Why the gin industry will see a boost in the next five years

The global gin sector has been forecast to reach US$22.73 billion by 2030 driven by premium craft, flavour, and mixology trends. Here’s why.

The data, gathered into a category-specific report from Maximise Market Research, revealed that gin has also seen increased demand across the cocktail culture, bars, restaurants, and home consumption.

According to the report findings, “consumers are showing a preference for small-batch, locally sourced, and uniquely flavoured gin brands” and, in terms of botanical flavours, “distillers are experimenting with citrus, spices, floral notes, and exotic botanicals to create distinct flavour profiles”.

The analysts also identified that “the gin-based cocktail scene (for example: gin and tonics, Negronis and Martinis) is driving consumption in bars and home settings” giving the hospitality sector a clear route to gaining sales and riding its success.

Added to this, the research has shown that there has been an expansion of premium and super-premium gins with “high-end, aged, and luxury gin variants are gaining traction among discerning consumers” while health-conscious drinking trends are also starting to take hold within the sector.

For instance, the report analysts found that the trend for wellbeing is now being met by “low-calorie and low-ABV gin options [which] appeal to health-conscious consumers seeking lighter alcoholic beverages”.

The sector has also been enjoying increased market penetration in emerging economies, according to the findings. Examples of this can be seen in the report where it outlines how “markets in Asia-Pacific and Latin America are witnessing a rise in gin consumption due to urbanisation, changing lifestyles, and premiumisation” all having an impact on interest in the category.

Regional insights the analysts shared additionally showed how Europe, is the largest market, led by the UK, Spain, and Germany and has “a strong gin-drinking culture”. While North America along with the rest of the US and Canada are all seeing “rising craft gin popularity and cocktail demand” which has, in turn, propelled gin sales.

Across Asia-Pacific, gin is still an emerging market with “China, Japan, and India driving growth due to rising urban affluence” while gin’s success in Latin America and the Middle East are due to these markets seeing “increasing gin awareness and expanding premium spirit offerings”.

In terms of the biggest industry trends in the gin category and the overall future outlook for gin brand owners, the analysts identified that sustainability in gin production is becoming more prevalent. The report noted how it is seeing “distilleries adopting eco-friendly packaging and organic ingredients”.

Other trends being recognised across global gin are owed to its “crossover with other spirits” and is especially evident by the rise in “hybrid gins infused with whisky, wine, or aged in oak barrels” which are also making an appearance. Added to this, while gin’s mixability is well documented, the trend also being flagged by the new data due to the proliferation of of RTD (ready-to-drink) gin cocktails entering the category, primarily being seen by an influx of new “pre-mixed gin-based drinks gaining popularity” with drinkers who may otherwise have not chosen gin as their spirit of choice.

The final trend highlighted in the report is for the steady climb of experiential marketing boosting the category’s popularity and consumer loyalty and understanding of gin in general. The analysts described how this has been supported by the emergence of more “personalised and custom gin blending experiences” due to more “distilleries offering custom botanical infusions” to appeal to a broader base of consumers.

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