Luxury spirits is referred to as the aggregation of the luxury brands in every category in terms of price and their status within their category.
According to the figures from Euromonitor International, the value of luxury spirits market will reach £12.8 billion in 2020 based on the current exchange rates and prices.
On the other hand, the volume of sales made in the spirits category is thought to slow down to a near stop from 2015 to 2020, says the recent research by the IWSR.
The main player in the luxury spirits market will still be the US with a growth in value to £4.9 billion in 2020 from £2.5 billion. Meanwhile, the UK is expected to have a growth from £432 million to £525 million.
Different categories of luxury spirits are expected to grow by the end of this current decade; most notably mescal/tequila, and whisky — from £579 million to £1.2 billion and £1.9 billion to £4.1 billion.
Global growth of luxury spirit in the last half of the decade (2015 to 2020), however, will be slower than the last 5 years. This growth slowdown will only affect some of the major markets. The US, who has seen 52% growth in 2010 to 2015, will only be seeing a 31.1% growth in 2015 to 2020.
According to Spiros Malandrakis, the senior analyst of Euromonitor International, the major benchmark of the Luxury spirits industry is the great recession. Western luxury brands were pushed to focus more on developing nations and China. And although China has suffered from recession, they are still open to western companies.
“But the latest benchmark in luxury spirits has been this bubble in China bursting, in line with crackdown on extravagant spending brought in by the government. This came at a time when sophistication of the Chinese palate increased,” says Malandrakis.
However, the biggest issue recently has been on how luxury brands would stand out from its standard and premium counterparts.