Market Trends of Gin Industry
Infusion of Gin in Premium Cocktails
Alcoholic beverages deal with premiumization leading to greater demand as the younger generation who are constantly looking to explore unique and high-quality alcoholic beverages. Market players are opting for the inclusion of natural ingredients in alcoholic beverages to improve their functionality, which is in turn gathering a lot of attention from consumers. As a result, natural flavors are gaining widespread acceptance to enhance the drink's inherent appeal. Gin is rising in consumption as during social gatherings and festive occasions, millennials try to experiment with gin and other alcoholic beverages. For instance; as per the Beverage Information Group, consumers in the United States consumed nearly 1,510 1,000 9-litre cases of Seagram's Gin in the year 2021.
Gin is popular because it has a natural flavor and lends a drink an earthy appeal. Higher consumption of gin-based cocktails is further ensured by the introduction of contemporary on-trade channels and increased spending on cocktail parties, both of which support the expansion of the global market. For instance, several American gin brands have gained significance and created an excellent brand image among consumers. Therefore, all such factors are propelling the consumption of gin across the globe.
Asia-Pacific is the Fastest Growing Region
The Asia-Pacific region is dealing with an increasing number of potential consumers opting for gin as a result of rapid urbanization and westernization. This trend is further influenced by the rising inclination towards partying and booze culture, as more Asian youth consumers are getting involved in drinking habits at an early age, which boosts the demand for gin and related spirits.
As per data cited by IMF and World Bank, there has been a consistent rise in the overall expenditure made by Asian consumers on alcohol and tobacco products, which has been leading to the growth of the overall market. There has been an estimate made that total expenditure is likely to reach around USD 425 billion by 2025. Further, pubs and bars are specializing in the special cocktail party lounge in response to shifts in consumer preferences. Vodka and gin-based cocktails such as Asian Pear Mule, Whisky Mac, Japanese Highball, Singapore Sling, and Soju Watermelon Cocktail are largely favored by affluent consumers. Thus, such factors are promoting the growth of gin in the Asia-Pacific market over the forecast years.
