Bourbon could be worth $12.8bn by 2031
The global Bourbon category is predicted to grow by 5% between 2022 and 2031, according to new research.
Allied Market Research’s has released its latest 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.
The key players included in the report include Brown-Forman, Beam Suntory, Bacardi, Heaven Hills and Sazerac, plus more.
The Bourbon market was found to be worth US$7.8 billion in 2021, and is estimated to rise by value to US$12.8bn by 2031, after increasing by a compound annual growth rate (CAGR) of 5%.
The main drivers of the growth are considered to be a rise in spirits tourism, wide utilisation of spirits in premium cocktails, and a surge in demand for premium ready-to-drink (RTD) products and luxury spirits.
While the wheated Bourbon spirits segment was found to dominate the market in 2021, accounting for more than a third of its share, it is also expected to front the marketing during the forecast period of 2022-2031.
The barrel-finished segment is expected to witness the fastest CAGR growth of 6.1% during the period, due to the rise in the demand for triple-distilled and blended spirits among consumers.
When looking at alcohol strength, the research company found Bourbons on the higher end of the ABV scale, resting between 46%-55% ABV, claimed two-fifths of the market share and are also expected to dominate int he forecast period.
The 56% ABV-and-above segment is also projected to see the fastest CAGR growth of 10.3% during the forecast period, owing to the increase in demand for high-end premium or luxury Bourbons as consumers choose quality liquids.
On-trade to dominate the market
When reviewing the distribution channel, the on-trade segment was seen to dominate the market in 2021, claiming three-fifths of its share. It is expected to maintain its dominance during the forecast period, and showcase a CAGR of 5.1% between 2022-2031, owing to a rise in socialising.
By region, North America garnered the highest share in the Bourbon market in 2021, holding more than one-third of the global revenue in 2021, and is projected to keep hold of its dominance by 2031.
The Latin America, Middle East and Africa (LAMEA) region is expected to also portray the fastest CAGR of 6% during the forecast period.
The vodka seltzer market was recently predicted to reach US$2bn by 2031.