Allied Market Research published a report titled”Global Bourbon Spirits Market by Type (Wheated, Barrel Finished, Barrel Select, and Others), by ABV (40-45%, 46-55%, and 56% and Above) and by Distribution Channel (On-trade and Off-trade), Global Opportunity Analysis and Industry Forecast, 2022-2031″. According to the report, the global bourbon spirits industry generated $7.8 billion in 2021 and is anticipated to generate $12.8 billion by 2031, witnessing a CAGR of 5.0% from 2022 to 2031.
Prime determinants of growth
A rise in consumer spending, rapid urbanization, product innovation, and a rise in demand from the millennial population drives the bourbon spirits market. However, stringent regulations over advertisements restrict market growth. On the other hand, the general shift in consumer consciousness and demand for innovative products has increased the desire for bourbon spirits distilled with organic malted barley and grains. This consumer demand can be regarded as an opportunity for the manufacturers to broaden their market base.
Report coverage & details:
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Report Coverage |
Details |
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Forecast Period |
2022–2031 |
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Base Year |
2021 |
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Market Size in 2021 |
$7.8 billion |
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Market Size in 2031 |
$12.8 billion |
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CAGR |
5.0 % |
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No. of Pages in Report |
297 |
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Segments Covered |
Type, ABV, and Distribution Channel |
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Drivers |
Rise in spirit tourism Wide utilization of spirits in premium cocktails The surge in demand for premium ready-to-drink and luxury spirits |
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Opportunities |
Exploring demand in the Asia-Pacific region Introduction of craft spirits |
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Restraints |
Stringent regulations over advertisement |
Covid-19 Scenario
- The COVID-19 pandemic impacted consumer spending negatively as the spending had declined across entire alcoholic beverage categories such as vodka, whiskey, and gin in 2020.
- The pandemic had increased volatility and uncertainty for alcohol manufacturing companies as liquor sales fell by 12% in 2020 due to the lockdown and consumer tendency to stay at home.
- Furthermore, the rise in transportation costs caused delays in product distribution across the globe.
The wheated bourbon spirits segment to maintain its leadership status throughout the forecast period
Based on type, the wheated bourbon spirits segment dominated the market in 2021, accounting for more than one-third of the market share and is expected to dominate the market during the forecast period, owing to its highest rate of consumption demand and maximum exports. The barrel-finished segment would also showcase the fastest CAGR of 6.1% during the forecast period due to the rise in the demand for triple-distilled and blended spirits among consumers.
The bourbon spirits with an ABV of 46-55% segment to maintain its leadership status throughout the forecast period
Based on ABV, the ABV of 46-55% bourbon spirits segment dominated the market in 2021 accounting for around two-fifths of the market share and is expected to dominate the market during the forecast period, as it refers to premium drinks that are available at the price above the nominal or usual price of the bourbons with specialty ingredients and blending the whiskey in a special manner during fermentation and aging. The 56% and above segment would also showcase the fastest CAGR of 10.3% during the forecast period, owing to the demand for a high-end premium or luxury bourbons to follow the trend of ‘drink less with high experience.
The on-trade segment to maintain its lead position during the forecast period
Based on the distribution channel, the on-trade segment dominated the market in 2021, accounting for around three-fifths of the market share and is expected to maintain its dominance during the forecast period. The same segment would also showcase the fastest CAGR of 5.1% during the forecast period, owing to a rise in consumers’ preferences toward socialization.
North America garnered the major share in 2021-
By region, North America garnered the highest share in 2021, holding more than one-third of the global endpoint security market revenue in 2021, and is projected to retain its dominance by 2031. The LAMEA region would also portray the fastest CAGR of 6.0% during the forecast period due to increasing consumer demand for bourbon whisky.
Leading Market Players:
- Brown-Forman Corporation
- Suntory Holdings Limited
- Conecuh Brands, LLC
- Distiller’s Way, LLC
- Laws Whiskey House
- MGP Ingredients, Inc.
- Bardstown Bourbon Company
- Wyoming Whiskey, Inc.
- Jos. A. Magnus & Co.
- Kirin Holdings Company, Limited
- Bacardi Limited.
- Nashville Barrel Company
- Heaven Hill Brands
- Michters Distillery LLC.
- Sazerac Company, Inc
