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Dark Spirits Market

Dark Spirits Market: Information by Type (Whiskey, Rum), Distribution Channel (Online, Offline), and Region — Forecast till 2030

Published At : 22 Aug, 2022
Updated At : 23 Aug, 2022
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Market Snapshot
Base Year:
2021
Study Period:
2020-2030
CAGR:
7.67 %
Fastest Growing Market:
North America
Largest Market:
Asia-Pacific

The global market for dark spirits was valued at USD 55.21 billion in 2021, and it is anticipated to reach USD 99.72 billion by 2030 at a CAGR of 7.67%. Dark spirits are a type of distilled liquor that become darker in appearance after being aged for an acceptable amount of time in barrels that have been sealed. Rum, brandy, cognac, bourbon, scotch whiskey, and wine are all examples of popular dark spirits that can be found in most stores. The fermentation of sugarcane molasses, barley, corn, wheat, and grapes is required to produce these in distilleries. To improve the flavour and colour of the spirits, they are aged in repurposed barrels that have had their interiors burned. Congeners are sometimes added to the processing of dark spirits to achieve better results from the fermentation process. In addition, liquor chocolates, candies, sauces, and marinades are all produced with the use of these ingredients. Dark spirits, when consumed in moderation, can help with the management of pain, the increase of bone mineral density, the prevention of the common cold and peripheral artery disease, and the maintenance of warm internal body temperatures.

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Market Dynamics

Global Dark Spirits Market Drivers

A rise in demand for dark spirits in the food and beverage industries

The food and beverage industry is experiencing substantial expansion on a global scale, which is one of the fundamental causes contributing to the positive outlook for the market. Dark spirits are frequently made available to customers in establishments such as restaurants, hotels, bars, and pubs. These establishments also frequently mix dark spirits with exotically flavoured juices and sparkling water to present customers with fresh experiences. Aside from this, bar owners are expanding their menus to include new drinks, such as dark spirit-based cocktails created with sparkling water and exotic fruit juices, as a result of the willingness of customers to explore novel combinations of ingredients. These beverages are also being utilized in the process of flavour enhancement.

Craft Spirits' increasing popularity is driving the market growth

Growing millennial and baby boomer demand for craft spirits in developed and developing nations is fueling the industry's expansion. The global market for black spirits has been expanding rapidly, and one factor contributing to this expansion is the development in the popularity of spiritual tourism. The market is further catalyzed by the development of new product varieties that fulfil customers' expectations due to the growing awareness and consciousness among consumers about clean labels, organic, natural, additives-free, and GMO-free alcohol, including black spirits. The dark spirits industry has profited from the sharp rise in popularity of online grocery shopping and delivery services.

Global Dark Spirits Market Opportunities

The increasing popularity of e-commerce platforms

Online grocery shopping and delivery services have seen considerable popularity over the past five years. The pandemic contributed significantly to the acceleration of the development of such platforms. As a direct consequence, industry stakeholders that are actively involved have formed partnerships with pre-existing delivery services such as Uber and Deliveroo. Even though the distribution of dark spirits through e-commerce platforms is met with obstacles such as logistics, regulations, and temperature control requirements, sales through e-commerce channels are anticipated to gain high traction. Hence, it provides growth opportunities for the various stakeholders in the coming years, even though the distribution of dark spirits through e-commerce platforms is met with obstacles such as logistics, regulations, and temperature control requirements.

Global Dark Spirits Market Restraints

Strict rules and restrictions set by each country's government impede market expansion

Alcoholic beverage advertising is a very regulated form of marketing. While regulatory bodies control the majority of the marketing for the alcohol business, a large number of nations have more stringent government regulations — or a complete ban known as a "black market" — than others. Russian and Sri Lankan black markets for alcoholic beverages exist, despite the bans on public alcohol advertising in Russia and Sri Lanka, respectively, both of which went into effect in 2013. Turkey banned all alcohol advertising a year later. The laws in other nations, particularly in Europe, are a little less clear. EU regulations only allow for advertising of non-alcoholic beers with an alcohol content of less than 2.25 percent; however, Swedish national legislation prohibits the promotion of any non-class 1 alcoholic beverage (beer with an alcohol content of less than 2.25 per cent). This issue is anticipated to limit the growth of the global market for dark spirits.

