GLOBAL GIN MARKET (2024 - 2030)

The Global Gin Market was valued at USD 16.03 Billion in 2023 and is projected to reach a market size of USD 22.26 Billion by the end of 2030. Over the forecast period of 2024-2030, the market is projected to grow at a CAGR of 4.8%. 

The gin market has undergone a significant resurgence in recent years, fueled by evolving consumer tastes and a renewed appreciation for craft spirits. Its versatility in cocktails and the infusion of diverse botanical flavors have contributed to its popularity among consumers. Craft and artisanal gin distilleries have proliferated, offering a wide spectrum of botanical blends, from classic juniper-forward profiles to innovative combinations featuring herbs, spices, and local botanicals. This diversification has expanded the appeal of gin, attracting a demographic that seeks unique, high-quality, and locally sourced products. The rise of premium and ultra-premium gin segments has reshaped the market landscape, with consumers increasingly valuing authenticity, craftsmanship, and unique flavor profiles,

Key Market Insights:

The United Kingdom leads as the top exporter of gin globally, hosting over 315 distilleries. Projections suggest the gin market could hit 60 million liters by 2027, with an expected per-person consumption of around 0.18 liters in 2023.

Bars and pubs are making fancy cocktail lounges because people like them more now. Fancy drinks with vodka and gin, like Asian Pear Mule, Whisky Mac, Japanese Highball, Singapore Sling, and Soju Watermelon Cocktail, are really popular among richer customers. This is making gin more popular in Asia-Pacific countries and is expected to keep growing in the coming years.

In the next five years, the gin market in India is expected to get bigger by about 7%. By 2028, it could reach a total value of over $2 billion.

Gin Market Drivers:

Innovation and Diversity in gin market is propelling its growth significantly.

The constant innovation in gin production is a major driver. Distillers are experimenting with diverse botanicals and unique flavors, catering to evolving consumer tastes. This creativity attracts a wider audience, including younger demographics eager to explore new and distinct offerings. Craft and small-batch gin producers, especially, contribute to this diversity by introducing unconventional ingredients and production techniques, creating a rich tapestry of choices for consumers.

Cocktail Culture and Premiumization trend among consumers are driving the demand for gin among them.

The rise of cocktail culture and the premiumization trend are also propelling the gin market. Consumers increasingly appreciate high-quality, artisanal spirits for crafting sophisticated cocktails. Gin's versatility in cocktails and its association with classic drinks like martinis and gin and tonics make it a preferred choice. Moreover, the emphasis on premium and craft gins, often linked with authenticity and superior quality, encourages consumers to explore and indulge in higher-priced, unique offerings, thus driving market growth.

Gin Market Restraints and Challenges:

Competition and Differentiation in gin market is a major hinderance in growth of businesses in this market.

With a growing number of distilleries and brands entering the market, standing out becomes increasingly difficult. Competition intensifies as new players bring diverse flavors and branding strategies. For established brands, maintaining relevance and distinctiveness amid this influx requires continuous innovation and effective marketing to capture consumer attention.

Regulatory and Compliance Hurdles is a challenge in gin market.

The alcohol industry, including gin production, faces stringent regulations and compliance standards related to manufacturing, labeling, and distribution. Meeting these standards while navigating evolving legal landscapes across different regions or countries can be complex. Ensuring adherence to regulations, especially when expanding into international markets, demands careful attention to legal nuances, which can pose challenges for both established and emerging gin producers.

Gin Market Opportunities:

The gin market holds promising opportunities driven by evolving consumer preferences and the demand for unique experiences. Emerging trends like craft and artisanal spirits continue to attract enthusiasts seeking novel flavors and premium quality. Additionally, the increasing interest in botanicals, sustainability, and local sourcing presents avenues for innovation. The market expansion into new regions and the rising popularity of gin-based cocktails further fuel growth prospects. Leveraging these trends to create innovative products, engaging brand stories, and sustainable practices can unlock significant opportunities for distilleries within the dynamic gin market.

GIN MARKET REPORT COVERAGE:

 Gin Market Segmentation:

 Gin Market Segmentation: By Gin Type:

• London Dry Gin
• Old Tom Gin
• Plymouth Gin
• Contemporary or New Western-Style Gin

In 2023, the largest segment in the gin market is the London Dry Gin category having market share of 42%. Its dominance stems from its historical significance, adherence to a strict production process, and a widespread global appeal. London Dry Gin, known for its juniper-forward profile and balanced botanicals, embodies the traditional essence of gin. Its popularity lies in its versatility for cocktail-making, consistent quality, and recognizability among consumers. Its well-defined standards and strict production regulations have established trust and credibility among gin enthusiasts, making it the go-to choice for many. The fastest-growing segment in the gin market is the Contemporary or New Western-Style Gin. Contemporary gins experiment with diverse botanicals, often incorporating unconventional flavors like exotic fruits, herbs, and spices. This difference from the classic gin profile has captured the attention of younger consumers seeking unique and adventurous drinking experiences. The emphasis on creativity and the ability to craft distinct, bold flavors within this segment has fueled its accelerated growth.

