2024
9
Germany Spirits Market Report 2024
2024-05-10T13:02:27+01:00
REPB2997E56_42DB_4E85_A791_C5B387242E8E
2195
172901
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Report
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A balance between low-, no-alcohol, and classic spirit launches will be crucial for long-term brand relevance. Alcohol imitation drinks will bring some fresh insights into the category. A Mintel…

Germany Spirits Market Report 2024

£ 2,195 (Excl.Tax)

Report Summary

Stay ahead of the curve and future-proof your business with Mintel’s Germany Spirits Market Report 2024. Our full report is packed with consumer-led market intelligence, Germany spirits market trends, and consumer behaviours affecting your industry. Get a 360° view of the sector including Germany spirits market size, spirits market share in Germany, and a growth forecast to help you align your business strategy with the needs of your audience.

Below, we’ve handpicked the key insights analysed in the full report and summarised the core topics.

Topics Analysed in this Report

  • A detailed outlook on the spirits Germany market, including market drivers and expert insights.
  • Consumption frequency of spirits in Germany, with lifestyle changes impacting consumption habits.
  • The impact of the cost of living crisis on spirit purchase behaviour.
  • Consumer behaviours, such as alcohol moderation.
  • Consumer attitudes towards spirits, with consumers being caught between indulgence and moderation.
  • Recent product launch activity and innovations.
  • How your business can tap into opportunities to increase your spirits market share in Germany.

An Overview of the Germany Spirits Market

Mintel’s Germany spirits market report shows that white and dark spirits enjoy high penetration and are drunk by one in two adults, reflecting their long history in the German market.

However, 53% of Germans don’t buy spirits, which is a significant increase from 2022, when the number stood at 40%. Looking ahead brands will face challenges caused by Germany’s ageing population, as 16 to 34-year-olds lead the spirits consumption.

The Germany Spirits Market: What Consumers Want and Why

  • Inflation and the Spirits Germany Market: Financial struggles will continue to impact consumer spending in less essential categories. To reduce spending on spirits, 38% of German buyers would buy them on promotion. Thus, a focus on low-key, at-home occasions remains relevant for brands in 2024, as sluggish income growth will continue to see many consumers limit how often they go out to eat or drink.
  • The Alcohol Moderation Trend: In addition, a declining health perception in combination with the alcohol moderation trend is challenging category sales. New takes on low- and no-alcohol spirits with functional ingredients are a promising way to boost Germany spirit market sales. However, the traditional consumer base remains and is likely to respond to premium offers that enhance the treat factor of spirits.

Spirits Germany Market Forecast

  • Despite price increases, value growth in the Germany spirits market is expected to stay in the lower single digits from 2023-28.
  • Moreover, looking ahead, the ongoing health and alcohol moderation trend represents further growth potential for premium and better-for-you offerings. Innovative ethanol substitutes have the potential to revive the spirits category, with the elimination of the negative effects of alcohol.

To learn how to connect with your audience, purchase our Germany Spirits Market Report 2024 in full. Reveal lucrative innovation opportunities to help your business grow during times of financial uncertainty.

Products and Brands Discussed in this Report

Brands: Kin Euphorics, GABA Labs, Polly, White Claw, Pernod Ricard, Diageo, Davide Campari-Milano, Rotkäppchen-Mumm Sektkellereien, Brown-Forman Corporation, Beam Suntory, Bacardi Limited, Mast- -Jägermeister, Henkell & Co. Sektkellereien, Borco-Marken-Import Matthiesen, FRANZI, and many more.

Products: Vodka, gin, seltzers, whisky, rum/sugar-cane-based spirits, fruit brandies/spirits, tequila, mescal, brandy, cognac, other grain spirits, and other types of white or dark spirits.

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Expert Insights on the Spirits Germany Market

This report, written by a Mintel analyst, delivers in-depth commentary and analysis to highlight Germany spirits market trends and add expert context to the numbers.

A balance between low-, no-alcohol, and classic spirit launches will be crucial for long-term brand relevance. Alcohol imitation drinks will bring some fresh insights into the category.

