Dark Spirits Market

Global Dark Spirits Market Size (2024 to 2029)

dark spirits market was worth US$ 100.33 billion in 2024 to US$ 134.26 billion by 2029, with a CAGR of 6% between 2024 and 2029.

Dark spirits are distilled liquors that darken in appearance after being aged in sealed barrels for a period. Rum, brandy, cognac, bourbon, and scotch whiskey, as well as wine, are some of the most widely accessible dark spirits. Sugarcane molasses, barley, corn, wheat, and grapes are fermented in distilleries to make them. To enhance the taste and colour, the spirits are stored in reconditioned barrels with burned interiors. Congeners are also added to dark spirits to aid in the fermentation process. They're used to make liquor chocolates, candies, sauces, and marinades, among other things. The moderate use of black spirits can help with pain relief, bone mineral density, preventing the common cold and peripheral artery disease, and keeping body temperatures warm.

The premium product market benefits from expanding disposable income, urbanization, and the growing middle-class population. With an increasing number of pubs, bars, and brewers providing alcoholic beverages, premium spirits are driving the dark spirits market growth in both developed and developing nations.

Global Dark Spirits Market Drivers:

One of the primary aspects driving the market's favourable outlook is significant growth in the food and beverage industry around the world. Furthermore, the rising popularity of premium craft spirits, particularly among millennials, is propelling the market forward.

Dark spirits are commonly provided in restaurants, hotels, bars, and pubs, and are frequently blended with exotic-flavoured juices and sparkling water to give consumers novel experiences. Furthermore, the introduction of internet alcohol delivery services is a growth-inducing element. To raise brand awareness among consumers, brands and merchants are participating in online promotional efforts using social media platforms. To fulfil the needs of health-conscious consumers, product makers are launching clean-label dark spirits made with organic, GMO-free, additive-free, and naturally produced components. Other factors, such as significant growth in the spirit tourism business, as well as expanding consumer spending power, are expected to propel the market for dark spirits forward.

Dark spirits made in large quantities are very common in emerging Asia-Pacific countries like India. The premium market, on the other hand, has seen an increase in demand over the last five years. In addition, prospective customers are acquiring a taste for high-end products that provide a distinctive and authentic experience. Furthermore, rising disposable income, urbanization, and the growing middle-class population all have a beneficial impact on the premium product market. Premium spirits are driving the dark spirits market growth in both established and developing economies, with an increasing number of pubs, bars, and brewers selling alcoholic beverages.

Global Dark Spirits Market Restraints:

Advertising for alcoholic beverages is a highly controlled kind of marketing. While regulatory organizations oversee most of the alcohol industry's marketing, a vast number of countries suffer stricter government restrictions – or a complete ban referred to as a dark market – than others. Dark markets exist in Sri Lanka, where public alcohol advertising was banned in 2006, and Russia, where alcohol promotion across numerous channels was banned in 2013. A year later, Turkey outlawed all alcohol advertising. Other countries' rules, notably in Europe, are a little more ambiguous. Sweden's national law prohibits advertisements for any alcohol that is not classified as 'class 1' (beer with an alcohol content of less than 2.25 per cent), however, this is in direct conflict with EU legislation, which only recommends that adverts for a beer with an alcohol content of less than 2.25 per cent. This factor is expected to impede the market growth of the global dark spirit market.

REPORT COVERAGE: 

This research report on the Global Dark Spirits Market has been segmented and sub-segmented based on type, application, function & region. 

Global Dark Spirits Market - By Type:

• Whiskey
• Rum
• Brandy

The global market for dark spirits is divided into three types: Whiskey, Rum, and Brandy. Whiskey has the largest market share. There has been a considerable growth in the number of consumers who want to explore different flavours and tastes, which has increased the demand for craft whiskies. The high disposable income of developing nations like China and India, as well as the expanding consumption of whiskey in Japan, are expected to propel the industry forward in the future years. Throughout the predicted period, whiskey sales will be boosted by its great taste and lower fat content.

During the predicted period, the rum segment will increase at the fastest rate. The medicinal characteristic of rum is responsible for the segment's growth. Rum is utilised for a variety of purposes, including decreasing diabetes risk and relieving muscle discomfort. As a result of these factors, the rum segment is expected to grow throughout the forecast period.

Global Dark Spirits Market - By Distribution Channel:

• On Trade
• Off Trade

The global market for dark spirits is examined in terms of on-trade and off-trade distribution channels. In the global market, the off-trade category has the largest market share. Liquor stores, restaurants, bars, taverns, supermarkets, and speciality stores are among the offline trading suppliers. Most restaurants, taverns, and pubs provide dark spirits, which are often mixed with unusually flavoured juices and sparkling water to provide clients with pleasurable experiences.. The market will develop because of a greater predisposition toward western culture and the rising adoption of drinking habits.

During the projected period, the on-trade segment is expected to increase at the fastest rate. Online grocery and delivery services have exploded in popularity. The continuing pandemic has boosted the emergence of such platforms. As a result, industry stakeholders have teamed up with established delivery services like Uber and Deliveroo. Though the distribution of dark spirits via e-commerce platforms faces challenges such as logistics, regulations, and temperature control requirements, sales via e-commerce channels are expected to gain traction in the coming years, thanks to advancements in logistics, easing of regulations, and increased digital connectivity.

Dark Spirits Market - By Region: 

• Asia Pacific

Due to the rising demand for fruity, clean, and polished malt scotch whisky in China and Japan, Asia Pacific accounted for more than 30.0 per cent of the worldwide dark spirits market in 2021. The increased popularity of bourbon and sherry cask spirits among Indian customers would aid industry expansion. The rising consumption rate of rum and brandy goods is driving China's market share. Furthermore, private Japanese corporations provide infrastructural conditions for the construction of alcoholic beverage manufacturing units. These production units are increasing the global market's consumption rate. Increased whiskey and rum imports in the region are likely to promote market growth of dark spirits.

• North America

From 2022 to 2027, North America is expected to grow at an annual rate of 8.0 per cent. This can be attributed to customers' preference for agave-based alcohol. The popularity of high-end and super-premium US whiskey brands, as well as the creation of big cognac brands, are credited with the dark spirit market's strong success in the United States. The industry is growing due to a growing trend in the United States to consume distilled alcoholic beverages. The region's increasing acceptance of Scotch, Irish, and Canadian whiskeys is expected to expand at the quickest rate during the projected period.

• Latin America
• The Middle East and Africa
• Europe

KEY MARKET PLAYERS:

Key Market Players of  Dark Spirits Market are Diageo, Anheuser-Busch InBev, Suntory Holdings, Pernod Ricard, Asahi Group Holdings, Kirin Holdings, Bacardi Limited, LT Group, INC, The Brown-Forman Corporation, Rémy Cointreau.

RECENT HAPPENINGS IN THE MARKET:

Under the expert guidance of master distiller Piet van Leijenhorst from Bols, Kyndal Group launched its rum brand Bootz in the Indian market at the end of 2019.