Global demand for citrus alcohol market is set to hover at nearly 5 per cent growth rate, as growing preference for craft beer, and rising alcohol consumption create fertile ground. A recent study by ESOMAR certified market research and consulting firm, Market Research Insights, analysed citrus alcohol growth in over 20 countries, building a holistic and comprehensive analysis of the market.
Increasing inclination among consumers towards craft spirits, owing to their unique and subjective taste is another key factor driving sales. Study opines that proliferating number of breweries across the world will drive demand in the long run.
The COVID-19 impact on the market will create short-term challenges through 2021-end, with steady recovery expected from 2022.
- Spirit will remain the largest selling category, capturing over 50 per cent market share.
- Glass bottles will hold nearly half of market value, owing to safety and minimal risk of leakage.
- Based on sales channel, specialty stores accounted for over one-fourth of market value in 2020 and will remain the most lucrative channel.
- Asia Pacific will remain the largest regional market for citrus alcohol, backed by the presence of a large young population base with high spending on alcoholic beverages.
- Europe and North America will collectively account for nearly 50 per cent market share, being the largest producers and consumers of alcohol.
The outbreak of COVID-19 has impacted operations in the food and beverage sector, thus creating a downfall in the volume produced in the first and second quarters of 2020. Moreover, supply-side difficulties such as hindered distribution network and closure of sales channels.
Furthermore, altered consumer priorities during the lockdown and high demand for essential products, while distribution and sales of non-essentials, including alcoholic beverages, have been deprioritized. On the back of these facets, the growth trajectory of the citrus alcohol market will experience fluctuations during the pandemic.