A Mintel Analyst

Table of Contents

  1. EXECUTIVE SUMMARY

    • The five-year outlook for spirits
    • Market context
    • A growing number of Germans are moderating their alcohol intake, broadening growth opportunities for low-/no-alcohol drinks
    • Graph 1: consumers who have limited alcohol consumption in the last 12 months or don’t drink alcohol, % of respondents, by age, 2023
    • The renunciation of alcohol calls for value-adding alternatives
    • Own label to take on a more prominent role in spirits
    • Mintel predicts
    • Modest growth rates for both value and volume sales, with volume sales expected to stagnate
    • Spirit value sales are expected to grow marginally from 2023-28
    • In comparison to value sales, volume sales are expected to flatline from 2023-28
    • Market size and forecast
    • Opportunities
    • Target specific genders and age groups to keep consumers engaged
    • Spirits as a socialising companion for the ‘ordinary’ at-home occasions
    • ‘Healthify’ the spirits category with water and synthetic alcohol
    • The competitive landscape
    • Pernod Ricard still leads the German spirits market, while Campari shows the greatest volume growth
    • Graph 2: company retail value and volume shares of spirits, 2023
  2. MARKET DRIVERS

    • The German economy
    • 2024 is expected to be more challenging than initially predicted
    • Graph 3: key economic data, in real terms, 2019-25
    • Inflation is slowly bouncing back to more-conventional levels
    • Inflation is still the key factor affecting consumers’ finances…
    • …confidence and expenditure
    • Graph 4: financial confidence index, 2022-24
    • Personal health and the economy
    • A growing number of Germans are moderating their alcohol intake, broadening growth opportunities for low-/no-alcohol drinks
    • Graph 5: consumers who have limited alcohol consumption in the last 12 months or don’t drink alcohol, % of respondents, by age, 2023
    • Health/mindful drinking are further driving the alcohol moderation trend
    • The alcohol moderation trend drives innovation in low-/no-alcohol alternatives
    • High commodity prices put manufacturers under pressure as German consumers feel the pinch
    • Low-alcohol/alcohol-free spirit alternatives face tough competition in the realm of alcohol moderation
    • Synthetic alcohol alternatives will ensure relevance of the spirits category by creating a ‘health halo’
    • An ageing society will change medical needs – a forward-looking view focuses on spirits tailored to over-65s
    • Graph 6: population structure by age, 2022-30
    • Health check: German consumers acknowledge rising unhealthiness, impacting spirit sales
    • Graph 7: perception of general health for a person of one’s age, 2021 vs 23
  3. WHAT CONSUMERS WANT AND WHY

    • Usage of white and dark spirits
    • Changing lifestyles are cutting into spirit consumption, highlighting the need to consider life-stage related demands
    • Changing lifestyles are cutting into spirit consumption, highlighting the need to consider life-stage-related demands
    • Graph 8: types of white and dark spirits consumed, 2022 vs 2024
    • Women’s-edition spirits to cater to their palates and preferences
    • Steep increase of non-drinkers calls spirit brands to action
    • Spirit consumption is skewed towards 18-34s
    • Graph 9: consumption of spirits, by age group, 2024
    • Repertoire of types of spirits consumed
    • Graph 10: repertoire of spirit types consumed, by age group, % of respondents, 2024
    • 16-34s have the widest repertoire of spirits types
    • Ways of consuming white and dark spirits
    • One in two adults drink spirits
    • Graph 11: ways white or dark spirits are consumed, 2024
    • Gin and tonic an unmatched pairing
    • Water claims a serious spot as a mixer for spirits
    • Consumption frequency of white and dark spirits
    • A third of spirit drinkers enjoy spirits once a week or more
    • Graph 12: consumption frequency of spirits, by how people describe their household financials, 2024
    • Consumption volumes are declining, but premiumisation can still increase category growth
    • Graph 13: changes in consumption frequency of spirits, by how people describe their household financials, 2024
    • Focus on 16-34 year olds, as they have increased their consumption frequency the most
    • Graph 14: changes in consumption frequency, by age groups, 2024
    • Purchase behaviour of white and dark spirits
    • Spirits have lost their allure, as the sharp decline in buyers shows
    • Focus on young male consumers to ensure category sales
    • Promotions are consumers’ way to keep their spirit consumption up
    • Graph 15: ways to reduce spending on white or dark spirits in the last six months, 2024
    • A marketing focus on ‘ordinary’ at-home occasions remains relevant in 2024
    • Focus on the most loyal consumers with innovative offerings around alcohol moderation
    • Behaviours related to white and dark spirits
    • Take a new approach to social drinking with low-/no-alcohol alternatives
    • Graph 16: behaviours relating to white and dark spirits, 2024
    • Spirits as a socialising companion
    • Use low-/no-alcohol alternatives to lift social pressure on drinking occasions
    • Add mindfulness to create a new value perception
    • Alcohol alternatives can have many faces
    • German brands can learn from the Japanese controversy: “Sake viva!”
    • Attitudes towards white and dark spirits
    • A tussle between quality perception, affordability and treat factor to win over consumers
    • Graph 17: attitudes towards white and dark spirits, 2024
    • Whilst there is increased concern for emotional wellbeing, enjoying the moment is still a top priority
    • The high-quality treat aspects paves the way for premium spirits in magnum bottles…
    • …while a good reputation allows own labels to take their place in the spirit segment
    • Portion-control sizes help consumers moderate their spirit consumption
    • Colours increase engagement and boost the mood
  4. LAUNCH ACTIVITY AND INNOVATION

