Cocktail Syrups Market

Market Overview

The global cocktail syrups market size was valued at USD 4.2 billion in 2023. It is estimated to reach USD 6.6 billion by 2032, growing at a CAGR of 5.81% during the forecast period (2023–2032).

Cocktail syrups are an integral component of any quality cocktail. They are surprisingly simple to make at home and lend sweetness, flavor, and complexity to a drink. Cocktail syrups are sweeteners used to temper the bitterness of alcohol and add flavor to cocktails. They are available in various flavors, from simple syrup to syrup prepared with fruits, herbs, and spices. 

Since the 1800s, when cocktails became prevalent in Europe, syrups have been used in cocktails. The publication of Jerry Thomas's "How to Mix Beverages; or, The Bon Vivant's Companion" in the 1960s increased their popularity in the United States. Cocktail syrups are typically stored in the refrigerator and for one year in the freezer when not in use. Mixtures containing only sugar and water can last up to one month in the refrigerator. The shelf life of the mixture may be restricted to a few weeks if it comprises fresh fruit.

Market Dynamics

Global Market Drivers

Rising Demand for Cocktails

Globally, the consumption of alcoholic drinks is decreasing due to the rising consumers' focus on health and well-being. Cocktails contain a low amount of alcohol, ranging from 4% to 7%, along with added flavors like lemon, cranberry, orange, and passion fruit, attracting health-conscious consumers. Therefore, low alcohol by volume (ABV) cocktails have gained traction over the years. Hence, the increasing popularity of cocktails will widen the scope for cocktail syrups.

Consumers who want to minimize their alcohol consumption or are moderate drinkers consume cocktails as a substitute for wine and spirits. Changing lifestyles and demand for convenience products are also driving the cocktail syrups market growth. In addition, the cocktail industry is booming due to creative new recipes, such as natural fruit juices instead of sugar syrups. The cocktail market offers a wide range of novel items and healthy alternatives, such as those infused with ginger or lavender. As a result, bartenders are concentrating on developing new cocktails with healthy constituents. This will create opportunities for growth for cocktail syrup manufacturers.

Growing Inclination Toward Convenience

Cocktail syrups have gained significant popularity within the bar and pub industry due to their inherent convenience. One of the main factors driving the increase in demand for cocktail syrups is consumers' growing desire for ready-to-eat and ready-to-drink foods and beverages due to their hectic lifestyles and demanding work schedules. The surging working population, supported by the increasing number of working women, is estimated to drive the market for cocktail syrups.

Furthermore, numerous consumers who prefer serving homemade drinks at house parties and social gatherings drive the demand for these cocktail syrups. According to an article published by The Drinks Business in October 2021, 47% of cocktail consumers continue experimenting with kitchen mixology in the post-pandemic world. During the pandemic, consumers' willingness to experience high-quality cocktails at home expanded, directly contributing to the trend and a consumer quest to locate the best ingredients and get creative. Such trends are likely to elevate the demand for various cocktail syrups.

Global Market Restraints

Growing Demand for Non-Alcoholic Beverages

The consumption of non-alcoholic beverages is rising, especially in countries like France, the U.K., Germany, Spain, and Canada, owing to the rising health consciousness. Consumers are increasingly inclined toward non-alcoholic functional beverages that provide health benefits like boosting immunity and relieving stress. Similarly, probiotic-rich drinks' popularity has increased over the past few years. Therefore, the growing preference for non-alcoholic beverages may threaten the cocktail industry and restrict the application of cocktail syrups.

Global Market Opportunities

Outbreak of COVID-19

The outbreak of COVID-19 has offered significant growth opportunities to the global cocktail syrups market. With forced lockdowns, consumers no longer had access to pubs, restaurants, and bars that offer handcrafted cocktails. This encouraged consumers to prepare cocktails at home using cocktail syrups easily available in supermarkets/hypermarkets to quench their desire for alcohol.

