GLOBAL – Locally produced premium gins are exploiting growth opportunities in non-traditional gin markets, such as India and Brazil as the gin boom cools in established markets, according to a new report by IWSR.

IWSR says that Spain, the world’s leading consumer of most gin per capita, and the UK, the fourth in the same ranking, have now reached ‘peak gin’, with volume consumption plateauing.

The drinks market analysis firm however notes that both markets are set to remain important sources of innovation and value for the category in the future.

In the report, IWSR noted that as flavor diversification has become a major trend driving gin for established brands, a new wave of locally produced premium gins is also exploiting growth opportunities in non-traditional gin markets, such as India and Brazil.

IWSR forecasts the total UK gin market to decline at a CAGR of 4% between 2021 and 2026, While Spain’s market is expected to stage a partial recovery, but with a relatively lackluster CAGR of 2% over the five-year period.

In Spain, the flavors trend is set to be extended at least in the short term by the emergence of the ‘exotica’ (sweet spice and cinnamon) flavor of the moment in the influential Andalucian market.

Meanwhile, the UK gin market reached a turning point in 2021, when volumes declined for the first time in a decade despite the continued momentum behind flavored products, with consumers migrating into other flavored products, including vodkas, the report confirms.

With regards to IWSR data, 2021 was another great year for gin in Brazil, which had volumes up by nearly 10 times since 2017, underpinned by both at-home and on-premise consumption occasions, Luciano Anavi, a market analyst at IWSR points out.

According to IWSR forecasts, global volumes of standard-and-above priced gins are poised to grow at a CAGR of 5% between 2021 and 2026.

While volume growth in the three largest gin markets of the US, UK, and Spain will be subdued, strong gains are expected in other top 20 markets.

IWSR points out that it expects double-digit CAGR volume growth in markets including Canada, Japan, South Africa, and India from 2021 to 2026, alongside CAGR volume growth of just under 10% in markets such as Italy, Brazil, and Australia.

Additionally, the Indian craft category is expected to go from strength to strength, with the strong likelihood of more brands and more investment, from large and small players.

According to Anavi, the growth is expected since gin has become an attractive category for experimentation and entrepreneurship, with craft products still booming and flavors being launched regularly to attract consumers looking for new and original experiences.

Echoing the report findings, Campari Group CMO Julka Villa says that moving forward he sees two main areas competing in the major consumer trends relating to gin.

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