Flavored Whiskey Market Size, Share, Growth Report 2030

Industry Prospective:

The global flavored whiskey market is estimated to grow with a compound annual growth rate (CAGR) of approximately 7.9 percent over the forecast period. The report analyzes the flavored whiskey market’s drivers, restraints/challenges, and the effect they have on the demands during the projection period. In addition, the report explores emerging opportunities in the flavored whiskey market.

Report Scope:

Flavored Whiskey Market: Overview

Whiskey is perhaps the most popular alcoholic beverage in the world, and makers have been experimenting with it from a new angle. Flavored whiskey has a combination of traditional malt constituents as well as one or more extra flavors. Despite the addition of extra flavors, whiskey still has an alcohol concentration of more than 40% by weight. Big whiskey firms are creating, labeling, and marketing flavored whiskey to provide a unique experience for their customers. However, by providing a variety of alternatives, the companies were able to assure successful client brand loyalty as well as attract and recruit new customers. Flavored whiskeys have been offered on a commercial basis for more than five decades, with early versions of flavored whiskey containing fruits and spices. Meanwhile, blended tastes have become popular in recent years, and various such items may be found at liquor stores.

COVID-19 Impact:

In most parts of the world, the COVID-19 pandemic has lowered alcohol sales. The food service area's lockdown is having an impact on the worldwide flavored whiskey business. The demand for flavored whiskey has decreased as a result of lower liquor consumption in most parts of the world. Consumers' social distancing attitude during this pandemic condition resulted in an upsurge in goods sales through online sales channels. The worldwide market is being influenced by shifting consumer consumption patterns.

Flavored Whiskey Market: Growth Drivers

Introduction of new products may flourish the market growth.

Because of the development in the inventive and expanding culture of cocktails throughout the world, businesses are entering the flavored whiskey industry. Companies are experimenting with the aging process to create a variety of flavored whiskeys. Some of the attempts included vanilla and salted caramel flavored whiskey, which became highly popular in North America. Marina Kitchen and Restaurant & Bar teamed up with Malahat Spirits to create a fresh flavor for its patrons. Honey-infused whiskey was the taste. Their rooftop beehives were the source of this honey. Maple is another well-known whiskey flavor, and several other brands produce maple-flavored whiskey. Jim Beam's Red Stag has introduced a new line of flavored whiskies, including black cherry and honey tea.

Additionally, Youth centric trend is also contributing to the rapid expansion of the global flavored whiskey market all over the world. Growing youth population and a rise in female drinking are necessitating a different taste profile to target, which is why flavored alcoholic drinks are anticipated to grow rapidly in emerging countries throughout the world. Additionally, the competitive mature spirit industry is predicted to raise demand for flavored whiskey, leading to the introduction of more appealing youth-centric cocktails in the market.

Flavored Whiskey Market: Restraints

Growing inclination towards flavored beer may limit the market growth

Large consumer bases including millennials and females are shifting towards the consumption of flavored beer. Also, heavy investments of the brewers for the development of crafted beers as well as zero or low alcohol content beer to expand its consumer base may hinder the demand for flavored whiskey. To fulfill the growing demand for beer, there is a huge number of beer breweries across the world. For instance, as of 2020, more than 8,000 breweries are responsible for the beer brands available in the U.S. Additionally, a wide range of flavored beer ranging from melon to refreshing citrus to unique flavors is leading to a rise in consumption of flavored beer. All such factors may impede the growth of the global flavored whiskey market.

Flavored Whiskey Market: Opportunities

Surge in usage in restaurants and food applications is expected to offer excellent growth opportunities.

One of the most important divisions of the liquor business is flavored whiskey. Whiskey's popularity is spreading beyond the bar and into the kitchen. Whiskey is being used by chefs in their cuisine to improve the flavor of their dishes. The alcoholic spirit has a flavor that is akin to the heightened saltiness of seafood, the smokiness of smoked food, and the sweetness of sweets. When compared to wine, the whiskey market sector offers a wider range of flavors. While many restaurants offer whiskey on their menus, it's intriguing to observe how they're combining the drink with a range of cuisines, creating a new market trend.

Flavored Whiskey Market: Challenges.

Flavored low alcohol content drinks pose a major challenge for the market.

Inclination towards low alcohols and zero alcohol content drinks is increasing in developed as well as developing countries. Increased awareness regarding hazards of alcohol consumption is driving this trend. Moreover, many new market players are introducing exciting flavors to divert customers from alcoholic drinks which are also affecting the market growth.

Flavored Whiskey Market: Segmentation

The global flavored whiskey market is bifurcated based on type, application, and region. Based on type, the market is categorized into fruit-flavored whiskey, caramel-flavored whiskey, honey-flavored whiskey, and others. Among these, honey-flavored whiskey led the market with over 40 percent share in the global market. The application segment of the market is segregated into hotel, retail, catering services, and restaurants.

Recent Developments

• In February 2022, Eastside Distilling introduces a new premium maraschino cherry whiskey as part of their limited-edition flavored whiskey portfolio.
• In July 2021, Two Trees Beverage Co. Inc. launched two novel seasonal flavored whiskeys- peppermint and pumpkin spice flavored whiskeys.

Regional Landscape

Europe led the market with over 40 percent share in the global market. This is attributed to the increasing inclination of youth towards flavored alcoholic beverages. Besides several alcohol consumers especially whiskey consumers are more in the UK, Germany, France, and Italy which offers a great opportunity for market expansion. North America is also expected to contribute significant revenue in the global flavored whiskey market over the forecast period. Asia Pacific is expected to generate significant revenue for the flavored whiskey sector during the forecast period. Key factors such as large alcohol consumer population, an increasing percentage of female alcohol consumers, and the presence of major whisky manufacturers in the region will help boost the regional market growth. China and India are the largest markets for alcoholic drinks. Also, the number of youth consumers is increasing at a rapid pace which ensures healthy growth of the market in these countries.

Competitive Landscape

Major players functioning in the global flavored whiskey market include The Crown Royal Company, Pernod Ricard SA., Brown-Forman Corporation, Diageo PLC, Bacardi Limited, The Old Bushmills Distillery Co., and Beam Inc.

Global flavored whiskey market is segmented as follows:

By Type

• Honey Flavored Whiskey
• Caramel Flavored Whiskey
• Fruit Flavored Whiskey
• Others

By Application

• Retail
• Hotel
• Restaurants and
• Catering services

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa