Do you own or work in a spirits drinks company? Find out about the key trends for this market and start implementing them in your business now.
In this article, we’ll explore the key trends in the global luxury spirits drinks market so you can start applying them in your business today.
- Market Overview
- Handcrafted spirit drinks
- Super-premium products
- Sustainable packaging
- Appeal to nostalgia
1. Market Overview
The luxury wine market and spirits drinks size is estimated to reach US $123.4 billion by 2027, and could grow at a CAGR (compound annual growth rate) of 5.1% during the forecast period 2022-2027. Wines and spirits fall into the category of alcoholic beverages, differing only in their alcohol content: wine generally has less than 15%, while spirits drinks have more than 30% alcohol. Some common spirits drinks include tequila, whisky, cognac, rum, among others.
Rare and vintage wines and spirits drinks have seen an increase in demand due to the perception of their greater value and exclusivity. The desire for a distinctive and personalized experience is one of the reasons for the increased interest in this type of product. Consumers are looking for products that have a unique taste and narrative, as well as products that give them a sense of exclusivity and luxury.
The growing Western influence among younger generations in developing countries, as Europe accounted for 35% of the market by 2021, is one of the many factors set to drive the growth of the luxury wine industry in the period 2022-2027.
2. Handcrafted spirit drinks
As with the beer market, craft distillers are playing a key role in the industry at large, as more and more consumers are looking for customized, high-quality drinks with new, interesting and organic ingredients.
In the United States of America, in 2018, the number of craft distilleries increased by around 15% and over the next four years, a CAGR, i.e. compound annual growth rate, of more than 18% is expected.
3. Super-premium products
As with handcrafted spirit drinks and the evolution towards more sophisticated products, there is a growing trend in the luxury or super-premium market, as many consumers prefer and invest in these types of products, rather than low-end drinks.
According to John Barrett, commercial director of Pernod Ricard USA, premiumisation is more than a trend, but rather a cultural shift that will grow and evolve in the coming years.
Between 2014 and 2018, luxury spirits drinks grew at a CAGR of 7%, compared to the overall spirits market, which grew by 2%.
4. Sustainable packaging
Because they generate less waste and are more eco-friendly, sustainable packaging is and will continue to be a key product feature to generate sales and consumer loyalty to your brand.
According to the managing director of creative agency Thirst US, Adam Spriggs, value-driven purchasing, including sustainability, is currently moving from an expected hygiene factor to a “nice-to-have” factor, but in the future it will become a determining buying feature and an asset for brands that develop this trend correctly.
In this way, cork is becoming an increasingly used element in the packaging of spirit drinks, especially in capsulated stoppers, as it is a 100% sustainable, unique and highly differentiating material, offering elegance and refinement to the product and convenience to the consumer.
5. Appeal to nostalgia
Nostalgia has been a recurring theme in spirits drinks marketing. Therefore, allowing consumers to relive their childhood is a powerful purchase trigger that can be unlocked through aesthetic symbolism, creating “experiential time capsules”, digitally and/or in real life, and partnering with celebrities and icons of those eras.
The premium spirits drinks market represents a good business opportunity and has great potential yet to be explored. Amongst the various trends predicted for the coming years, from the growth of artisanal distilleries to growing concern over sustainability and valuing a unique consumer experience, cork plays a fundamental role in increasing the added value of the product by giving it luxury, elegance and sustainability.
Do you intend to bet on a differentiating packaging for your products, through the use of high quality cork stoppers? Get in touch with us!