Flavored Whiskey Market Size, Share, Trends, Growth 2032

Flavored Whiskey Industry Prospective:

The global flavored whiskey market size was worth around USD 10.32 billion in 2023 and is predicted to grow to around USD 18.81 billion by 2032 with a compound annual growth rate (CAGR) of roughly 6.90% between 2024 and 2032.

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Flavored Whiskey Market: Overview

Flavored whiskey is prepared by adding artificial or natural flavors to conventionally consumed whiskey. According to market research, the demand for flavored whiskey is expected to gain growth momentum during the forecast period. Whiskey producing giants such as Jack Daniels and Wild Turkey have made an entry in the flavored whiskey segment prompting other players to enter the industry as well.

The preparation of flavored whiskey generally involves blending or infusing the flavors in whiskey which can be achieved in several ways. The most common method of producing flavored whiskey uses a process called infusion which entails the addition of naturally derived spices and fruit in whiskey.

The process is followed by keeping the mixture for weeks before filtering it to obtain the final product. The demand for flavored whiskey is expected to grow due to changing consumer preferences as traditional whiskey is considered extremely strong among a large portion of alcohol consumers.

The growing innovation in the flavored whiskey segment may further promote higher market revenue. One of the key challenges in the industry is the growing health concerns surrounding excessive consumption of alcohol and regulatory challenges.

Key Insights:

• As per the analysis shared by our research analyst, the global flavored whiskey market is estimated to grow annually at a CAGR of around 6.90% over the forecast period (2024-2032)
• In terms of revenue, the global flavored whiskey market size was valued at around USD 10.32 billion in 2023 and is projected to reach USD 18.81 billion, by 2032.
• The market is projected to grow at a significant rate due to the changing consumer preference.
• Based on the type, the bourbon segment is anticipated to command the largest market share.
• Based on the end-users, the retail segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on region, Europe is projected to dominate the global market during the forecast period.

Flavored Whiskey Market: Growth Drivers

Changing consumer preference to drive market demand rate during the projection period

The global flavored whiskey market is expected to grow due to the changing preferences among consumers. The younger population has shown more inclination toward flavored whiskey which is less harsh as compared to conventional whiskey. For instance, Gen Z typically prefers to consume whiskey along with additional flavors such as chocolate, caramel, or vanilla.

Furthermore, the demand for flavored whiskey can benefit from the rise of social drinking culture which involves casual drinking during an outing. Consuming regular whiskey more frequently can be intimidating for a large group of audience. However, flavored whiskey is perceived to be less overwhelming, especially for younger consumers.

Increasing accessibility to drinks will promote market expansion rate in the future

Accessibility to spirit-based drinks has improved over the years. Unlike the last decade, several novel ways of accessing alcoholic drinks have emerged in the market.

For instance, the rise of frequent visits to hotels, restaurants, and cafes (HoReCa) facilities has allowed greater consumer awareness regarding the type of whiskey brands and types available in the market. Furthermore, the growing sale of alcoholic beverages through legal online portals including e-commerce websites has further helped the market for flavored whiskey flourish.

In June 2024, DoorDash, an online food delivery and logistics platform, announced the expansion of its responsible and safe delivery of alcohol with the aid of additional merchants. DoorDash launched a new range of advertising allowing brands to improve customer connection and networking.

In March 2023, emerging alcohol brands in the UK such as Ace + Freak, Au Vodka, Duppy Share, and NIO Cocktail announced the launch of a 1-hour delivery service while being environmentally conscious. The alcohol e-commerce sector has been growing rapidly promoting demand in the global flavored whiskey market.

Flavored Whiskey Market: Restraints

Health and social risks associated with excessive alcohol consumption to limit the industry’s expansion rate

The global industry for flavored whiskey is projected to be restricted due to the health and social risks associated with the irresponsible consumption of alcohol. Some of the most prominent health conditions caused by excessive alcohol consumption include liver failure, obesity, diabetes, atrial fibrillation, and hypertension. Furthermore, the economic and social impact of alcoholism can be quantified.

According to market analysis, the surging rate of alcoholism worldwide is a growing cause of concern in several economies. Underage drinking has become widely common due to easier accessibility to flavored whiskeys and other alcohols.

Flavored Whiskey Market: Opportunities

Rising innovation strategy adopted by market players to generate growth opportunities

The global flavored whiskey market is expected to generate growth opportunities due to the growing rate of innovation. The introduction of new flavors in the market broadens the consumer reach for flavored whiskey brands. In August 2024, Pernod Ricard India announced the launch of two new whiskies in the country in the form of Blenders Pride Four Elements Premium Whisky and Royal Stag Double Dark Peaty Whisky. The company plans to triple its revenue in the next decade by primarily focusing on premium offerings and delivering innovation-based products.

