Premium alcohol to be worth $1.7tn by 2032
The premium alcohol market is projected to grow to a value of US$1.7 trillion by 2032.
In Future Market Insights’ report Premium Alcoholic Beverages Market Outlook (2022-2032), the category is expected to grow at a compound annual growth rate (CAGR) of 9.3% by 2032.
The market researcher valued the premium alcohol market as currently worth US$700 billion (US$0.7tn), and the global demand for premium alcoholic drinks is projected to grow at a year-on-year rate of 8.7% in 2022.
Between 2017 to 2021, premium alcohol grew at a CAGR of 8.2%.
The projection of a 9.3% CAGR rise between 2022 to 2031 takes into account rising disposable income and rising popularity of premium alcohol among younger drinkers.
Currently, North America claims the largest share of the premium alcohol market, with Europe coming in a close second.
This is followed by the Latin America, East Asia, South Asia and Oceania regions. The Middle East and Africa (MEA) accounts for the smallest hold of the market.
The report states that US consumers have moved towards more premium alcoholic beverages during the last two decades ‘more than any other country’.
Plus, Germany is pegged as a ‘lucrative’ premium alcoholic beverages market, with cream liqueur trending in the country.
Meanwhile, premium whiskies as a whole are noted to be gaining momentum, and even expected to outpace other premium beverages between 2022-2032.
Data recently released from from CGA by Nielsen IQ showed the current successes of the rum category. With sales of rum surpassing £1bn (US$1.2bn) in the UK, the category now accounts for a bigger market share than whisky.