Citrus, owing to its flavor and strong acidity, has become an integral part of alcoholic drinks and is used to provide balance in cocktails. Likewise, citrus alcohol is used both as a base and flavor-additive in alcohol production and live sales counters.
Being available in several flavors - orange, lemon, mandarin, and grapefruit - citrus alcohol is used to improve the flavor profiles of spirits such as rum and gin. The global citrus flavors market has witnessed substantial gains, and the future remains bullish.
Moreover, as citrus inherits the nutritional profile of the fruits it is derived from, the consumption of citrus alcohol bestows several health benefits.
As the per capita consumption of alcohol continues to rise year on year, the demand for citrus alcohol is also expected to follow suit.
Furthermore, the growing trend of craft spirits and the adoption of cost-effective ingredients are propelling the demand for citrus alcohol.
Similarly, rising levels of disposable income, especially in emerging economies, and the subsequent spending on leisure and drinking is poised to give a boost to market growth.
Soaring Demand for Craft Spirits
Over the years, craft spirits have carved a niche for their taste owing to their unique taste and flavor. Small-scale, independent, and traditional brewing firms are brewing their own category of craft spirits in diverse and innovative fruit flavors.
Similarly, brands such as Corona, Bud, and Miller Lite., among others, which already have prominent product lines in the market, are also jumping onto the bandwagon to brew and distill novel craft spirits.
Although the concept of brewing innovative flavors using traditional methods is relatively new, the trend is gaining momentum and is expected to become a standard process across breweries.
Along similar lines, setting up the right pricing range has been identified as a key growth strategy among manufacturers by influencing the consumers’ purchase patterns.
For instance, the weighted average price of beer is approximately US $ 4.7 per liter in Middle East & Africa whereas the spirit around US$ 19.5 per liter, however, the price of wine is approximately US$ 9.7/liter and near US$ 6.6 per liter for other product types of citrus alcohol.
The evident difference between prices of beer, spirits, wine, and other product types of citrus alcohol is asserting market players to identify the right price range to widen their profit margins.
Expansion of Microbreweries
To cater to the growing demand for alcoholic beverages, the number of brewing facilities are proliferating. For instance, North America currently leads the global crafts beer market, accounting for more than 36% of the overall market share.
The region's lucrativeness is attributed to a strong presence of microbreweries, coupled with the availability of a wide variety of craft beer flavors.
The region houses nearly 4500 microbreweries, that produce a relatively small quantity of beer as compared to large-scale corporate breweries.
Furthermore, there are 2,594 brewpubs and 230 regional craft breweries in the region, with the number of operational breweries rising by approximately 12-14% in 2018, as compared to previous years, and the number of microbreweries has been significantly increasing in the US.
On the distribution front, wholesalers & retailers are expecting craft spirits to metamorphose into the most popular alcoholic beverage variant dethroning beer.
Moreover, craft beer currently holds only a tiny share of 12% in the United States alcoholic beverages market, thereby opening growth avenues for manufacturers of citrus alcoholic beverages.
While the quantity continues to grow, the demand for quality drinks is equally high among consumers, especially for pulsating flavors and appetizing drinks.
On this premise, beverages, flavored water, infused beverages, and fusion beverages, among others are experiencing high demand, thus paving way for the wide-scale adoption of citrus alcoholic beverages.
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Regulations on Advertisements Limit Growth
For decades, alcohol advertising has remained a conflict among governments and alcohol brands, owing to cultural- and health-related reasons. Numerous countries across the world have banned advertising alcohol products, thereby limiting brand visibility.
The World Health Organization (WHO) has emphasized the need to control the promotion of alcoholic products across mass mediums such as televisions, newspapers, and banners, citing their negative influence on children and adolescents.
Countries such as France, Norway, Russia, and Ukraine, among others have banned all alcohol advertising on television and billboard.
Such regulations are expected to adversely impact the sales of alcoholic products, thus limiting the growth of the market.
Complying with the norms in the place, market players are gradually opting for other mediums such as the internet, but the high costs associated with digital marketing makes it unviable for small scale organizations.
On the other hand, a high prevalence of alcohol use disorder (AUD), especially in Europe will is a major challenge to the alcohol industry as a whole and this, in turn, reflects in the growth trajectory of the citrus alcohol market.
Globally, 50% of the deaths caused by liver cirrhosis are attributed to alcohol consumption and rising awareness pertaining to the disease is holding back the consumption of alcohol.
North America Citrus Alcohol Market
North America will remain a prominent region for citrus alcohol sales through the assessment period. Akin to the aforementioned regions, the sales of citrus alcohol are driven by growing disposable incomes and alcohol being an integral part of social culture in the region.
