Vodka Market Size
| Study Period | 2018 - 2028 |
| Market Volume (2023) | 3.15 Billion liters |
| Market Volume (2028) | 3.84 Billion liters |
| CAGR (2023 - 2028) | 4.03 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
Vodka Market Analysis
The Vodka Market size is expected to grow from 3.15 billion liters in 2023 to 3.84 billion Liters by 2028, at a CAGR of 4.03% during the forecast period (2023-2028).
Government regulation regarding trade and mobility during the COVID-19 pandemic has significantly altered the places and patterns of vodka consumption across the worldwide market. As consumers were avoiding on-premise venues as a preventive measure, businesses witnessed a strong demand across off-premise channels such as convenience stores and liquor shops. For instance, Constellations Brands saw a 10% increase in sales volume of their vodka in the US off-premise channel in February 2020. One of the driving forces behind the market's ability to survive the epidemic has been domestic consumption, together with brand stocking.
The market is most likely to be pushed in the medium term by the rising global young adult population, high disposable income, and consumer desire for premium/super-premium alcoholic beverages.
The recent trend impacting the largest vodka market i.e. North America includes the Russia-Ukraine war. Even though not much vodka made in Russia is exported to overseas markets, the governors of North American states banned the sale of Russian vodka as a symbolic move to boycott Russia against its invasion of Ukraine. For instance, in February 2022, the governors of Utah, New Hampshire, and Ohio ordered state-owned liquor shops to discontinue the sales of Russian-made and branded vodkas.
Vodka Market Trends
Rise in Popularity of Premium Vodka
- Consumers worldwide have more discerning tastes now than they had five years ago. They constantly need to try out novel and premium alcoholic drinks, which often feature a mix of quality ingredients and personalized botanical infusions to produce a pleasing taste. Additionally, premium vodkas are subjected to multiple distilling stages to improve their functionality as well as overall appeal, which sets them apart from the conventional varieties.
- Further, the rise in health consciousness is promoting the consumption of healthier alcoholic beverages characterized by the blend of natural ingredients, low-calories, and sugar-free formulations. Therefore, the premium vodka range has greater prospects, especially in the international market, owing to the growing consumer interest in a sustainable and healthy lifestyle.
- Moreover, premium vodka brands are introducing new products in the ready-to-drink (RTD) beverage category as the segment is witnessing a significant surge in consumer demand across the global market. For instance, high-end vodka brands are introducing canned products focusing on spritz serves. For instance, in February of 2023, Absolut, the UK’s No.1 premium vodka, revealed its latest limited-edition bottle, encapsulating the brand’s ethos that incredible things can be achieved when people come together and mix beyond their differences.
- Due to its recent success, other companies and even bars have started using the term for their wine, water, and alcohol pours. RTD vodka innovation is accelerating in developing countries as customers continue to call for flavorful, light drinks like hard seltzers, which is expected to drive growth in the vodka market during the forecast period.
North America is the Largest Market
- The increasing popularity of flavored vodkas such as Texas grapefruit, blood orange, Bartlett pear, and sun-ripened watermelon is driving sales in the United States. Additionally, the sector's expansion in Canada will be bolstered by the increasing demand for tart cherry and limeade vodka flavors, along with the addition of sweet citrus flavors. Alcoholic drinks, including Pyat Ozar, Svedka, and Hlibny Dar, are also expected to expand the market.
- Additionally, the Canadian government's assistance in enhancing the premium white spirits' distribution system is anticipated to spur market expansion. Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, announced in 2019-2020 that Canada's vodka compositional standard was modified to encourage greater innovation, increase consumer choice, and promote trade in the nation's expanding spirits sector.
- Moreover, the popularity of vodka is rising as a result of the rising demand for premium, original drinks with bold flavors. One of the most often consumed artisanal spirits in the area is vodka. Vodka demand in the region is anticipated to be driven by rising consumption.
- According to the Distilled Spirits Council, United States, vodka sales volume amounted to about 76.9 million 9-liter cases in 2022. Potatoes and cereal grains are no longer the only agricultural products that Canadian distillers can utilize to make vodka. By using novel ingredients like honey, apples, or dairy in vodka manufacturing, Canada will be better able to compete internationally and provide customers with additional options.
Vodka Industry Overview
The global vodka market is highly fragmented owing to the presence of multiple regional and multinational companies offering a wide range of vodka variants with innovative flavors and trying to maintain their leadership position in the market studied.
