Vodka Market Analysis, Overview, Outlook and Key Players

Vodka is an alcoholic beverage that is produced via distillation. Starches or sugar plants, such as wheat, and vegetables, such as potatoes, are utilised as raw materials in the production of vodka. Vodka is a clear, flavourless beverage that originated in Russia and Poland and takes its name from the Russian word 'voda' (water). Vodka is a popular ingredient in drinks because it's colourless and has a neutral flavour that goes well with any flavour. Because of the increased variety of Vodka available to consumers, the industry is likely to develop significantly. Because of the rise in health consciousness, particularly among the younger generation, consumers today want low-calorie products with excellent components. As a result, the food and beverage business faces a problem in staying current with consumer tastes.

 

Vodka Market

Market Outlook

The global vodka market is being propelled by millennials' growing interest in cocktail culture. Companies are currently experimenting with new vodka cocktail flavours, which is encouraging consumers to try more expensive alcoholic beverages. To keep up with these quick shifts in consumer tastes, key players are developing new products. For example, Pernod Ricard released L'Orbe, a Caviar-infused vodka, in 2019. In addition, Hilton Head Distillery debuted 'Aermoor,' a vodka with a birthday cake flavour.

Due to expanding population, fast urbanisation, and rising per capita income in the area, Asia-Pacific accounted for the biggest revenue rise in 2018. India's per capita income climbed by 10% in 2019, according to the World Bank. Furthermore, the region's restaurants and bars have profited from increased alcohol use and demand for quality vodka. For example, Pernod Ricard, a French alcoholic beverage firm, saw a 12 percent increase in alcohol sales in Asia Pacific in 2019, thanks to the success of its vodka brand 'Absolut' and the expansion of local whiskey brand 'Seagram' in the region. In 2019, alcohol sales increased by 20% in China and India, respectively.

Russia is the world leader in per capita vodka consumption in Europe. However, Russia's alcohol use is currently declining. According to the World Health Organization, alcohol use in Russia has decreased by 43% between 2003 and 2016, thanks to a growing trend toward healthier living and government enforcement of minimum pricing. For example, in 2011, the Russian government limited the sale of retail alcohol and imposed stringent restrictions on alcohol promotion in the media.

Key Players

Belvedere, Brown-Forman, Diageo, Gruppo Campari, Pernod Ricard, Russian Standard, Bacardi, Central European Distribution, Constellation Spirits, Tito's Handmade, Grand Teton, and Deep Eddy are some of the major companies in the global vodka business.