LONDON--(BUSINESS WIRE)--According to the latest research study released by Technavio, the global specialty spirits market is expected to surpass 35 billion liters in production by 2020.
This research report titled ‘Global Specialty Spirits Market 2016-2020’, provides an in-depth analysis of market growth in terms of revenue and emerging market trends. This market research report also includes up to date analysis and forecasts for various market segments, including baijiu, shochu and soju, and Cachaça.
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“Vendors continually launch newer flavors and varieties to cater to consumer demand and thereby boost sales. HiteJinro's strong focus on product innovation provides it with a competitive advantage. On September 20, 2015, the company launched premium soju and wine gift sets for the Chuseok holiday. Ilpoom Jinro soju is a 10-year-old soju aged in oak and refined from pure rice. The gift set comprises two 375 ml bottles of Ilpoom Jinro soju and a pair of shot glasses and pair of cocktail glasses,” said Vijay Sarathi, one of Technavio’s lead analysts for alcoholic beverages.
“The overall sales of wines and spirits, including specialty spirits, was valued at close to USD 10.25 billion in 2015. Alcohol is the second-largest segment in travel retail and is likely to grow at a CAGR of more than 7% in terms of revenue during the forecast period. Growing international travel coupled with rising disposable incomes drives travel retail sales of alcohol,” added Vijay.
Product segmentation of global specialty spirits market 2015
|
• Baijiu |
83.13% | |||
|
• Shochu and soju |
9.54% | |||
|
• Cachaça |
7.01% | |||
|
• Others |
0.33% |
Baijiu: largest segment of the specialty spirits market
Baijiu is the traditional alcoholic beverage of China, which is distilled from grains. Its alcohol content usually ranges between 40% and 60%.
Baijiu is the most consumed specialty spirit and is driving the overall growth of the specialty spirits market globally. China is the largest market for baijiu. In China, people drink baijiu with their family during special occasions and celebrations. It is generally served warm or at room temperature with meals in China. The various types of baijiu are classified based on their aroma, namely, light, heavy, honey, layered, light, rice, and sauce.
Manufacturers are expanding their geographical reach by exporting baijiu to the American and European markets. In Portland, baijiu is produced at Vinn Distillery in small amounts under the artisanal product category. In the US and Europe, many restaurants serve baijiu with Chinese cuisine. However, after the Chinese government imposed strict regulations regarding gifting of luxury products in 2013, the premium segment of baijiu fell sharply in China. In China, baijiu is mostly consumed with meals at home. However, consumers in the country prefer imported spirits when they eat outside. The baijiu market therefore faces stiff competition from foreign spirts not only globally but also at home. Some popular brands of baijiu are WU LIANG YE (ABV 52%), Jian Nan Chun (ABV 52%), and Mianzhu Daqu (ABV 52%).
Shochu and soju: second largest segment of the specialty spirits market
Shochu is a traditional Japanese drink made from rice, barley, sweet potatoes, or brown sugar. Its alcohol content varies from 10%-45%. Some of the popular brands are Gokoo (ABV 25%), Jinkoo (ABV 25%), and Amami Kokuto Shochu (ABV 25%).
Soju is South Korean in origin, and it is prepared from rice, wheat, or barley. It is also made from potatoes, sweet potatoes, or tapioca. The alcohol content may vary from 16%-45%. Some recent launches have an alcohol content less than 14%. Some popular brands are Alakey (ABV 24%), Jinro 24 (ABV 24%), and Jinro Chamisul Classic (ABV 20.1%)
Soju is one of the most popular drinks in the world. The brand Jinro reported the highest sales (639 million liters) in 2014 — the highest among all spirits. It is sold in more than 80 countries, including the US, Germany, the UK, and Japan. The drink is very popular in restaurants, pubs, and bars. Jinro has signed the popular South Korean popstar PSY to promote this drink globally. Manufacturers have also launched new variants with low-alcohol content and numerous flavors such as citron, blueberry, pomegranate, and grapefruit. Fruit-flavored soju is becoming popular among women. The market for shochu and soju is rising globally and is anticipated to grow at a CAGR of 5.48% during the forecast period.
Cachaça: third largest segment of the specialty spirits market
Cachaça is the traditional and official drink of Brazil. Almost 98% of consumption is domestic. However, the spirit is experiencing a considerable threat from imported spirits, beers, and wines, and the market is declining. Some manufacturers, like Leblon, have plans to include a premium segment of cachaça in a bid to expand the drink's consumer base. Manufacturers are expanding their global reach by exporting cachaça to Europe. The spirit is gaining popularity in the cocktail menus of many European bars. Some of the major international markets for cachaça are Germany, Portugal, Paraguay, Uruguay, the US, and France. Leblon also launched a USD 3 million advertising campaign in 2013, whereby the company advertised its brand on billboards, taxi tops, subway and street posters, and aerial banners in Miami, Florida, and New York City, New York, US. Vendors also engage in awareness programs to educate bartenders and consumers about the difference between artisanal cachaça and the industrially produced varieties.
Browse related reports:
- Global Alcoholic Drinks Market 2016-2020
- Global Alcohol Ingredients Market 2016-2020
- Alcoholic Beverage Market in the US 2016-2020
- Global Fermentation Chemicals Market 2015-2019
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