The simple distribution of cocktail syrups through online platforms also offers prospects to the market players due to their convenient package designs. Therefore, many cocktail syrups with unique flavors and distinct tastes were launched even during the COVID-19 pandemic. For instance, in October 2020, Runamok Maple, a U.S.-based premium and organic maple syrup producer, launched a new range of maple cocktail syrups, including Maple Old Fashioned, Smoked Old Fashioned, Maple Tonic, and Maple Ginger Mule.

Regional Analysis

Based on region, the global cocktail syrups market is bifurcated into North America, Europe, Asia-Pacific, Central and South America, and the Middle East and Africa.

Europe Dominates the Global Market

Europe is the most significant global cocktail syrups market shareholder and is estimated to grow during the forecast period. The temporary closure of many bars, pubs, and restaurants across Europe during the COVID-19 pandemic has changed consumers' drinking patterns. It has influenced many consumers to reach for their alcohol cabinets at home and make their gourmet cocktails, thereby boosting the demand for cocktail syrups. The demand for low-alcoholic cocktails and flavored beverages is rising among millennials across the region, which is predicted to be a prominent factor driving the European cocktail syrups market growth. The consumption of cocktail syrups is highly popular in European countries like the U.K., Germany, and France, owing to various manufacturers offering innovative products.

Additionally, the premiumization of cocktail syrups through improved flavors, taste, quality, and packaging is further expected to drive the demand, thereby boosting the European market growth. For instance, Agua de Sevilla is a popular Spanish cocktail made using pineapple juice/syrup, sugar, cava, and whiskey. This cocktail is a staple at numerous nightclubs and is usually served in large pitchers, which is expected to drive the demand for cocktail syrups in the upcoming years.

North America is estimated to grow during the forecast period. The demand for cocktail syrups in the region is expected to rise as more young customers switch their tastes and preferences from standard alcoholic drinks to flavored alcoholic beverages. These cocktail syrups witness significant demand from commercial sectors such as bars, pubs, hotels, and restaurants. The rising number of commercial establishments mushrooming across North America will boost the demand for cocktail syrups. This industrial expansion, coupled with the increasing popularity of various cocktails among young and millennial customers, is opening up new avenues for the cocktail syrups market.

Additionally, consumers are driving manufacturers of cocktail syrups to launch new flavors to cater to this demand. Such product launches will continue to fuel the cocktail syrups market over the forecast period.

In Asia-Pacific, the demand and consumption of cocktails are gaining momentum as consumers seek safer and more mindful drinking options, a trend that the COVID-19 pandemic has accelerated. Several bartenders across the globe are increasingly taking mixology inspiration from Asian beverage trends. For instance, several flavorful cocktails made with fruit juices, freshly squeezed fruit pulps, and various other syrups have become popular in Japan among consumers who are reconsidering drinking beer or heavy spirits as they are worried about being hungover the next day. This has been driving the use of various syrups to create a host of cocktails.

The Central and South American cocktail syrups market's growth is characterized by increased consumer spending toward recreational activities and the rise in social acceptance to try new and unique drinks, which has boosted the demand for cocktails, thereby positively influencing the market growth. The change in consumers' drinking habits, coupled with the growing demand for different cocktails containing wine, whiskey, beer, vodka, and other cocktail syrups, will continue to witness growth in the upcoming years. This is expected to drive the cocktail syrups market growth in the region.

In the Middle East and Africa, the increased socializing among young, urban professionals coupled with the growing acceptance of social drinking has been positively influencing the consumption of cocktails, which is likely to drive the cocktail syrup market growth in the upcoming years. Moreover, cocktail syrups have increased sales as young consumers socialize more in restaurants, nightclubs, and bars.

Segmental Analysis

The global cocktail syrups market is segmented by product and flavor.

Based on the product, the global market is bifurcated into fruit, herbs and seasoning, vanilla, and others.

