The spirits market - Italy (2024)

1.2 The global market

The size of the alcohol market is estimated at US$***.** billion in **** and is expected to reach US$***.** billion by ****, growing at a compound annual growth rate (***). One of the significant factors for the high growth of the alcohol market during the forecast period is considered to be the increase in demand for premium alcoholic beverages due to the increase in consumer purchasing power. Other important factors, such as the increase in the alcohol consumer base, especially among young people, the strengthening of the distribution network adopted by alcohol producers, and the adoption of Western culture in developing countries, are also contributing to the growth of the market.

Global spirits market value World, ****-****, in US$ billion MondorIntelligence

In addition, major market players are actively engaging in various marketing activities to create a good reputation among consumers. For example, companies are launching marketing campaigns focused on raising awareness of responsible alcohol consumption.

Increased demand for premium alcoholic beverages and consumer awareness of taste, ingredients, quality, etc., are some of the main factors that have increased the demand for craft spirits in recent years. A growing number of consumers are looking for new and more exciting offerings than the usual options, thus ...

1.3 The European market

The European spirits market is expected to reach €**.* billion by ****, up from €**.* billion in ****, marking a modest annual growth rate of *.* percent. Since ****, the market has seen a steady increase of *.* percent per year.

European spirits market value Europe, ****-****, in US$ billion ReportLinker

Spirits consumption in Europe is expected to rise to *.* billion by ****, up from *.* billion in ****, with an average annual growth of *.* percent. Since ****, demand has increased by *.* percent each year. European distillate consumption Europe, ****-****, in US$ billion ReportLinker

In ****, the United Kingdom and France stand out as the largest European exporters of distilled spirits, with exports of US$*.* billion and US$*.** billion, respectively. Italy follows with USD *.** billion, followed by Germany (***). These figures highlight the clear superiority of the United Kingdom and France in the European distilled spirits market, while the other countries, despite having lower export values, contribute significantly to the continent's total exports. Major European distillate exporters Europe, ****, in US$ billion UNComtrade

In ****, Germany is the largest European importer of distilled spirits with a value of US$*.** billion, followed by France with US$*.** billion and the United Kingdom with US$*.** billion. The Netherlands and Spain import USD *.** billion and USD *.** billion, respectively. Italy, with ...

1.4 The Italian market

The Italian market is forecast to increase from *.** billion euros in **** to *.** billion euros in ****, with an overall growth of *.* percent in five years, at a CAGR of *.** percent, the same as the European market. Italian distilled spirits market forecast Italy, ****-****, in € billion Company Register, Linker Report, Businesscoot Processing

Between **** and ****, the turnover of Italian companies operating in distillation, rectification and blending of spirits grew by ** percent, from €*.** billion to €*.** billion. Despite a decrease in ****, probably due to the pandemic, the industry showed significant recovery in the following two years. In ****, turnover increased ** percent from the previous year to *.** billion euros, and continued to grow to *.** billion euros in ****.

Turnover of companies engaged in distillation, rectification and blending of spirits Italy, ****-****, in billion € Istat, Companies Register

Between **** and ****, the domestic value of distillate production sold in Italy increased by ** percent, from €*.** billion to €*.** billion. After a decline in **** to *.** billion euros, the sector showed a remarkable recovery, reaching *.** billion euros in ****. Although there was a slight decrease in ****, the value rebounded, holding steady at *.** billion euros in **** and peaking at *.** billion euros in ****. National value of distillate production sold Italy, ****-****, in billion € Istat

The categories present in the ...

1.5 Imports and Exports

Under HS Code **** - Undenatured ethyl alcohol with an alcohol content of less than ** percent by volume; spirits, liqueurs and other spirituous beverages, between **** and ****, Italy saw a significant increase in both exports and imports of distilled spirits. Exports grew by ** percent from US$*,*** million in **** to US$*,*** million in ****. Imports, on the other hand, increased by ** percent, from USD *** million to USD *,*** million over the same period.

The coverage rate, which measures the ratio of exports to imports, has remained relatively high, although it has shown a slight decline in recent years. From **** to ****, the rate increased from *.** to *.**, indicating that exports were more than double imports. However, in **** and ****, the rate dropped to *.**, suggesting faster growth of imports than exports. This could reflect higher domestic demand for Italian distillates.

Imports, Exports and Distillate Coverage Rate Italy, ****-****, in US$ million UNComtrade

In ****, Germany was the main recipient of Italian distillate exports, accounting for **.** percent of the total. This was followed by the United States with **.** percent and the United Kingdom with *.** percent. France imported *.** percent, while Spain, Belgium and Switzerland accounted for *.** percent, *.** percent and *.** percent of Italian exports, respectively. The other countries together made up **.** percent of exports. ...

