Luxury wine and spirits category to grow with a CAGR of 4.9% by 2027
The global luxury wine and spirits category is set to register a CAGR of 4.9% from 2020 to 2027, according to a new report.
The data, collated by Allied Market Research, shows how the luxury wine and spirits sectors combined generated US$970 billion in 2019, and are estimated to reach US$1,411 billion by 2027.
The research also reflected how this growth was going to be achieved and outlined that the trend for premium quality luxury goods, an increase in consumer disposable income and the surge in urbanisation were all contributing to a surge in the sector.
The data also highlighted, however, how strict government regulations have hindered market growth and held it back. However, it explained, despite this, the growth in the popularity of alcoholic beverages along with aggressive marketing strategies were set to help create new opportunities arising in the coming years.
According to the report: “Restrictions on the operational activities and disruptions in supply chain have hampered the overall sale in the alcoholic beverages industry considerably during Covid-19 outbreak”.
Additionally, the findings detailed how “restrictions on import and export activities have created a huge supply-demand gap and have impacted the revenue generated from retail stores. Moreover, restaurants and bars have been closed due to the lockdown”.
“Based on type, the sprits segment contributed to the largest share in 2019, accounting for more than three-fifths of the total share, and is estimated to maintain its dominant position during the forecast period. However, the wines/Champagne segment is expected to register the highest CAGR of 5.0% from 2020 to 2027,” the report stated.
According to Allied Market Research, based on distribution channel, the retail segment accounted for the largest share in 2019, holding more than two-fifths of the total share, and is expected to maintain the largest share throughout the forecast period. However, the e-commerce segment is estimated to portray the highest CAGR of 5.1% during the forecast period.
The report also outlined how, based on region, Europe contributed the highest share, accounting for more than two-fifths of the total market share in 2019, and will maintain its dominance throughout the forecast period. However, North America is expected to grow at the highest CAGR of 5.9% from 2020 to 2027.
Leading market players analysed in the research include: Pernod Ricard, Bacardi, Brown-Forman, Diageo, Davide Campari-Milano S.p.A., Thai Beverage Public Company Limited, Suntory Holdings Limited, Hitejinro Co. Ltd, LVMH and Edrington.