The market for spirits - Germany

1.1 Introduction

The spirits are alcoholic beverages obtainedby distillation of fermented substances. They can be fruits or plants. The distillation process allows to concentrate the alcohol and aromas to create drinks with a more intense flavor and a higher alcohol content than for wine and beer.

• The main segments of this market are whiskies, vodkas, gins, rums and liqueurs.

Spirits account for approximately 25% of total global alcohol consumption. The TCAC of the spirits market is 3.2% from 2021 to 2026. Recently, it is mainly craft spirits or premium offerings that are attracting new consumers, especially because of their authentic nature and, above all, because they are a seal of quality.

In Germany, the TCAC of the spirits market is 2.8% over the same study period, and Germany is the fifth largest consumer of spirits in the world by volume. A shift in German consumers' preferences toward high-quality and especially locally produced products is evident, and organic spirits are experiencing rapid growth in Germany, with a 44% increase in sales between 2016 and 2020. In addition, European regulation is enabling the monitoring of this market by introducing guidelines to harmonize maximum thujone levels in alcoholic beveragences, which in the 1990s enabled the legalization of drinks such as absinthe, which had previously been banned in Germany due to their hallucinogenic effects.

• The most important companies in this market are mainly multinationals such as Pernod Ricard, Beam Suntory & Bacardi.
• However, new companies are also developing in Germany, such as Monkey 47, which was founded in Germany in 2009.

Current trends include the production of local gins, the rise of German single malt whiskies, and experimentation with innovative ingredients and production techniques to meet the needs of demanding German consumers who increasingly prefer authenticity and craftsmanship.