(Plastic & Glass) & Cans), By Distribution Channel (Offline (=Vending machines, HyperMarket - Forecast(2024 - 2030)

Fruit & Herb Liqueur Market Overview

Fruit & Herb Liqueur Market size is estimated to reach $23.4 billion by 2027, growing at a CAGR of 3.1% during the forecast period 2022-2027. Fruit & herb liqueur is a renowned sub-category of the liqueur family that is fabricated chiefly from fruit and herb ingredients and is known for its sweet taste. As compared to normal ones, fruit liqueurs have a lower shelf life and in order to prepare these flavored liquors, numerous fruit and mountain herbs such as orange, blackcurrants, limoncello, passion fruit, mint extract, basil, thyme, oregano, and many others are used. Blending is the most frequent method used to prepare fruit and herb liqueurs. This method involves the blending of flavoring, coloring agents, sugars, and stabilizers like modified starch with a neutral spirit. With an aim to improve the texture, fruit liqueurs are enhanced by using co-distillation and infusion methods. Fruit liqueurs prepared from citric fruit extends several health benefits such reduction of kidney stone because of the presence of sodium citrate in them. These drinks are a safer option than standard alcohol; consequently, they are more desired. Rising popularity among youngsters because of sweet taste, rising western influence in developing countries, rising disposable incomes, bettering infrastructure in low-income countries, growing nightlife trends, rapid urbanization, and availability of a variety of blended flavors are factors set to drive the growth of the Fruit & Herb Liqueur Market for the period 2022-2027.

Report Coverage

The report: “Fruit & Herb Liqueur Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Fruit & Herb Liqueur Market.

Key Takeaways

• Geographically, the North America Fruit & Herb Liqueur Market accounted for the highest revenue share in 2021. The growth is owing to high purchasing power in the hands of consumers, well-established infrastructure, high urbanization, and a high number of bars and clubs.
• Swift modernization, innovative flavors, increasing spending on research and development, rising western influence in low-income countries, re-entry of hospitality venues post Covid-19, and rising trend of visiting bars are said to be preeminent factors driving the growth of the Fruit & Herb Liqueur Market. 
• Health complications associated with immoderate consumption, rising inflation rates, and shortage of raw materials because of the harsh restriction imposed to curb the virus spread are said to reduce the market growth.
• Detailed analysis of the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Fruit & Herb Liqueur Market report.

Fruit & Herb Liqueur Market Share, By Region (%) in 2021

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Fruit & Herb Liqueur Market Segment Analysis-By Packaging

The Fruit & Herb Liqueur Market based on the packaging can be further segmented into Bottles (Plastic and Glass) and Cans. The bottles segment held the largest share in 2021. The growth is owing to their sustainability, versatility, and cost-effective nature. However, growing environmental concerns and poor recyclability have forced manufacturers to look for other options. Consequently, the aluminum cans segment is estimated to be the fastest-growing segment with a CAGR of 4.6% over the forecast period 2022-2027. This growth is owing to its cost-effective nature as compared to other mediums of packaging. Their lightweight nature and compact design help companies save transportation and material costs. Unlike PET bottles, aluminum cans are recyclable in nature and can be used to fabricate new cans to store drinks. An extremely thin layer of aluminum is used in their production therefore these cans are of lightweight nature. Besides, sustainability, aluminum preserves the intactness of the drink by extending better options to safeguard the beverage from bacterial contamination. On another hand, appealing aesthetics, durability, and top-of-the-line printing options are other prominent factors behind the market expansion.

Fruit & Herb Liqueur Market Segment Analysis-By Distribution Channel

The Fruit & Herb Liqueur Market based on distribution channel can be further segmented into Offline (=Vending machines, Hypermarkets/Supermarkets, Convenience stores, wine shops, and other retail outlets), On-trade facilities (=Restaurants, Hotels, Bars, and others), and Online platforms. The offline segment held the largest share in 2021. The growth is owing to their widespread presence regardless of geographical location “Whether the area is rural or metropolitan?”. The escalating presence of offline distribution channels like convenience stores has aided the market. For example, 7 eleven (convenience stores), which initially started in the U.S., have franchises in more than 15 countries across the globe. In addition to that, expanding presence of modern retail outlets like supermarkets have drawn a following among busy shoppers by offering various benefits and conveniences like alluring discount offers, one-stop solution, and sales support. Furthermore, Online shopping is a contemporary concept and has been thrust into the limelight in recent years. Therefore, the online segment is estimated to be the fastest-growing with a CAGR of 4.9% over the forecast period 2022-2027. This growth is owing to the rising work from home trend, soaring smartphone users, all-weather access to the internet, top-notch marketing strategies (jaw-dropping discount games for winning free products), time-saving, and doorstep delivery.

