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The gin industry, which will surpass USD 34 billion by 2028, will be infused with the premium cocktail culture among consumers. - Actual Market Research
Jun, 15
2023

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The gin industry, which will surpass USD 34 billion by 2028, will be infused with the premium cocktail culture among consumers. - Actual Market Research

 

Infusing gin with additional flavors allows for the creation of unique and customized cocktails with enhanced complexity and depth. The infusion of gin opens up a world of possibilities for creating innovative and artisanal cocktails.

Gin itself is already infused with botanical flavors during the production process. However, bartenders and mixologists often take it a step further by infusing additional botanicals or ingredients directly into the gin. This can be done by steeping the gin with herbs, spices, fruits, or other flavorings to create a more pronounced and personalized flavor profile. Infusing gin allows bartenders to tailor the flavor of the spirit to suit specific cocktail recipes or individual preferences. Bartenders can use infused gin as a base spirit to develop new cocktail recipes or to add a twist to classic cocktails. They often have visually appealing colors or unique visual elements, adding an extra dimension to the cocktail presentation. For example, infusing gin with fruits like berries or citrus can give the spirit a vibrant hue, making the cocktails visually striking and enticing. The infusion of gin in premium cocktails aligns with the craft and premium spirits movement. Consumers are increasingly seeking unique and high-quality drinking experiences, and infused gin cocktails can provide that elevated experience by offering complex and bespoke flavor profiles. Infusing gin in cocktails can create an interactive experience for consumers. They can witness the infusion process, learn about the ingredients used, and engage with the bartender to customize their drink. This enhances the overall cocktail experience and adds an element of personalization.

RTD gin drinks have gained popularity in recent years, driven by the convenience they offer. These pre-mixed beverages provide a quick and easy way for consumers to enjoy gin-based cocktails without the need for mixing ingredients or visiting a bar. Alongside classic gin and tonic variations, there are also pre-mixed gin cocktails like Negroni, Gin Fizz, Moscow Mule, and more. The flavors are often developed to replicate popular cocktail recipes. This makes them convenient for outdoor events, picnics, parties, or occasions where cocktail preparation may not be feasible or convenient. The convenience and approachability of RTD gin drinks can help expand the consumer base for gin. The San Francisco World Spirits Competition (SFWSC) is highly regarded in the drinks industry, with almost every brand striving to earn a top-tier medal.
According to the research report "Global Gin Market Research Report, 2028," published by Actual Market Research, the market is anticipated to cross USD 34 billion, increasing from USD 23.82 billion in 2022. The market is expected to grow at a 6.20% CAGR by 2023–28. Gin offers a wide range of flavors and botanical combinations, which appeals to consumers who are looking for diverse and interesting taste experiences. The botanicals used in gin production can provide a complex and aromatic flavor profile that is appealing to many palates. Its distinct flavor pairs well with different mixers and ingredients, allowing for the creation of a wide range of cocktails, from classic to contemporary. The rise of craft gin and small-batch distilleries has introduced a plethora of unique and high-quality gin products. Gin is perceived by some as a relatively low-calorie and low-sugar option compared to other alcoholic beverages, which aligns with the increasing health and wellness consciousness among consumers. The rise of e-commerce and online platforms has facilitated the growth of the gin market by providing consumers with access to a vast selection of products. Many gin producers have also adopted direct-to-consumer sales models, allowing them to establish direct relationships with customers and promote their unique offerings.

The growing interest in unique and artisanal products, coupled with the increasing popularity of craft spirits, will continue to drive demand for premium and craft gins. Consumers are increasingly seeking new taste experiences and flavor combinations. The gin market is expected to expand further into emerging markets, driven by rising incomes, changing demographics, and an increasing appreciation for spirits. Countries in Latin America, Asia-Pacific, and Africa present untapped opportunities for gin producers. The thriving cocktail culture, along with the rise of mixology as a form of culinary art, will continue to propel the demand for gin, as it remains a key ingredient in classic and contemporary cocktails. United States, Spain, United Kingdom, France & Netherlands are the highest consumption countries of gin globally. Spain leads the per capita consumption of gin with 1.07 Litres, followed by Belgium with 0.73 Litres and UK ranks fourth with 0.55 Litres, while, US ranks seventh with 0.21 litres.
London Dry Gin has gained worldwide recognition as a benchmark for quality and excellence. Its popularity extends far beyond the borders of London and the United Kingdom, with gin enthusiasts across continents seeking out this distinguished spirit. From cosmopolitan bars to small-scale craft distilleries, London Dry Gin remains a staple choice for those who appreciate its refined and timeless appeal. With a legacy spanning centuries and a loyal following of gin enthusiasts, Plymouth Gin continues to delight connoisseurs around the world. From London to New York, Tokyo to Sydney, cocktail enthusiasts and bartenders alike turn to Plymouth Gin for its unrivaled craftsmanship and distinguished flavor profile.

On-trade distribution channels involve partnerships with distributors and suppliers who work closely with gin producers to ensure the availability of their products in bars, restaurants, and other on-trade establishments. These distributors handle the logistics of getting the gin from the producers to the establishments, managing inventories, and facilitating sales. The on-trade distribution channel plays a crucial role in promoting and showcasing gin brands to consumers, offering them a diverse range of options and experiences. It allows consumers to enjoy gin in social settings and provides opportunities for gin producers to create brand awareness, build relationships with establishments, and drive sales in the thriving on-trade market.

Europe indeed leads the global gin market, both in terms of production and consumption. The continent has a rich history and heritage associated with gin, and it continues to be a key player in the industry. North America has indeed emerged as a prominent and rapidly growing market for gin in recent years Bars, restaurants, and retailers in North America have been expanding their gin selections to cater to the increasing demand. As global travel and cultural exchanges have increased, consumers in this region have been exposed to different spirits and cocktail trends, including the rise of gin. This has sparked curiosity and a desire to explore gin as a unique and versatile spirit. The growth of the hospitality industry and the increasing popularity of cocktail culture in the Asia-Pacific region have created a strong demand for gin.

The North American gin market has witnessed significant growth in recent years, driven by changing consumer tastes, the emergence of craft distilleries, and an increasing preference for premium spirits. The United States and Canada have become prominent markets for gin, with consumers exploring new flavor profiles and innovative gin-based cocktails. The Asia-Pacific region has shown immense potential for gin market growth. Rising disposable incomes, evolving consumer lifestyles, and a growing cocktail culture have contributed to the increased demand for gin in countries like Japan, Australia, and India. The region presents lucrative opportunities for both domestic and international gin producers.

The major players in the global premium gin market are Tanqueray, Beefeater, Plymouth, Bombay Sapphire, Gordon’s, Hendricks Neptunia, Scapegrace Black, Ginarte, Fundy Gin and Stadacon? Noir. These players contribute to the market’s growth and are actively involved in product development, partnerships, acquisitions and mergers, the report explains.