Absinthe is a spirit made from green anise, sweet fennel and wormwood. It is high in alcoholic content and is gaining popularity as a premium spirit among consumers. Absinthe provides a unique taste to mixed drinks and is consumed as an after-dinner drink due to its bitter anise and herbaceous flavor. The global absinthe market is estimated to be valued at US$ 5.16 Bn in 2024 and is expected to exhibit a CAGR of 3.5% over the forecast period of 2024 to 2031.
Key Takeaways
Key players operating in the global absinthe market are Butterfly Absinthe, Hill's Liquere North America, Hood River Distillers Inc., Jade LiqueursLLC, La Clandestine, La Absinthe, Milan METELKA a.s., Pacific Distillery, Pernod Ricard, Philadelphia Distilling , Teichenn S.A., Doubs Mystique, Teichenne, S.A, LA F E Absinthe, Milan Metelka A.S, St. George Spirits, Duplais Verte, Kubler Absinthe Superieure, Lucid Absinthe Supérieure, and Alandia GmbH Co. KG. The absinthe industry players are focusing on offering higher quality and premium absinthe variants to capitalize on rising demand.
Absinthe Market Size is expected to witness high growth opportunities due to increasing demand from millennial population for premium spirits. Millennial consumers are more affluent and spending large amounts on quality alcoholic beverages. Absinthe producers are expected to leverage this demand by expanding their premium variants portfolio.
Key players in the market are focusing on global expansion to tap the growing demand for absinthe internationally. Production of absinthe was earlier limited to European countries but now players are setting up production facilities and distribution channels in Americas and Asia Pacific regions. Greater brand awareness campaigns and social media promotion will help drive global sales.
Market Drivers
- Rising demand for premium and craft spirits among affluent millennial population is a key market driver. Millennials spend significant amounts on unique alcoholic drinks to experience new flavors.
- Greater global exposure to absinthe through travel, pop culture influences and social media is anticipated to boost demand internationally over the forecast period.
Market Restrains
- Strict regulations and bans on absinthe production and sales in some regions act as a major restraint. Many countries restrict wormwood content due to health concerns.
- Higher price point of premium absinthe varieties compared to conventional spirits restricts mass adoption. Absinthe remains largely a niche premium spirit consumed by affluent populations.
Segment Analysis
The global absinthe market can be segmented based on product type, flavor type, and distribution channel. Under product type, verte absinthe dominates the market as it is the classic absinthe made with traditional herbs like wormwood, anise, fennel, and green anise. Its high alcoholic content and herbal flavor profile make it popular. Louche absinthe follows verte as it has lower thujone content and introduces color change effect when water is added.
Under flavor type, anise flavor dominates as the main components of absinthe- anise and fennel impart this licorice-like flavor. Herbal flavors are also gaining traction due to their varied taste and infusion options.
Offline stores dominate the distribution channel segment as absinthe is majorly consumed along with food in countries where it is legal and popular. However, the online channel is growing rapidly with increasing e-commerce penetration and option to choose from a wide variety available online.
Global Analysis
Europe dominates the with France, Spain, Czech Republic, Switzerland and Germany being the major markets. High per capita consumption, history and cultural acceptance of absinthe drinking make Europe the fastest growing and largest absinthe consuming region.
North America follows Europe with United States emerging as the dominant and fastest growing regional market. Increasing cultural exposure, rising trend of cocktail mixology and legalization of absinthe in most states are driving the North American market.
Asia Pacific is anticipated to be the fastest growing region during the forecast period. Countries like Vietnam, Philippines, Malaysia and Thailand are witnessing rising experimental absinthe usage in cocktails and mixed drinks.
View More Insights @ Absinthe Market
Comments
0 comment