Fruit & Herb Liqueur Market Segment Analysis-By Geography

The Fruit & Herb Liqueur Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held the largest share with 42% of the overall market in 2021. The growth in this segment is owing to the factors such as rising health awareness among people. People especially millennials are shifting toward fruit and herb liqueurs as they exhibit only a little quantity of alcohol. Moreover, a well-established retail network, high purchasing power, high urbanization rates, an overwhelming number of pubs, and a rising trend of nightlife are prominent factors aiding the aforementioned market in the said segment. However, Asia-Pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to augmenting western influence among Asian nations. The rising economies of India and China have a huge role in this drastic shift in consumer buying behavior. In addition to that, rising FDIs, growing government spending to improve infrastructure, the rising middle-class population, the broadening trend of visiting bars and nightclubs among the younger generation, and swift urbanization is driving the regional demand.

Fruit & Herb Liqueur Market Drivers

Escalating health illnesses like kidney stones, innovative flavors, and growing disposable incomes are anticipated to boost market demand.

Owing to sedentary habits, poor ingestion, obesity, and immoderate exercise, the complications like kidney stones are all set to reach epidemic proportions. Every year India records more than 1 million cases. Moreover, according to the National Center of Biotechnology Information, in the U.S., approximately 11 percent (men) and 5 to 6 percent (women) develop kidney stones once in their lives. Therefore, considering the proficiency of liqueurs prepared from citric fruit in reducing the risk of such complications, the overall demand is increasing. In addition to that rising GDP per capita incomes in major developing nations like Brazil, India, South Africa, Indonesia, and China have aided the market. From $5,624 in 2020, South Africa's GDP per capita income reached $6,861 in 2021. Nevertheless, the figure is anticipated to reach $7,081 in 2022. In addition to that, with a $2,000 hike, China’s GDP per capita income crossed the $12,000 mark last year. These factors are anticipated to play a key role in the market growth. Moreover, the availability of plenty of innovative flavors has strengthened the market demand.

Broadening urbanization and rising business of bars and nightclubs globally are expected to boost market demand.

The cities like Miami (U.S.), New York (U.S.), Madrid (Spain), Tokyo (Japan), Montreal (Canada), Rio de Janeiro (Brazil), London, and Hong Kong are known worldwide for their exuberant nightlife. These cities are home to bustling casinos, buzzing clubs, and jazz bars. In 2019, according to the British Beer and Pub Association (BBPA), there were 47,200 public houses in the UK. 23,400 of these pubs were independent, 13,900 are owned by Pub Companies, and 9,900 were owned by breweries. In 2020, according to ONS data, there were 58 pubs per 100,000 people in the UK. Regionally, there was some variation. The South West had 75 pubs per 100,000 people, whilst London had 40. Nevertheless, according to the On The Line publication, the U.S. is home to more than 62000 bars and nightclubs as of 2022. In addition to that soaring migration of people to cities is anticipated to aid the liqueur businesses. 

Fruit & Herb Liqueur Global Market Challenges

Staggering inflation rates and a heightened gap between demand and supply are anticipated to hamper market growth.

Countries are battling the worst inflation and unemployment rates in this post-covid-19 world. Inflation rates are sky-rocketing and putting an extra burden on consumers who are already reeling under the weight of COVID-19. The U.S. is facing 40 years' highest inflation rates; whereas, underdeveloped nations like Pakistan and Sri Lanka are going through serious financial turmoil. Also, growing unemployment rates is another factor keeping people from making unnecessary purchases. According to a CMIE report published in 2022, with a 1.09 percent hike unemployment rate of metropolitan areas in India reached 9.3 percent; similarly, rural areas witness a hike of 0.84 percent as the unemployment rate surged from 6.44 percent to 7.28 percent. With these kinds of stats, it is evident that the purchase of luxury goods like liqueur is difficult in not only emerging nations but in developed nations as well impeding the overall market growth.

Fruit & Herb Liqueur Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Fruit & Herb Liqueur market top 10 companies include:

1. Chartreuse Liqueur
2. Lzarra Liqueur
3. Stillspirits
4.  Mast-Jägermeister SE
5. Samuel Willard’s
6. Killepitsch Liqueur
7. Yomeishu SG
8. Becherovka Liqueur
9. Wolfenbüttel
10. The Whisky Exchange

Recent Developments

• On March 29, 2022, Aldi (a Germany-based supermarket chain) announced the launch of two brand new watermelon and Lime gin spirits. The gin liqueurs are available in both physical and online stores; moreover, they’re being promoted as summer cocktails. The price of both the drinks stands at around 10.99 pounds.
• On February 2, 2022, Wolfenbüttel, Germany-based liquor company “Mast-Jägermeister” announced that the company has bought a stake in liquor brand Teremana Tequilla (owned by renowned Hollywood actor The Rock). The financials of the transaction were not revealed by the company. Nevertheless, this relationship is anticipated to boost international sales of Teremana.
• In April 2021, Diageo Plc acquired the spirits-based ready-to-drink brand, Loyal 9 Cocktails, from Sons of Liberty Spirits Company.

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