1.6 Inflation suffered by the sector

The distilled spirits sector in Italy has faced inflation by adopting various strategies to cope with rising costs and maintain competitiveness. Rising prices of raw materials, production and logistics have forced many companies to adjust the prices of their products upward. This price increase has been reflected both on store shelves and in bars, making alcoholic beverages more expensive for consumers. To counter this, some companies have sought to reduce operating and production costs by streamlining processes and adopting more efficient technologies. Reducing staff and seeking cheaper solutions have been other strategies deployed to contain expenses. Faced with an increasingly difficult domestic market, many distilleries focused on innovation, introducing new product lines or variants that could attract new market segments. Diversifying offerings became crucial, especially by launching lower-end products to reach a wider audience. Marketing and promotional activities played a key role in keeping consumers interested and retaining their loyalty. Targeted advertising campaigns, tasting events and special offers have become essential tools for companies in the industry. In addition, many producers have increased exports to international markets less affected by inflation, seeking to offset declining domestic sales with increased sales abroad. Despite the difficulties, the quality and craftsmanship of Italian products ...

2.1 Overview of demand

Between **** and ****, the average household expenditure item for distilled spirits in Italy showed a gradual increase. In ****, the average expenditure was *.** euros, decreasing slightly to *.** euros in **** and remaining stable in ****. Starting in ****, spending began to rise, reaching *.** euros and continuing to increase in **** to *.** euros. In ****, average household spending on distilled spirits rose to *.** euros, marking an overall increase of ** percent compared to ****.

Average household expenditure item for distilled spirits Italy, ****-****, in current &euro Istat

Between **** and ****, national per capita spending on distilled spirits in Italy increased steadily. In ****, spending was €**.**, rising to €**.** in **** and €**.** in ****. In ****, spending reached **.** euros, continuing to rise to **.** euros in **** and **.** euros in ****. In ****, per capita spending reached **.** euros. This represents an overall increase of **.* percent from **** to ****. National per-capita spending on distilled spirits Italy, ****-****, in current &euro ReportLinker

Between **** and ****, distillate production in Italy, measured in millions of liters of pure alcohol, showed significant growth. In ****, production was **.* million liters, falling to **.* million liters in ****. From **** onward, a significant growth trend is observed: ***.* million liters in ****, ***.* million liters in ****, ***.* million liters in ****, and a peak of ***.* million liters in ****. This represents an overall increase of **.* percent from **** to ****. Production realized in ...

2.2 Geographical distribution of demand

In ****, the average monthly household expenditure on distilled spirits in Italy shows significant variations geographically. Households in the Northeast and Northwest record the highest expenditure, with *.** euros each. In the Center, the average expenditure falls to *.** euros, while in the regions of the South and Islands it stands at *.** euros. These data indicate a greater propensity to spend on distilled spirits in northern regions than in central and southern regions.

2.3 Demand drivers

In ****, the consumption of bitters among people aged ** years and older in Italy varies significantly among different age groups. Data in thousands indicate that the **-** age group has the largest number of consumers, with *,*** people. This is followed by the age groups **-** years (***) have the lowest percentages of consumption.

People aged ** and older who consume bitters Italy, ****, in thousands, per *** people with the same characteristics Istat

In ****, liquor consumption in Italy among people aged ** years and older varies widely across age groups. Data in thousands show that the **-** age group has the largest number of consumers, with *,*** people, followed by the **-** age group (***) show the lowest percentages of consumption. People aged ** and older who consume liquor Italy, ****, in thousands, per *** people with the same characteristics Istat

In ****, the national breakdown of beverage spending in Italy shows a relatively balanced distribution among different categories. Water accounts for ** percent of total spending, followed by wine and soft drinks, both at ** percent. Beer makes up ** percent of spending, while other alcoholic beverages account for ** percent. Sparkling wines have the lowest share, at * percent. These data indicate that Italians distribute their beverage spending among water, wine, and soft drinks almost evenly, ...

2.4 Trend in demand for distilled spirits

Between July **** and July ****, the trend of online distilled spirits searches in Italy showed considerable fluctuations. In July ****, the index was at **.*, remaining relatively stable until September **** (***). These data indicate a growing focus on distilled spirits, with periods of increased interest likely related to seasonal and holiday events. The steady increase in searches in **** compared to **** suggests a growing curiosity and interest of Italian consumers in distilled spirits.

