Luxury Wines and Spirits Market

Luxury Wines and Spirits Market Size(2024 to 2029)

Luxury Wines and Spirits Market is expected at USD 1232.11 billion in 2024 and is anticipated to extent an over of USD 1565.05 billion by 2029 the end of the assessment period. The Luxury Wines and Spirits Market is estimated to experience reasonable growth to record a CAGR of 4.9% throughout the estimate period (2024 - 2029).

Luxury wines and spirits are alcoholic beverages with a blood alcohol level (ABV) that ranges from 3 to 40%. The drinks that are currently on the market are wines and distilled spirits, which are generally of good quality and at high prices. These products are often consumed on occasions such as weddings, parties, social gatherings and other celebrations. Due to government regulations, these beverages cannot be consumed by people under the age of 17 in most countries. Therefore, these drinks are becoming increasingly popular with middle-aged consumers, who are between 35 and 55 years old.

MARKET DRIVERS AND RESTRAINTS

As people's living standards have risen around the world, the aspiration of customers to consume premium luxury goods is also expected to increase. The consumption of these products is often associated with occasions such as celebrations. Additionally, reliance on these products for weddings, parties, and social gatherings is expected to drive the market for years to come. Furthermore, the high-end luxury goods market saw tremendous growth in most regions in 2019, mainly driven by robust consumption. Luxury brands have begun to develop specific social media strategies to engage young, tech-savvy consumers in social media activities seeking better value, more personalization, and integrated digital access. A significant increase in the number of Internet users has been observed, as well as an increase in Internet penetration. The increase in the number of consumers suffering from alcohol dependence has been of great concern to the governments of several countries. As a result, many governments have imposed strict rules and regulations regarding the sale and distribution of these products. Additionally, there are restrictions on advertisements and promotions for these products, restricting the marketing strategies available to manufacturers. In addition, some governments also support campaigns and non-governmental organizations (NGOs) that condemn the use of these beverages. These factors are the main obstacles to market growth. Emerging countries are expected to provide significant opportunities for Luxury Wines and Spirits Market growth during the forecast period. The growing acceptance of wine and spirits consumption and the growing popularity of vintage wines for special occasions is expected to drive market growth in countries such as China, Canada and Germany. Additionally, growing social media trends in developed countries are also driving Millennials and Gen Z lifestyles to spend more on premium products, which should open up new avenues for market players to enter emerging markets.

REPORT COVERAGE: 

SEGMENTAL ANALYSIS

Global Luxury Wines and Spirits Market By Type:

• Wines/Champagnes

• Spirits

On the basis of type, the spirits segment accounted for the highest global market share in 2019 and is likely to remain dominant throughout the Luxury Wines and Spirits Market forecast period. The luxury spirits market currently offers alcoholic beverages such as vodka, gin, rum, and brandy that contain more alcohol by volume (ABV) than other alcoholic beverages. The Luxury Wines and Spirits Market has seen significant growth due to the increasing popularity of cocktails. Spirits are predominantly consumed in Europe, as the region hosts many sporting and other events where the consumption of alcoholic beverages is a common trend

Global Luxury Wines and Spirits Market By Distribution Channel:

• Wholesale
• Retail
• E-Commerce
• Others

Based on the distribution channel, the retail segment had a significant market share of luxury wines and spirits in 2019. The growth of the retail segment in the market can be attributed to the increased adoption of retail stores in mature and emerging markets. Additionally, a unique solution provided by these retail formats makes them a very popular choice among consumers. Additionally, these retail formats offer a wide range of products at competitive prices to customers and are generally located in easily accessible areas, adding to the overall appeal of this segment.