    • Whisky leads launch activity by a large margin, showing an impressive increase in launches since 2020
    • Graph 18: spirit launches, by sub-category, 2014-23
    • Current trends in the spirit segment
    • Launch activity for spirits is dwindling…
    • Graph 19: spirit launches, by ultimate company, 2021-23
    • …but launches with <20 ABV have seen a rise in 2023
    • …but launches with &lt;20 ABV have seen a rise in 2023
    • Graph 20: spirit launches, by ABV levels, 2021-23
    • No-alcohol options are launched by newcomers as well as traditional brands
    • Diageo aims for ‘Breakthrough Innovation’
    • Diageo goes beyond new product development to shape the future of the beverage industry
    • Pernod Ricard aims to take the lead in the low/no-alcohol movement
    • Lidl democratises spirit consumption with award-winning affordable offerings
    • Own labels struggle to keep their place despite the price advantage
    • Graph 21: spirit launches, branded vs private label, 2021-23
    • Own-label spirits claim space among premium offerings
    • Own labels use regionalism to increase the appeal of their spirits
    • Spirit launches focus on ethical/environmental, as well as positioning claims
    • Graph 22: spirit launches, by top five claims, 2021-23
    • New flavour routes can help to differentiate
    • Spice up your spirit
    • Advertising and marketing activity
    • Jameson puts an international twist on a classic
    • Celebrity status adds a new competitive dimension into the realm of spirits
    • Supporting consumers to enjoy their favourite drink at home, mixed like a pro
  5. MARKET SHARE

    • Pernod Ricard dominates the German spirit market
    • Pernod Ricard still leads the German spirits market by a large margin, while own label continues to lose market share
    • Volume shares show little to no change, with Campari showing greatest volume growth for 2022-23
  6. MARKET SIZE, SEgmentation AND FORECAST

    • Market segmentation for spirits
    • Retail value sales recover from a 2022 drop, while volume sales continue to decline
    • Vodka-based spirits and whiskies have had the greatest increase in value sales from 2022-23
    • Volume sales are declining across the entire spirits category
    • Market forecast for spirits
    • Modest growth rates for both value and volume sales with volume sales expected to stagnate
    • Spirit value sales are expected to grow marginally from 2023-28
    • In comparison to value sales, volume sales are expected to flatline from 2023-28
  7. APPENDIX

    • Appendix – products covered, abbreviations, consumer research methodology and language usage
    • Products covered in this Report
    • Abbreviations
    • Consumer research methodology
    • A note on language
    • Appendix – market size and central forecast methodology
    • Forecast methodology
    • Forecast methodology – fan chart
    • Market size – value
    • Market size – volume
    • Market forecast and prediction intervals – value
    • Market forecast and prediction intervals – volume

About the report

This market report provides in-depth analysis and insight supported by a range of data. At the same time, introductory and top-level content is provided to give you an overview of the issues covered.

The consumer

What They Want. Why They Want It.

The Competitors

Who’s Winning. How To Stay Ahead.

The Market

Size, Segments, Shares And Forecasts: How It All Adds Up.

The Innovations

New Ideas. New Products. New Potential.

The Opportunities

Where The White Space Is. How To Make It Yours.

The Trends

What’s Shaping Demand – Today And Tomorrow.

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Please Note: This is a sample report. All of the figures, graphs, and tables have been redacted. Our reports are available to download in PDF and PPT formats.

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