Davide Campari-Milano NV
6.3.12 Remy Cointreau SA
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Asia Pacific Spirits Industry Segmentation
Spirit is an alcoholic drink produced by distillation and includes brandy, gin and genever, liqueurs, rum, specialty spirits, tequila and mezcal, vodka, and whiskey.
The Asia-Pacific spirits market is segmented by product type (whiskey, vodka, rum, brandy, and other product types), distribution channel (specialty/liquor stores, online retail stores, on-trade, and other sales channels), and geography (India, China, Japan, Australia, and Rest of Asia-Pacific). The report offers market size and values in (USD million) during the forecast period for the above segments.
| Product Type | |
| Whiskey | |
| Vodka | |
| Rum | |
| Brandy | |
| Other Product Types |
| Distribution Channel | |
| Specialty/Liquor Stores | |
| Online Retail Stores | |
| On-trade | |
| Other Sales Channels |
| Geography | |
| India | |
| China | |
| Japan | |
| Australia | |
| Rest of Asia-Pacific |
Asia Pacific Spirits Market Research FAQs
What is the current Asia-Pacific Spirits Market size?
The Asia-Pacific Spirits Market is projected to register a CAGR of 5.49% during the forecast period (2024-2029)
Who are the key players in Asia-Pacific Spirits Market?
Bacardi Limited, Diageo plc , Pernod Ricard SA, Thai Beverage PLC and Suntory Holdings Limited are the major companies operating in the Asia-Pacific Spirits Market.
What years does this Asia-Pacific Spirits Market cover?
The report covers the Asia-Pacific Spirits Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Asia-Pacific Spirits Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
APAC Spirits Industry Report
Statistics for the 2024 APAC Spirits market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. APAC Spirits analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
