The global flavored spirit market is projected to reach $30 billion by 2031 at a compound annual growth rate of 5%, according to a new report from Market Research Intellect. The market is currently being driven by consumer demand for unique taste profiles and experiential drinking options beyond traditional spirits.
“Infusions of fruit, spice, herbal and dessert-inspired flavors across vodka, rum, whiskey and tequila categories are attracting younger demographics and casual drinkers,” the report states. “Growth is driven by cocktail culture expansion, social consumption trends and premium packaging that enhances shelf appeal. Manufacturers focus on clean-label flavoring, reduced sugar formulations and limited-edition seasonal launches to strengthen brand differentiation.”
North America accounts for the largest share of the flavored spirits market as a result of developed technology and an intense consumer market. The region is expected to see a gradual rise through the forecast period because of the established infrastructure. Asia-Pacific is predicted to be the fastest-growing market over the forecast period, with the expansion of the middle class in China, India and Japan.
Further, the global flavored spirits market is being driven by increased investment and focus on research and development as a competitive advantage. Companies are working to create innovative products with efficiency, scalability and sustainability. Emerging technologies are helping product developers continue to innovate while reducing costs and time.
“R&D spending in the flavored spirit market is at an all-time high, with leading players allocating upwards of 10-13% of their annual revenue toward product development and process optimization,” the report states.
