White Spirits Market

Global White Spirits Market Overview

White Spirits Market Size was valued at USD 45.5 billion in 2023. The White Spirits industry is projected to grow from USD 47.59 Billion in 2024 to USD 62.26 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 4.58% during the forecast period (2024 - 2032). The Income per capita available to spend rising and Consumers’ ability to purchase goods is improving are the key market drivers enhancing market growth.

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

White Spirits Market Trends

• White Spirit Growth Potential Supported by the Paints and Coatings industry’s market growth

The growing market for white spirits is primarily driven by the burgeoning paints and coatings industry and the rising demand for cleaning and degreasing solvents. The demand for synthetic paint thinner has increased in developing regions due to the escalating activity in the construction sector and the expanding vehicle industry. Moreover, this has raised demand for white spirits. In addition, factors including the rising need for oil exploration, a change in demographics, and improved worldwide economic conditions are anticipated to propel the white spirits market. Also, there may be excellent growth potential for the white spirit business globally shortly due to the growing customer preferences for low aromatic white spirits.

Furthermore, the effects on one’s health from consuming or being exposed to white spirits also rely on variables, including the dose or volume of exposure and the length of time. Constant consumption causes drowsiness and stomach ache. Long-term exposure also causes pneumonitis and cardiac issues (severe lung damage). White spirit vapor use also carries the danger of headache, shortness of breath, and nose and throat irritation. These elements will limit the market’s expansion for white spirits worldwide.

Additionally, it is projected that using white spirits in the paint industry would create new opportunities in the white spirits market. Adding white spirit reduces the paint’s viscosity and speeds up the drying process. White spirit is another important factor that boosts the demand of the market and is consequently anticipated to offer new growth opportunities during the forecast period. It helps to aid the smoothness of paint products. White spirit is also used to manufacture of wood preservation goods, grease removers, corrosion inhibitors for metalworking fluids, and automobile cleaning and polishing agents. It is projected that new possibilities will arise during the forecast period due to all these factors increasing market CAGR globally in recent years.  

However, there have been significant advances in the technology innovations to cater to the demand. For instance, the health risk linked to prolonged exposure to white spirits restricts the expansion of the world white spirits business and increases white Spirits market revenue.

White Spirits Market Segment Insights

White Spirits Product Type Insights

The white spirits market segmentation, based on type, includes rum, vodka, gin, tequila, and others. First, with share of 60.4%, vodka was the most popular product category in 2018. The market for domestic luxury vodkas has grown, especially among millennials and women, as vodka consumption has increased in nations like the U.S. and Russia. The item is also promoted as a stress reliever and a skin and hair enhancer. Moreover, it eases digestion and lowers blood pressure, and increases Wood Vinegar market revenue.  Gin customers now have more options because to significant brand introductions by well-known white spirits manufacturers.  Gordon’s Premium Pink Gin brand was introduced by Diageo Brands B.V. in September 2020.

April 2020: In April 2020, respectively, Charles Tanqueray & Co. introduced Tanqueray’s Lovage gin and Tanqueray’s Flor de Sevilla, an orange essence beverage.

May 2021:  Eight new powder coating production lines and an enlarged Powder Coatings Technology Center will be completed as part of a US$13 million investment in PPG’s Jiading, China, paint, and coatings facility by May 2021.

White Spirits Distribution Channel Insights

The white spirits market data has been divided into Food Retail and Food Service. The food retail distribution channel brought in USD 45.5 billion in revenue in 2022 and is anticipated to expand significantly due to rising sales of gin and vodka, which are linked to increase in cocktail consumption. The growth is attributed to rising consumer per capita income and adopting of a luxury lifestyle.

Figure 1: White Spirits by Service, 2022 & 2030 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

Additionally, food service distribution is anticipated to rise at a CAGR of 4.58% from 2022 to 2030 due to the rising popularity of drinking at home. Generations X and Y are predicted to consume more in the following years, which will significantly contribute to the expansion of the food service industry.

The second fastest-growing segment in the white spirits industry is food service. The personal service and accessibility of a wide range of products boost the segment's revenue growth.

White Spirits Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Europe white spirits market accounted for USD 45.5 billion in 2022 and is expected to exhibit a significant CAGR growth during the study period. This is attributed to the growing incidence of wood vinegar products such as mineral turpentine, turpentine substitute, petroleum spirits, and solvent naphtha and an aging population across the region.

Further, the significant countries studied in the market report are The U.S., Canada, Germany, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: WHITE SPIRITS MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database, and Analyst Review

North American white spirits market accounts for the second-largest market share due to the availability of white spirits has many mineral advantages, including building strong bones and controlling body fluids. Further, the German white spirits market held the largest market share, and the UK white spirits market was the fastest-growing market in the European region.