Segmentation of the Global Dark Spirits Market

The global market for dark spirits is divided into four parts based on type, distribution channel, application and region. Further, the market is divided into Whiskey, Rum and Brandy based on type. The demand for craft whiskies has surged due to a noticeable rise in consumers who wish to experiment with new flavours and tastes. Future growth in the sector is anticipated due to the high disposable income of developing countries like China and India and the rising whiskey consumption in Japan. Whiskey sales will increase over the anticipated time due to its excellent flavour and reduced fat content.

The segment for rum will grow at the fastest rate during the anticipated time frame. Rum's therapeutic quality is what is driving this market's expansion. Rum is used for several things, including lowering the risk of diabetes and alleviating muscular pain. These elements will likely cause the rum segment to expand throughout the projected period.

Based on the distribution channel, the market is bifurcated into Online and Offline. In terms of revenue, the offline commerce segment accounted for over 80.0% of the global market in 2021. Numerous suppliers, including liquor stores, eateries, bars, pubs, supermarkets, and specialized shops, are a part of offline trading. Dark spirits are frequently supplied in restaurants, bars, and pubs to provide consumers with enjoyable experiences. These spirits are also combined with interestingly flavoured juices and sparkling water. Domestic providers are offering a wide range of spirits at reduced prices, accelerating the segment's growth. The rise in drinking habits and the greater leaning toward western culture will fuel market expansion.

The market segment for online trading is anticipated to increase at the quickest rate over the forecasted period. This development can be attributed to the distributors' increased attention to implementing contemporary business technologies for door-step delivery. Additionally, to raise brand awareness among consumers, businesses and merchants run online promotional campaigns on various social media platforms.

According to the application, the market is divided into Restaurants, Bars, Pubs and Others.

The global market for dark spirits is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

Regional Analysis of the Global Dark Spirits Market

The global market for dark spirits is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa.

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Due to the growing demand for fruity, clean, and polished malt scotch whisky in China and Japan, Asia-Pacific provided the highest contribution to the worldwide dark spirits market, with a share of more than 30.0 per cent in 2021. The increasing popularity of spirits aged in bourbon and sherry casks among Indian consumers is expected to contribute to the expansion of the industry. The increasing consumption rate of rum and brandy goods in China is the primary factor driving China's market share. In addition, private companies in Japan supply the facilities necessary to create manufacturing units for alcoholic beverages. These facilities include the necessary infrastructure. These industrial facilities are contributing to an increase in the rate of consumption on the global market. It is anticipated that a larger import of whiskey and rum into the region will promote the expansion of the market.

During the forecast, it is anticipated that the CAGR in North America will be approximately 8.0 percent. It can be attributed to the preference that customers have for spirits that are based on agave. The robust performance of the dark spirits industry in the United States can be attributed to the fact that high-end and super-premium American whiskey brands are trendy and that big cognac brands have been developing. The use of distilled alcoholic beverages is becoming increasingly popular in the United States, driving the market expansion. It is also anticipated that the region will demonstrate the quickest growth rate during the forecast period due to the increasing consumption of Scotch, Irish, and Canadian whiskeys.

Key Players in the Global Dark Spirits Market

  • Suntory Holdings
  • Asahi Group Holdings
  • Kirin Holdings
  • Diageo
  • Anheuser-Busch InBev
  • Bacardi Limited
  • LT Group INC
  • The Brown–Forman Corporation
  • Rémy Cointreau and Pernod Ricard.

Recent Developments

  • In June 2022, Kirin Holdings, a significant producer of beverages in Japan, announced to sell back shares in the joint venture and transfer its ownership of Myanmar Brewery to it. The local partner, Myanma Economic Holdings Plc., will have complete control over the business.
  • In March 2022, Diageo India will pay Rs 31.5 crore for a minority share in gin producer Nao Spirits.
  • 1st April 2022, to increase distribution outside of Wisconsin and Iowa to include Minnesota, North Dakota, South Dakota, and Nebraska, Johnson Brothers negotiated a new contract with Rémy Cointreau USA.

Global Dark Spirits Market: Segmentation

By Type

  • Whiskey
  • Rum
  • Brandy

By Distribution Channel

  • Online
  • Offline

By Application

  • Restaurants
  • Bars
  • Pubs
  • Others

By Region

  • North America
  • Europe
  • Asia-Pacific
  • Latin America
  • The Middle East & Africa
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