In August 2024, Beyoncé Knowles-Carter, a popular US celebrity, announced a partnership with Moët Hennessy to launch a new range of whiskey called SirDavis. According to official reports, the new products have been launched after years of research.

In August 2024, Pernod Ricard launched peanut butter-flavored Skrewball whiskey in the New Zealand and Australian markets by partnering with the Pacific divisions of Pernod Ricard. The producers of flavored whiskey are adopting a novel approach toward branding and advertising. The growing focus on customizing flavors of the whiskey to meet regional sentiments has been helping market players leave extensive footprints in the commercial industry.

Flavored Whiskey Market: Challenges

Competition from other alcohol and traditional whiskey to challenge the market expansion rate

The global industry for flavored whiskey is expected to be challenged by the growing competition from alternate beverages. For instance, several whiskey enthusiasts may continue to prefer consuming traditionally available whiskey. Moreover, extreme market fragmentation is a result of the massive number of options among alcohol consumers in the form of different types of drinks such as vodka, rum, and gin.

Furthermore, changing regulations regarding the production, sale, and consumption of alcoholic beverages may further dilute the industry; s overall revenue.

Flavored Whiskey Market: Report Scope

Flavored Whiskey Market: Segmentation

The global flavored whiskey market is segmented based on types, flavors, end-users, and region.

Based on the type, the global market divisions are blended, malted, scotch, bourbon, and others. In 2023, the highest revenue was generated in the bourbon segment. The profile and texture of flavored bourbon are the most critical growth drivers in the segment. Some of the most common flavors include cinnamon, honey, and vanilla. In 2023, the bourbon segment grew at a rate of over 24%. During the forecast period, the blended segment is expected to generate significant growth revenue due to its higher versatility.

Based on flavors, the global flavored whiskey industry is divided into cider, caramel, honey, citrus, and apple.

Based on the end-users, the global market segments are hotels, restaurants, cafes (HoReCa), and retail. In 2023, the highest growth was listed in the retail segment. The growing demand for premium whiskey brands including flavored versions is fueling the segmental revenue. Whiskey enthusiasts typically prefer to spend a hefty amount on unique whiskey flavors and textures resulting in greater revenue. For instance, the cost of Isabella's Islay whiskey is over USD 6 million.

Flavored Whiskey Market: Regional Analysis

Europe will emerge as the largest region during the forecast period

The global flavored whiskey market will be led by Europe during the projection period. In 2023, it accounted for nearly 30.05% of the global revenue. The changing consumer preference across European nations with a growing inclination toward flavored whiskey is expected to emerge as the prominent regional market growth driver.

In addition to this, Europe has a widely popular social drinking culture influenced by several factors such as older customs, traditions, and generally positive acceptance toward alcoholic drinks. The surge in the launch of new flavored whiskeys will help the region thrive in the coming years. North America is projected to emerge as the second-highest revenue generator during the forecast period.

In 2023, it held control over 26.7% of the total revenue. The growing demand for whiskey-based drinks across Canada, the US, and Mexico is promoting regional revenue. Mexico, for instance, is enjoying a large influx of international tourists helping fuel the demand for flavored whiskey in the region. The rise of media personality-owned whiskey brands including flavored options has been influential in the regional market growth trajectory.

Flavored Whiskey Market: Competitive Analysis

The global flavored whiskey market is led by players like:

• Wild Turkey (Campari Group)
• Black Velvet (Heaven Hill Brands)
• Jack Daniel’s (Brown-Forman)
• Bird Dog Whiskey (Western Spirits)
• Jim Beam (Beam Suntory)
• Knob Creek (Beam Suntory)
• Skrewball Peanut Butter Whiskey
• Red Stag by Jim Beam
• Crown Royal (Diageo)
• Bulleit Bourbon (Diageo)
• Fireball Cinnamon Whisky (Sazerac)
• Canadian Club (Beam Suntory)
• Evan Williams (Heaven Hill Brands)
• Southern Comfort (Sazerac)
• Ole Smoky Distillery

The global flavored whiskey market is segmented as follows:

By Type

• Blended
• Malted
• Scotch
• Bourbon
• Others

By Flavors

• Cider
• Caramel
• Honey
• Citrus
• Apple

By End-Users

• Hotel
• Restaurant
• Cafe (HoReCa)
• Retail

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