Bourbon Could Be Worth $12.8bn By 2031
The Bourbon market was found to be worth US$7.8 billion in 2021, and is estimated to rise by value to US$12.8bn by 2031, after increasing by a compound annual growth rate (CAGR) of 5%.
Editor's Note: It's always nice to see that bourbon has room to grow and that industry players are confident of its future. But is it growing for the right reasons?
It's not surprising to see wheated bourbon leading the pack but it does make me ask the question of whether that's because it's better or simply because Maker's Mark is an industry legend and people fawn over Pappy and Pappy Junior (a.k.a. Weller.) What does worry me is the fact that finished bourbons are growing at such a fast rate. Is that a sign of innovation and consumer-led product development or simply a means for distilleries to put out new products quickly or disguise mediocre whiskey? Sound off in the comments, and let us know what you think.
The global Bourbon market is predicted to grow by 5% between 2022 and 2031, according to new research.
Brown-Forman, Beam Suntory, Bacardi, Heaven Hill and Sazerac were included in the research
Allied Market Research's has released its latest report, titled Global Bourbon Spirits Market by Type (Wheated, Barrel Finished, Barrel Select, and Others), by ABV (40-45%, 46-55%, and 56% and Above) and by Distribution Channel (On-trade and Off-trade), Global Opportunity Analysis and Industry Forecast, 2022-2031.
The key players included in the report include Brown-Forman, Beam Suntory, Bacardi, Heaven Hills and Sazerac, plus more.
The Bourbon market was found to be worth US$7.8 billion in 2021, and is estimated to rise by value to US$12.8bn by 2031, after increasing by a compound annual growth rate (CAGR) of 5%.
The main drivers of the growth are considered to be a rise in spirits tourism, wide utilisation of spirits in premium cocktails, and a surge in demand for premium ready-to-drink (RTD) products and luxury spirits.
While the wheated Bourbon spirits segment was found to dominate the market in 2021, accounting for more than a third of its share, it is also expected to front the marketing during the forecast period of 2022-2031.
The barrel-finished segment is expected to witness the fastest CAGR growth of 6.1% during the period, due to the rise in the demand for triple-distilled and blended spirits among consumers.
When looking at alcohol strength, the research company found Bourbons on the higher end of the ABV scale, resting between 46%-55% ABV, claimed two-fifths of the market share and are also expected to dominate in the forecast period.
The 56% ABV-and-above segment is also projected to see the fastest CAGR growth of 10.3% during the forecast period, owing to the increase in demand for high-end premium or luxury Bourbons as consumers choose quality liquids...