Wine and Spirits Market to Grow by USD 193.2 Billion from 2024-2028, Driven by Rising Craft Drink Demand, with AI Driving Market Transformation - Technavio

NEW YORK, Feb. 10, 2025 /PRNewswire/ -- Report with the AI impact on market trends - The global wine and spirits market size is estimated to grow by USD 193.2 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of  3.2%  during the forecast period. Increased demand for craft drinks is driving market growth, with a trend towards increasing dependence on technology throughout value chain. However, campaigns against alcohol consumption  poses a challenge. Key market players include Anheuser Busch InBev SA NV, Bacardi Ltd., Bayadera Group, Brown Forman Corp., Campari Group, Constellation Brands Inc., Diageo Plc, E. And J. Gallo Winery, Hite Jinro Co. Ltd., LVMH Group., Meininger Verlag GmbH, Miguel Torres SA, Pernod Ricard SA, Som Distilleries and Breweries Ltd., Sula Vineyards Ltd., Suntory Holdings Ltd., Thai Beverage Public Co. Ltd., The Wine Group LLC, and Treasury Wine Estates Ltd..

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Market Driver

The wine and spirits market is experiencing notable trends that cater to evolving consumer preferences. Aging and alcohol level are key factors influencing the production of authentic, high-quality alcoholic beverages. Almond and antioxidant content are gaining popularity, as consumers seek health-conscious choices. Authenticity and transparency are essential, with provenance and quality driving product positioning. Craftsmanship and culinary experiences are essential for premium wines, including grape varietals like Champagnes and red wine. Brandy, liqueurs, and fortified wine add diversity to the spirit categories. Modernization in distillation processes, using natural fermentation and eco-friendly practices, is essential. Branding and sustainability are crucial for success. Consumers value e-commerce channels and subscription services, ensuring access to diverse offerings. Cultural significance, from festivities to social events, continues to fuel demand for spirits like Rum and spirits in general. Distillers focus on environmental conscience and minimizing environmental impact, using natural fertilizers instead of synthetic ones. Alcoholic beverages offer unique flavors and scents, making them ideal for various occasions. Premiumization tendency and good product positioning attract consumers with purchasing power. Overall, the wine and spirits market continues to evolve, catering to diverse tastes and preferences. 

In the Wine and Spirits Market, technological advancements are revolutionizing the way alcoholic beverages are consumed. Personalized drink-making apps, such as Distiller, Speakeasy Cocktails, Liquor Cabinet, Cocktail Flow, onthebar inc, and MiniBar, enable users to create customized drinks and monitor their composition. Additionally, apps like Drizly, MiniBar Delivery, Saucey, Drinkfly, and Klink Delivery offer doorstep delivery of alcoholic beverages. These innovations aim to enhance the drinking experience and increase consumption. Infusion machines and home-brewing machines are other technological developments in this sector. These tools and apps provide convenience and personalization, making the Wine and Spirits Market more accessible and engaging for consumers. 

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 Market Challenges

• The Wine and Spirits market faces several challenges in today's business landscape. One significant challenge is ensuring authenticity and transparency in the aging process of alcoholic beverages, including wines and spirits. Proper aging requires careful attention to alcohol level, temperature, and storage conditions. Another challenge is the increasing demand for health-conscious choices, with consumers seeking out low-alcohol and antioxidant-rich options. Craftsmanship and provenance are also crucial factors in the market, with consumers looking for unique, artisanal products. Brandy, Champagnes, and Fortified wines hold cultural significance and are often associated with social events and festivities. Distillers must balance modernization with traditional distillation methods to meet consumer preferences. Environmental conscience is becoming increasingly important, with a focus on reducing environmental impact through sustainable practices and reducing the use of synthetic fertilizers. E-commerce channels offer opportunities for reaching a wider audience, but product positioning and good branding are essential to stand out. Spirits categories, such as Rum, Whiskey, and Liqueurs, offer diverse flavors and scents, while premium wines and premiumization tendencies continue to drive growth. Subscription services provide a convenient way for consumers to explore new products and culinary experiences. Ultimately, the market requires a balance between tradition and innovation, sustainability, and consumer preferences.
• The wine and spirits market faces a significant challenge due to increasing campaigns against alcohol consumption. These campaigns, led by regulatory and social organizations, aim to educate the public about the negative health effects of alcohol. For instance, the Pan-American Health Organization (PAHO) launched the "Live Better, Drink Less" campaign in November 2021. This campaign highlights the risks of alcohol consumption, including liver diseases, cancer, cardiovascular problems, and tuberculosis. The growing incidence of alcohol abuse and related accidents, particularly among the younger population, has intensified these efforts. Governments and health organizations continue to prioritize awareness and education to mitigate the negative impact on the wine and spirits market.