Gin Market Segmentation: By Price Point:

• Premium or High-End Gins
• Mid-Range Gins
• Economy Gins

The largest segment by price point in the gin market is the Mid-Range category holding an approximate market share of 45% in 2023. This segment comprises gins that offer a balance between quality and affordability, appealing to a broad consumer base. It encompasses both standard or traditional Premium gins, which provide reliable quality at a reasonable price, and Craft or Artisanal gins that cater to consumers seeking unique flavors. The Mid-Range segment strikes a balance between perceived value and quality, capturing a significant portion of the market as it caters to both enthusiasts looking for elevated experiences and budget-conscious consumers seeking a step above economy options without a substantial premium price. The fastest-growing segment by price point in the gin market is the Premium segment expected to grow at a CAGR of 7.6%. This growth is primarily fueled by shifting consumer preferences toward quality, unique flavors, and the overall experience associated with premium products. Craft distilleries and smaller producers often dominate this segment, offering handcrafted, high-quality gins with distinct botanical blends.

 Gin Market Segmentation: By Distribution Channel:

• Retail Distribution
• On-Trade
• Online Retail
• Specialty Liquor Stores
• Others

The largest segment by distribution channel is Retail distribution having market share of 62% in 2023. Retail outlets, including supermarkets and liquor stores, have a broad consumer reach and accessibility, contributing to their dominance in the market. Consumers often prefer the convenience of purchasing gin during routine shopping trips, making retail distribution the go-to channel for a significant portion of the target audience. The diverse range of gins available in retail stores caters to varying consumer preferences. The fastest-growing segment among these is Online Retail growing at a rate of 18%. This segment has experienced rapid growth due to the increasing trend of online shopping and the convenience it offers to consumers. The shift in consumer behavior, especially post-COVID-19, has accelerated the demand for gins through online platforms. The accessibility, wide product variety, and the ability to reach a global audience make online retail the fastest growing in the gin market.

 Gin Market Segmentation: Regional Analysis:

• North America
• Asia- Pacific
• Europe
• South America
• Middle East and Africa

In 2023, the largest region in the gin market is Europe, holding market share of 40%, driven by the United Kingdom's strong historical association with gin consumption and production. The UK, a big market for gins, has witnessed a surge in craft and artisanal distilleries, contributing to the region's dominance. The European market benefits from a consumer base with a rich appreciation for high-quality spirits. The presence of gin culture, coupled with a demand for premiumization and innovative flavor profiles, makes Europe as the leading and most influential region in the global gin market. The fastest-growing region in the gin market is Asia-Pacific growing at a CAGR of 13%. This growth can be attributed to a rising consumer affinity for gins, coupled with a growing middle class with increased disposable income. The region's evolving cocktail culture, expanding urbanization, and an increasing demand for unique and high-quality products contribute to the surge in demand for gins.

COVID-19 Impact Analysis on the Global Gin Market:

The COVID-19 pandemic presented a mixed impact on the global gin market. Initially, the market experienced setbacks due to restrictions on hospitality and reduced consumer spending, impacting sales and distribution channels significantly. The crisis also spurred innovation as distilleries adapted, creating online sales channels and offering home delivery services, tapping into the rising trend of at-home consumption. As restrictions eased, there was a gradual recovery in on-premises consumption, especially in regions where reopening occurred. Consumer interest in premium and craft gins persisted, reflecting a shift in preferences towards quality and unique experiences. Overall, while the pandemic disrupted the market temporarily, it also acted as a catalyst for innovation and adaptation for businesses in gin market.

Latest Trends/ Developments:

A prevalent trend in the gin market involves a growing emphasis on sustainability and the use of locally sourced botanicals. Distilleries are increasingly focused on reducing their environmental footprint by employing eco-friendly production practices, including renewable energy use, recycling, and waste reduction. Moreover, there's a rising interest in sourcing botanicals locally, forging partnerships with nearby farmers to obtain fresh, high-quality ingredients. This trend not only promotes sustainability but also appeals to consumers seeking transparency and connection to the origins of their spirits.

A noteworthy development in the gin market is the emergence and growing popularity of non-alcoholic and low-alcohol by volume (ABV) gin alternatives. With an increasing focus on health and wellness, consumers are seeking alcohol-free or lower-ABV options without compromising on taste or complexity. Distilleries are innovating by creating non-alcoholic gins that mimic traditional gin flavors using botanicals and innovative production techniques. This development caters to a wider audience, including those looking for sophisticated alcohol-free alternatives and those seeking to moderate their alcohol intake.

Key Players:

• Bacardi Limited
• Blackforest Distilleries
• Sipsmith Distilleries
• Davide Campari-Milano N.V.
• Diageo Plc
• William Grant & Sons Ltd.
• Warwick Valley Winery
• Anheuser-Busch Companies

In March 2022, Hendrick's Neptunia Gin was introduced by William Grant & Sons. Crafted by the master distiller Lesley Gracie, this gin incorporates a blend of Scottish coastal botanicals, maintaining the unmistakable Hendrick's signature.