Spirits - Asia

The Spirits market in Asia is experiencing significant growth and development.

Customer preferences: Customers in Asia have shown a growing preference for premium and high-quality spirits. This trend is driven by increasing disposable income and a desire for more sophisticated and premium products. Consumers are becoming more discerning and are willing to pay a premium for spirits that are perceived as high-end and exclusive. Additionally, there is a growing interest in craft spirits and unique flavors, as consumers seek out new and innovative options.

Trends in the market: One of the key trends in the spirits market in Asia is the rise of local and regional spirits. Consumers are increasingly interested in spirits that are produced locally, as they are seen as more authentic and reflective of the culture and traditions of the region. This has led to the growth of local distilleries and the production of spirits using locally sourced ingredients. In addition, there is a growing trend of Asian-inspired spirits, such as rice-based spirits and herbal liqueurs, which are gaining popularity both domestically and internationally. Another trend in the market is the increasing popularity of cocktail culture. As consumers become more knowledgeable about spirits and mixology, there is a growing demand for premium spirits that can be used to create unique and innovative cocktails. This trend is particularly pronounced in urban areas, where cocktail bars and speakeasies have become popular social destinations. As a result, there is a growing demand for spirits that are versatile and can be used in a wide range of cocktails.

Local special circumstances: One of the unique aspects of the spirits market in Asia is the diverse range of local spirits and traditional alcoholic beverages that are consumed in different countries and regions. For example, in Japan, there is a strong tradition of drinking sake, while in Korea, soju is the most popular spirit. These local spirits have a long history and cultural significance, and continue to be an important part of the drinking culture in these countries. As a result, international spirits brands need to understand and respect these local traditions in order to be successful in the market.

Underlying macroeconomic factors: The growth of the spirits market in Asia can be attributed to several underlying macroeconomic factors. One of the key drivers is the rapid economic growth in many Asian countries, which has led to an increase in disposable income and a growing middle class. As a result, consumers have more money to spend on luxury goods, including premium spirits. Additionally, changing demographics, such as a younger population and increasing urbanization, have also contributed to the growth of the market. Younger consumers are more open to trying new products and are more likely to experiment with different spirits and cocktails. Finally, the increasing influence of Western culture and the globalization of the spirits industry have also played a role in shaping consumer preferences and driving the growth of the market. Overall, the spirits market in Asia is expected to continue to grow as consumers become more sophisticated and demand for premium and unique spirits increases.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.