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Segment Overview

This wine and spirits market report extensively covers market segmentation by  

• Distribution Channel
• Off-trade
• On-trade
• Type
• Spirits
• Wine
• Geography
• Europe
• APAC
• North America
• South America
• Middle East And Africa

1.1 Off-trade-  The off-trade wine and spirits market, which includes supermarkets, hypermarkets, and other retail formats like online sales, is experiencing growth due to the convenience and wide range of options it offers consumers. Supermarkets and hypermarkets, such as Aldi, Tesco, Carrefour, and Target, maintain large inventories of various wine and spirits brands. The increasing number of vodka manufacturers selling their products through these channels, coupled with the rise in Internet penetration and online sales, is driving market growth. Online retailing, popular among millennials, provides benefits like convenience and a diverse selection of vodka products. E-commerce platforms offer personalized shopping assistance, comparisons, and consumer feedback, enabling informed buying decisions. Online distribution eliminates the need for physical stores, reducing costs and allowing vendors to offer discounts directly to consumers. Despite the dominance of on-trade channels, the off-trade segment is predicted to witness significant growth due to competitive pricing and quick delivery services.

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Research Analysis

The wine and spirits market encompasses a vast array of alcoholic beverages, including wines, champagnes, spirits such as rum, whiskey, vodka, gin, and liqueurs. The production of these beverages involves intricate processes like fermentation, where yeast converts sugar into alcohol, and distillation, which separates the alcohol from other components. Wines and spirits vary in alcohol levels and antioxidant content, with some studies suggesting a link between moderate consumption and heart health benefits. Flavors like vanilla, almond, and others contribute to the unique tastes of these beverages. Traditional cocktails, like the Old Fashioned, showcase the versatility of spirits. Modernization and changing lifestyles have led to the rise of premium wines and champagnes, emphasizing terroir and tradition. Good branding and product positioning play crucial roles in consumer preference, with spirits like rum, whiskey, vodka, gin, and liqueurs each carving out their distinct niches in the market. Alcoholic beverages continue to evolve, offering consumers a diverse range of tastes and experiences.

Market Research Overview

The Wine and Spirits market encompasses a vast array of alcoholic beverages, including wines, champagnes, brandy, liqueurs, rum, and distilled spirits. The production process involves fermentation of grape varietals or distillation of distilled fluids, resulting in unique flavors and scents. Aging plays a crucial role in enhancing the authenticity and transparency of these beverages, with factors such as alcohol level and antioxidant content affecting the final product. Craftsmanship and cultural significance are essential elements of the industry, with modernization and sustainability driving innovation. Consumers seek culinary experiences and premium choices, driven by health-conscious trends and the desire for provenance and quality. E-commerce channels and subscription services offer convenience, while environmental conscience and impact are increasingly important considerations. Festivities and social events provide opportunities to showcase these beverages, with fortified wines and liqueurs adding depth and complexity to cocktails like the Old Fashioned. Spirit categories, such as rum and brandy, offer diverse flavor profiles and cultural significance. The industry continues to evolve, with product positioning and good branding key to capturing purchasing power. However, health complications, such as heart disease and liver tissue damage, remain concerns, leading to a focus on health-conscious choices and reducing the use of synthetic fertilizers.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Distribution Channel
• Off-trade
• On-trade
• Type
• Spirits
• Wine
• Geography
• Europe
• APAC
• North America
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

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SOURCE Technavio