Some of the major players in the market include Diageo Plc, Brown Forman, LVMH Moët Hennessy Louis Vuitton, Pernod Ricard, and Constellation Brands Inc., among others embarking on business strategies, including product innovations, partnerships, expansion of online and offline distribution networks to enhance brand visibility and portfolio of offerings, thus, augmenting the growth of the market.
For instance, in March 2022, brand directors and partners, Stas Karanikolaou and Zack Bia, have teamed up with Global Brand Equities to introduce Sunny Vodka, the latest addition to their portfolio.
Vodka Market Leaders
Diageo PLC
LVMH Moët Hennessy Louis Vuitton (Belvedere Vodka)
Constellation Brands Inc.
Brown-Forman
Pernod Ricard
*Disclaimer: Major Players sorted in no particular order
Vodka Market News
- September 2022: Brown‑Forman Corporation, one of the largest American-owned spirits and wine companies, announced its plans to distribute its brands in Slovakia from September 2023. This strategic move aims to foster the development of its portfolio, with a specific focus on the renowned Jack Daniel's Tennessee Whiskey and Finlandia Vodka brands.
- August 2022: Constellation Brands launched ‘Fresca Mixed,’ a new line of premium, pre-mixed cocktails in two varieties - Vodka Spritz and Tequila Paloma.
- April 2022: Stoli Group announced the launch of a limited-edition Ukrainian-themed vodka for the World’s Central Kitchen Ukrainian Relief to raise funds for Ukrainian refugees.
- January 2022: Constellation Brands Inc., a leading beverage alcohol company, entered a brand authorization agreement with the Coca-Cola Company in the United States to bring the Fresca brand into beverage alcohol.
Vodka Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions & Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Subsitute Products and Services
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Flavored
5.1.2 Non-Flavored
5.2 By Distribution Channel
5.2.1 On-Trade
5.2.2 Off-Trade
5.2.2.1 Supermarkets/Hypermarkets
5.2.2.2 Specialty Stores
5.2.2.3 Online Retailers
5.2.2.4 Other Distribution Channels
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Spain
5.3.2.2 United Kingdom
5.3.2.3 Germany
5.3.2.4 France
5.3.2.5 Italy
5.3.2.6 Russia
5.3.2.7 Rest of Europe
5.3.3 Asia Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle East and Africa
5.3.5.1 South Africa
5.3.5.2 Saudi Arabia
5.3.5.3 Rest of Middle East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Diageo PLC
6.3.2 LVMH Moet Hennessy Louis Vuitton (Belvedere Vodka
6.3.3 Constellation Brands Inc.
6.3.4 Brown-Forman
6.3.5 Pernod Ricard
6.3.6 Ketel One Worldwide B.V.
6.3.7 Bacardi Limited
6.3.8 Fifth Generation Inc.
6.3.9 Becle SAB de
6.3.10 Luctor International
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. DISCLAIMER
Vodka Industry Segmentation
Vodka is a clear, alcoholic beverage that can be manufactured from a variety of grains or potatoes.
The global vodka market is segmented by product type, distribution channel, and geography. By product type, the market is segmented into flavored and non-flavored. Based on the distribution channel, the market studied is segmented into on-trade and off-trade. By off-trade, the market is further segmented into supermarkets/hypermarkets, specialty stores, online retailers, and other distribution channels. The report analyzes emerging and established economies worldwide, comprising North America, Europe, South America, Asia-Pacific, Middle-East, and Africa.
For each segment, the market sizing and forecasts have been done in terms of value (USD million).
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Vodka Market Research FAQs
How big is the Vodka Market?
The Vodka Market size is expected to reach 3.15 billion liters in 2023 and grow at a CAGR of 4.03% to reach 3.84 billion liters by 2028.
What is the current Vodka Market size?
In 2023, the Vodka Market size is expected to reach 3.15 billion liters.
Who are the key players in Vodka Market?
Diageo PLC, LVMH Moët Hennessy Louis Vuitton (Belvedere Vodka), Constellation Brands Inc., Brown-Forman and Pernod Ricard are the major companies operating in the Vodka Market.
Which is the fastest growing region in Vodka Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Vodka Market?
In 2023, the North America accounts for the largest market share in the Vodka Market.
Vodka Industry Report
Statistics for the 2023 Vodka market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Vodka analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
