Market Insights Consumer Alcoholic Drinks

Spirits - Europe

Europe

Revenue, at home (e.g., revenue generated in supermarkets and convenience stores) in the Spirits market amounts to US$58.4bn in 2024.
Revenue, out-of-home (e.g., revenue generated in restaurants and bars) amounts to US$30.1bn in 2024.
Revenue, combined amounts to US$88.4bn in 2024.
The revenue, at home is expected to grow annually by 1.27% (CAGR 2024-2029).
In global comparison, most revenue, at home is generated in China (US$146,400m in 2024).
In relation to total population figures, the average revenue per capita, at home of US$69.15 are generated in 2024.
In the Spirits market, volume, at home is expected to amount to 3,274.0m L by 2024.
Volume, out-of-home is expected to amount to 379.7m L in 2024.
Volume, combined is expected to amount to 3,654.0m L in 2024.
The Spirits market is expected to show a volume growth, at home of -2.8% in 2025.
The average volume per person, at home in the Spirits market is expected to amount to 3.88L in 2024.

Key regions: United States, United Kingdom, Worldwide, United Kingdom, Australia

Definition:

The Spirits market includes alcoholic beverages that have been produced through the distillation of wine, fermented fruits, or grains. Due to the distillation process, the alcohol content of spirits is much higher than that of most wines and beers, typically ranging from 20% to 50% alcohol by volume (ABV).

Structure:

The Spirits market is divided into 8 markets:

The Whisky market encompasses spirits on a grain basis that have been aged in wooden casks for a duration of at least three years.
The Vodka market encompasses spirits based on grain and/or potatoes.
The Rum market encompasses spirits based on sugar cane.
The Gin market encompasses spirits based on juniper berries.
The Brandy market encompasses spirits based on fermented fruit juice.
The Tequila market encompasses spirits made primarily from the blue agave plant (Agave tequilana) in Mexico.
The Soju market encompasses the Korean distilled beverage, Soju, which is traditionally made from rice, barley, or sweet potatoes.
The Liqueurs & Other Spirits market encompasses all other spirits not previously mentioned as well as Ready-to-Drink (RTD) cocktails.

Additional information:

The market comprises revenue and average revenue per capita, volume and average volume per capita, price per liter, as well as sales channels. Per capita figures refer to a country’s or region’s whole population.

At-home market data covers retail sales via super- and hypermarkets, eCommerce, convenience stores, and similar sales channels. Out-of-home market data includes all sales in hotels and restaurants, sales by catering companies, as well as sales in cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. All prices are valued at retail selling prices, including all sales and consumption taxes.

Key players include Diageo (e.g., Johnnie Walker, Smirnoff, and Tanqueray), Pernod Ricard, and Kweichow Moutai.

Market

Region

Region comparison

Currency

Analyst Opinion

The Spirits market in Europe has been experiencing significant growth in recent years, driven by changing customer preferences, emerging trends, and local special circumstances.

Customer preferences: In Europe, consumers have shown a growing preference for premium and craft spirits. They are increasingly seeking unique and high-quality products, and are willing to pay a premium for them. This shift in preferences has led to an increase in the demand for artisanal spirits, as well as spirits with unique flavors and ingredients. Additionally, consumers are becoming more health-conscious and are seeking spirits that are lower in sugar and calories. As a result, there has been a rise in the popularity of low-alcohol and no-alcohol spirits in the European market.

Trends in the market: One of the key trends in the European Spirits market is the rise of gin. Gin has seen a resurgence in popularity in recent years, with consumers embracing its versatility and botanical flavors. Craft gin distilleries have emerged across Europe, offering a wide range of unique and artisanal gin products. Another trend in the market is the growing popularity of whisky, particularly Scotch whisky. European consumers have developed a taste for the rich and complex flavors of Scotch whisky, driving its demand in the market.

Local special circumstances: Each country in Europe has its own unique set of circumstances that contribute to the development of the Spirits market. For example, in countries like France and Italy, where wine has traditionally been the preferred alcoholic beverage, there has been a shift towards spirits. This can be attributed to changing consumer preferences and the rise of cocktail culture. Additionally, countries like Ireland and Scotland have a strong tradition of whisky production, which has helped to drive the growth of the Spirits market in these regions.

Underlying macroeconomic factors: Several macroeconomic factors have contributed to the growth of the Spirits market in Europe. Economic growth and rising disposable incomes have increased consumer spending power, allowing individuals to indulge in premium spirits. Additionally, the growth of the tourism industry in Europe has also played a role in driving the demand for spirits. Tourists visiting Europe often seek out local spirits as souvenirs or to experience the unique flavors of the region. In conclusion, the Spirits market in Europe is experiencing growth due to changing customer preferences, emerging trends, and local special circumstances. Consumers are increasingly seeking premium and craft spirits, with a focus on unique flavors and ingredients. The rise of gin and whisky, as well as the popularity of low-alcohol and no-alcohol spirits, are key trends in the market. Each country in Europe has its own unique circumstances that contribute to the development of the Spirits market. Factors such as economic growth, rising disposable incomes, and the growth of the tourism industry have also played a role in driving the demand for spirits in Europe.

Methodology

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.