The fruit cocktail syrup dominates the global market and is projected to grow during the forecast period. Fruit cocktails are a healthier alternative to other sugary drink mixers. Fruit cocktails are typically made based on the consumer's preferred fruit or a combination of fruits. Monin, a renowned manufacturer of fruit purees and syrups, for example, offers a variety of fruit syrups, such as dragon fruit, passion fruit, red passion fruit, and coconut, that can be used in cocktails, desserts, and milkshakes, among others. 

In addition, growing health consciousness among consumers worldwide and the increasing popularity of homemade cocktails will likely drive the demand for fruit syrups in the coming years. The increased prevalence of diabetes, high cholesterol, and high blood pressure has also driven the demand for natural and healthier sweetening agents in foods and drinks. This bodes well for the fruit cocktail syrups segment.

Herbs and seasoning have been witnessing a remarkable demand from the commercial and household sectors due to their taste, flavor, and associated health benefits. For instance, basil syrup is widely used in cocktails due to its semi-sweet, spiced, and anise-like flavor. Basil offers a range of health benefits, including prevention from heart disease, arthritis, and diabetes. Over the last few years, herb- and seasoning-infused cocktail syrups have gained consumer traction. Herbs are a popular component in the winter months since they bring warmth to the body and a fresh aroma to the cocktails. This trend has grown in popularity among bartenders worldwide who serve cocktails with infused herbal syrups.

Additionally, numerous manufacturers have launched products to meet consumer expectations due to the growing popularity of herbal cocktails. The rising number of product launches is expected to contribute to the growth of the herbs and seasoning cocktail syrups segment.

Based on flavor, the global market is segmented into sweet, salty, sour, and mint. 

The sweet segment owns the highest cocktail syrups market share and is estimated to grow during the forecast period. Sweet cocktail syrups are widely popular among consumers worldwide because they perfectly balance the bitterness and sourness of harsh spirits like rum, whisky, and gin. Likewise, sweet syrups enhance the flavors of other ingredients used in the cocktail and improve the mouthfeel or density of the drink, making it taste less thin and enhancing the flavor; flavored syrups function as an artificial sweetener. In addition, manufacturers have started offering a wide selection of syrups with natural sweeteners in response to the growing taste of rich fruit syrups. For example, in June 2021, Torani, a leading flavor maker, added sweet flavors to its existing flavor lineup, which includes Puremade Mangonada Syrup, Puremade Chocolate Hazelnut Sauce, and Puremade Black Sugar Syrup.

Salt in cocktails brings out salty notes and flavors that may have been subtle in cocktails. It is also used to increase the sweetness and balance the bitterness. Salt further improves citrus in sours and can add depth and consistency to carbonated drinks. The food and beverage sector, in general, is powered by convenience. Therefore, products like salty cocktail syrups are gaining appeal among consumers who want to make cocktails at home without creating a mess. These syrups are pre-mixed with various flavors, including caramel, hazelnut, and salt. This combination provides customers with a unique combination of sweet and salty flavors.

For instance, Monin, a leading flavor and syrup manufacturer, offers Salted Caramel Cocktail Syrup. The syrup adds a sweet and salty flavor to the beverages. On the other hand, 18.21 Bitters has a floral lavender flavor and scent with a tinge of salt. In the foreseeable future, rising product innovations in the salty cocktail syrups segment will likely drive their market demand.

Recent Developments

• August 2022- Monin, a manufacturer of syrups, fruit blends, Frappé, and gourmet sauces, acquired 40 acres of land in Telangana to establish a manufacturing facility and has an in-house research and development center in Hyderabad to create new flavors and product categories. After entering India through the import route, Monin believes that the Indian cocktail market is large enough to warrant establishing a factory there.
• December 2022- Monin announced the introduction of a new product category, Le Crush de MONIN. It is a non-GMO, vegan, and gluten-free product line designed to satisfy the diverse tastes of Indians. It contains 35 percent teal fruit content and actual fruit fragments. Le Crush de MONIN crushes can lend a fruity kick to any drink, such as funky cocktails.