The Asia-Pacific white spirits Market is expected to grow at the fastest CAGR from 2022 to 2030. This is due to increased rates of white spirits products. The vast growth in the region is attributable to an older population that is growing along with rising spirits concerns and public awareness that have increased improvement of minerals quality use in the Asia Pacific region throughout the forecast period. Moreover, China's white spirits market held the largest market share, and the Indian white spirits market was the fastest-growing market in the Asia-Pacific region.

For instance, the Indian white spirits market is the favored destination for white spirits production. United Spirits Limited (USL) is the largest Indian spirits company, palm toddy in Kerala, rice beer or wine in the North East, mahua in central India, and cashew feni. It supports healthy bone growth and controls body fluids. Moreover, it makes reduced cholesterol stronger and promotes excellent spirits growth. As per the data cited in the white spirits companies 2022-21 published by the white spirits producer Association in July 2022, Singapore is ranked in 2nd position, Japan at 3rd, India at 10th, South Korea at 14th, and China at 33rd out of the top 46 international white spirits production destinations. Hence, Asia-Pacific is anticipated to register the highest growth rate over the forecast period from 2022–2030.

White Spirits Key Market Players & Competitive Insights

Major market players are spending a lot of money on R&D to increase their product lines, which will help the white spirits market grow even more. Market participants are also taking various strategic initiatives to grow their worldwide footprint, with key market developments such as new product launches, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations. Competitors in the white spirits industry must offer cost-effective items to expand and survive in an increasingly competitive and rising market environment.

One of the primary business strategies manufacturing in the white spirits industry to benefit clients and expand the market sector is to manufacture locally to reduce operating costs. In recent years, white spirits industry has provided medicine with some of the most significant benefit. The white spirits market major players such as Bacardi Limited (Bermuda), Constellation Brands Inc.(US), Distell Group Limited (South Africa), Diageo PLC (UK), Pernod Ricard (France), and others are working on expanding the market demand by investing in research and development activities.

Bacardi Limited is headquartered in Hamilton, Bermuda, and has a board of directors led by the founder’s great-great grandson, Facundo L. Bacardí, the board’s chairman. In Feb 2023, the biggest privately held spirits firm in the world, Bacardi Limited, released its fourth annual Bacardi Cocktail Trends Report, which projects significant trends that will affect cocktail consumption and the spirits industry in 2023.

Also, Beer, wine, and spirits are produced and sold in America by Constellation Brands, Inc. Constellation, a Fortune 500 company, is the largest beer importer in the US regarding sales and the third-highest market share (7.4 percent) among all significant beer producers.  It has financial interests in both medical and recreational marijuana. In Feb 2022, Constellation Brands, Inc. (NYSE: STZ), a leading beverage alcohol company, announced the appointment of Ricardo Dalmas as Senior Vice President, Strategy, Insights, and Analytics (SIA).

Key Companies in the white spirits market include

• Bacardi Limited (Bermuda)
• The Brown–Forman Corporation (US)
• Constellation Brands Inc.(US)
• Distell Group Limited (South Africa)
• Suntory Beverage & Food Limited (Japan)
• Alberta Distillers Limited (Canada)
• William Grant & Sons (UK)
• Diageo PLC (UK)
• COTT Corporation (Canada)
• Pernod Ricard (France)
• San Miguel Corporation (Philippines)

White Spirits Industry Developments

Feb 2021:  White spirits and solvents were added to the Abu Dhabi National Oil Company’s (ADNOC) inventory of refined products. They Allowed ADNOC to increase the value of Abu Dhabi's natural resources while generating goods that the regional economy might need. ADNOC Refinery in Ruwais produces solvents and white spirits. These products are used to create goods, including inks, adhesives, varnish, cleaning agents, and paint thinners, among other products, with various domestic and commercial applications.

Feb 2020: Pernod Ricard today announces a significant move to leverage further the strong growth of its premium American whiskey portfolio, The American Whiskey Collective, with a €238 million ($250 million) investment over five years to build a state-of-the-art, carbon-neutral distillery, and aging warehouses in Marion County, Kentucky, for its fast-growing Jefferson’s Bourbon brand.

White Spirits Market Segmentation

White Spirits Product Type Outlook

• Rum
• Vodka
• Gin
• Tequila
• Others

White Spirits Distribution Channel Outlook

• Food Retail
• Food Service

White Spirits Regional Outlook

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • UK
  • Italy
  • Spain
  • Rest of Europe
• Asia-Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Australia
  • Rest of Asia-Pacific
  •  
• Rest of the World
  • Middle East
  • Africa
  • Latin America