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Vodka sales to hit $40.25bn by 2030
The global vodka market is estimated to be worth US$40.25 billion by 2030, with a projected compound annual growth rate (CAGR) of 5.6% for the forecast period.
The global vodka market is currently valued at US$25.95bn, according to a report by Research and Markets.
The category’s recent growth has been accredited to ‘a huge increase in new product development’ in the vodka-based ready-to-drink (RTD) category, including pre-mixed cocktails, spirits, and hard seltzers, which is expected to continue driving the market forward.
In June, 70% of American consumers were found to be more likely to opt for a vodka-based RTD beverage over any other spirit.
Unlike beer and wine, vodka consumption at restaurants and bars has been growing, and is expected to continue outpacing on-premise consumption.
Furthermore, the on-trade segment held a significant market share of more than 67% in 2022.
The growth of the segment can be attributed to the ‘growing number of pubs and expanding hospitality industry’.
According to IWSR Drinks Market Analysis, total vodka US on-premise sales increased by 5.9% in 2019.
Generational influence
Millennials, who are said to account for a ‘significant percentage’ of alcohol drinkers, have also been credited to the category’s growth, as the generation exhibits ‘significant purchasing power’ and represents a major demographic for the alcoholic beverages market.
As a result, they appear to be the ‘most powerful buyers’ of various food and drink items, including vodka.
The flavoured segment is anticipated to witness the fastest growth rate during the forecast period owing to the growing demand for high-end flavoured vodka, especially among the millennial population.
However, the non-flavoured vodka segment held the largest share of over 65% in 2022.
The report has attributed this segment’s growth to the increase consumers’ health consciousness, and the encouragement of the consumption of alcohol made with natural ingredients.
Geographic growth
Asia Pacific is expected to register a significant CAGR of 6.1% during the forecast period.
It is said to be one of the leading markets for vodka, owing to increased spending from people on better quality beverages in the region.
In China, there has been a ‘well-documented shift’ to buying alcohol online since the start of the pandemic, according to a study published by IWSR.
The data shows that from 2019-2020, the value of China’s alcohol e-commerce sector grew by approximately 20%.
The increased penetration of online sales of alcohol in China is subsequently driving the growth of the vodka market.
In Europe, vodka is expected to register a significant CAGR of 5.8% during the forecast period, due to the rising demand for premium bottlings and the growing cocktail culture, both of which are said to be key drivers for the growth of the market in the region.