The US is also one of the largest producers of beer in the world, recording a production volume of 21 Mn in 2018. Similarly, the nation is also one of the largest consumers of beer and other alcohols, majorly due to the cool climatic conditions. As the demand for innovative flavors prevails high, the demand for citrus alcohol will remain high in the forthcoming years.
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Asia Pacific Citrus Alcohol Market
Asia Pacific is poised to remain the largest regional market for citrus alcohol, capturing over 1/3rd of global market value. The region's lucrativeness is attributed to the surging consumption of alcohol in swiftly urbanizing nations such as Indian and China.
Owing to the large youth population, alcohol consumption in India amounted to about 5.4 billion liters in 2016 and was estimated to reach about 6.5 billion liters by 2020, and is poised to grow in the years to come. The market in the region is also backed by the increasing penetration of foreign liquor brands.
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Europe Citrus Alcohol Market
Europe is projected to remain the second largest region for citrus alcohol, accounting for nearly 30% of market value. The region's lucrativeness is attributed to the high consumption of alcohol, and its significance in culture.
Europe is the largest consumer of alcohol in the world, with France and Russia leading from the front. Furthermore, France is the largest producer of alcohol in the European region, which experiences high demand for fruit- and crop-based alcohol.
On these lines, citrus alcohol, being fruit-based alcohol, is expected to remain highly sought-out among consumers for the years to come.
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Spirit Remains Most Sough-after
By product type, spirit is poised to remain the most sought out product, accounting for more than half of overall market value, while beer will register a tremendous growth in value during the forecast period.
Glass Bottle Remains Most Popular Packaging
On the basis of packaging, glass bottles are anticipated to remain the most popular citrus alcohol packaging type. The segment accounted for a share little below half of the market value in 2020, and is poised to remain the most lucrative segment during the forecast period.
Specialty Stores Impel Majority of Revenue
Based on the sales channel, specialty stores are projected to channel the majority of market revenue. The segment accounted for more than a quarter of market value in 2020 and will remain the largest market through the forecast period owing to the proliferating number of footfalls across the world.
Citrus Alcohol Market Competitive Landscape
Leveraging the growing consumption of alcohol in emerging economies, market players are expanding to nations such as India, Brazil, Mexico, and other European regions. Moreover, acquisitions and partnerships with firms in those regions have been identified as strategies to achieve the same.
On these lines, in March 2017, Asahi Group Holdings Ltd. acquired the business of SABMiller Limited in five European countries and deemed Asahi Breweries Europe Ltd (“ABEL”) as the European subsidiary of Asahi, helping the company to expand in Europe.
Along similar lines, in October 2020, Carlsberg A/S arrived into a contract with Bitburger Braugruppe to procure the Wernesgrüner Brewery, with the brand (Wernesgrüner), in the Vogtland Saxony region, Germany.
Citrus Alcohol Industry Report: Scope
Historical Data Available for
USD Million for value and tons for volume
Key Regions Covered
North America, Latin America, Europe, MEA, Asia Pacific, and Japan
Key Countries Covered
US, Canada, Brazil, Mexico, Argentina, Rest of Latin America, Germany, Italy, France, U.K., Russia, Spain, BENELUX, Poland, Nordic, Rest of Europe, India, China, ASEAN, ANZ, Rest of APEJ, GCC Countries, Turkey, South Africa, Iran, Israel, and Rest of MEA
Key Segments Covered
Product, Packaging, Sales Channel, and Region
Key Companies Profiled
Carlsberg A/S, Diageo PLC, Asahi Group Holdings Ltd., Suntory Holdings Ltd., Halewood International Holdings PLC, Brown-Forman Corporation, Bacardi Ltd., Anheuser-Busch InBev SA/NV, The Coca-Cola Company among others.
Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives
Customization & Pricing
Key Questions Answered by the Report
- What is the citrus alcohol market size?
The global citrus alcohol market is expected to reach a valuation of US$ 2.28 Bn by 2028.
- Which is the largest regional market for citrus alcohol?
Asia Pacific is the largest market for citrus alcohol globally. Growing alcohol consumption in India and China is creating fertile ground for citrus alcohol demand.
- Which are the citrus alcohol companies?
Key players operating in the market include Carlsberg A/S, Diageo PLC, Asahi Group Holdings Ltd., Suntory Holdings Ltd., Halewood International Holdings PLC, Brown-Forman Corporation, Bacardi Ltd., Anheuser-Busch InBev SA/NV, The Coca-Cola Company among others.
- Which is the most popular type of citrus alcohol?
Spirit and beer are the most popular type of citrus alcohol across the world.
- What is the future of the citrus alcohol market?
The citrus alcohol market is expected to grow at a healthy pace through 2028 owing to soaring demand for innovative alcohol flavors.
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- Other Types
- Glass Bottles
- Plastic Bottles
- Modern Trade
- Specialty Stores
- Convenience Stores
- Online Retailers
- Other Retailing Formats
- North America
- Latin America