REGIONAL ANALYSIS

The Luxury Wines and Spirits Market has been categorized on the basis of geography to offer a clear understanding of the global market, the world Market for Luxury Wines and Spirits has been studied in four regions: North America, Asia Pacific, Europe, Latin America, and Middle East and Africa. Among all regions, Europe dominated the market in 2019 and accounted for the maximum share. The European luxury spirits and wines market is mature and homogeneous with high penetration, dominated by key players such as Campari, Bacardi, Pernod Richard and Diageo. Changing lifestyles, due to the huge increase in disposable income, are further driving the demand for luxury wines and spirits in Europe. To meet growing customer demand, companies are acquiring large local players to expand their portfolio of luxury wine and spirits products in Europe. Asia-Pacific represents a significant part of the Luxury Wines and Spirits Market and is expected to show substantial growth with large numbers of whiskey and rum consumers. In addition, the presence of key manufacturers, such as ThaiBev and HiteJinro, reinforces their contribution.  The North American market represents 23.67% of the total share, despite the slowdown in sales of luxury wines and spirits. Latin American countries offer many expansion opportunities to the main players. Most of the key players in the luxury wine and spirits market are strategizing to promote their products on various social media platforms. Therefore, thanks to the social media marketing strategy, the luxury wine and spirits market is expected to see a critical growth opportunity during the forecast period. The Middle East, Africa and Latin America have an incipient participation and are expected to grow with the increase in public spending and the growth of foreign tourism.

KEY PLAYERS IN LUXURY WINES AND SPIRITS MARKET

The Luxury Wines and Spirits Market is concentrated with well-established players. Key players in the Luxury Wines and Spirits Market include LVMH Moët Hennessy - Louis Vuitton, Diageo, Edrington, Suntory Holdings Limited, Hitejinro Co.Ltd, Davide Campari-Milano S.p.A, Thai Beverage Public Company Limited, Brown-Forman, and Pernod Ricard Bacardi.

RECENT HAPPENINGS IN THE MARKET

• US wine and spirits distributor Southern Glazer's Wine & Spirits (Southern Glazer's) signed a definitive agreement to acquire certain assets of Epic Wines & Spirits of California (Epic). The financial details of the deal remain unchanged. In addition, Southern Glazer has entered into a national distribution agreement with Foley Family Wines (FFW), a producer and distributor of luxury wines, managed and managed by a family. Founded in 1996 by Bill Foley, Foley Family Wines offers a portfolio of wines from some of the best wineries in the world.
• The French wine and spirits group made six key acquisitions in 2019, aimed at strengthening its portfolio of premium brands. The premium segment of the alcoholic beverage market is expected to grow around c. CAGR of 5% between 2019 and 2023, compared to just 0.4% for "standard and inferior" spirits during the same period. "The acquisition strategy is based on booming categories and strengthens key strategic markets that cannot be ignored," explains Pernod Ricard CEO Alexandre Ricard, who has made the group one of the largest buyers in the industry. When Alexandre Ricard became CEO of Pernod Ricard in 2015, the world's second-largest wine and spirits group was experiencing a sales slowdown, and the share price was stagnating.
• LVMH, the world's largest luxury group, has reached an agreement to acquire a 40% stake in Millennium Import Company, an operating division of the Phillips Beverage Company of Minneapolis, United States. Millennium is the majority shareholder of the Zyrardow distillery located near Warsaw, Poland. Millennium also owns the exclusive global rights to Belvedere and Chopin, two of the world's leading luxury vodkas. Moët Hennessy, LVMH's wine and spirits arm with brands such as Dom Pérignon, Moët & Chandon, Veuve Clicquot and Hennessy, will add Belvedere and Chopin to its stable of luxury brands and distribute the two vodkas outside of North America.

DETAILED SEGMENTATION OF GLOBAL LUXURY WINES AND SPIRITS MARKET INCLUDED IN THIS REPORT    

This research report on the global Luxury Wines And Spirits Market has been segmented and sub-segmented based on Type, Distribution Channel, & region.           

By Type:

• Wines/Champagnes
• Spirits

By Distribution Channel:

• Wholesale
• Retail
• E-Commerce
• Others

 By Region:

• North America Europe
• Asia Pacific
• Europe
• Latin America
• Middle East and Africa