The numbers represent search interest relative to the highest point on the graph in relation to the region and period indicated. A value of *** indicates the highest frequency of search for the term, ** indicates half of the searches. A score of *, on the other hand, indicates that not enough data were found for the term.

Trend of online searches for distilled spirits Italy, ****-****, index Google Trends, Businesscoot elaboration

the geographic distribution of online searches for distilled spirits in Italy varies widely across regions. Sardinia has the highest index of ***, followed by Trentino-Alto Adige/Südtirol with ** and Valle d'Aosta/Vallée d'Aoste with **. The Friuli-Venezia Giulia and Lazio regions have high values, ** and ** respectively. Other regions in northern and central Italy, such as Veneto (***) follow with slightly lower values. Piedmont, Apulia, Campania ...

2.5 New trends in demand

In recent years, the spirits market has seen a significant transformation, driven by changes in consumer tastes and innovations in the industry. These emerging trends reflect a growing quest for quality, authenticity and sustainability. Below, we explore in detail the major changes that are redefining the demand for distilled spirits globally.

Premiumization: Premiumization is one of the major trends. Consumers are increasingly seeking high-quality products and are willing to pay more for premium and super-premium spirits. This is reflected in increased attention to details such as ingredient origin, distillation process, and packaging. Authenticityand Craftsmanship: There is a growing preference for craft and authentic spirits. Consumers appreciate the unique stories and traditional production techniques that differentiate these products from mass-produced ones. Independent distilleries and small-scale producers are gaining ground with their distinctive products. Sustainability and Transparency: Attention to sustainability is growing. Consumers are more aware of the environmental and social impact of the products they buy. Distilleries that adopt sustainable practices, such as the use of organic ingredients, waste reduction, and renewable energy, are seeing an increase in demand. In addition, transparency about the origin of ingredients and the production process is highly valued. Innovation in Flavors: Experimentation with new flavors is ...

3.1 Market structure and dynamics

Between **** and ****, the number of enterprises active in distillation, rectification and blending of spirits in Italy showed steady growth. In ****, there were *** active enterprises, increasing to *** in **** and *** in ****. In ****, the number increased to ***, continuing to grow to *** in **** and reaching *** enterprises in ****. This represents an overall increase of **.* percent in six years. The steady growth suggests an expanding sector, with new enterprises entering the market and contributing to the development of the spirits industry in Italy.

Number of enterprises active in distillation, rectification and blending of spirits [***] Italy, ****-****, in number Istat

In ****, most enterprises active in alcohol distillation, rectification and blending in Italy were limited liability companies, accounting for **.** percent of the total. Sole proprietors, freelancers and the self-employed made up **.** percent, while limited partnerships and general partnerships accounted for **.** percent and *.** percent, respectively. Joint stock and limited partnerships accounted for *.** percent, and other business forms made up only *.** percent. These figures indicate a prevalence of more formal and organized business structures, such as limited liability companies, in the distillation sector in Italy, while less structured legal forms, such as sole proprietors, are still significantly represented. Legal form of enterprises active in distillation, rectification and blending of spirits Italy, ...

3.2 Value Chain

*. Procurement of Raw Materials:

Agriculture: Cultivation and harvesting of raw materials such as grains, sugarcane, grapes, potatoes, and other botanicals. Supply: Procurement and management of raw materials from farmers and selected suppliers.

*. Processing and Fermentation:

Processing: Processing of raw materials into a usable form, such as grain milling and malting. Fermentation: Mixing of processed raw materials with water and yeast to convert sugars into alcohol.

*. Distillation:

Primary Distillation: Separation of alcohol from the fermented mixture by heating and condensation. Secondary Distillation: Further refining of the distillate to increase alcohol content and improve purity.

*. Aging and Maturation (***):

Barrel Aging: Storage of the distillate in wooden barrels to acquire flavors and improve the sensory profile.

*. Blending and Finishing:

Blending: Combining different distillates to achieve the desired flavor profile. Filtration and Dilution: Filtration to remove impurities and dilution with water to achieve the desired alcohol content.

*. Bottling and Packaging:

Bottling: Filling the bottles with the finished distillate, sealing and applying labels. Packaging: Preparation of final packages for distribution.

*. Distribution and Sales:

Logistics: Transportation of product from producers to distributors and outlets. Marketing and Sales: Promotion and sale of the product through distribution channels and marketing strategies.

3.3 Distribution channels

In ****, value sales in Italy's large-scale retail trade (***) were dominated by distillates and spirits, accounting for **.* percent of the total. This was followed by sweet liqueurs with **.* percent, alcoholic aperitifs with **.* percent, and finally bitters with **.* percent. This indicates a clear dominance of distilled spirits and brandies over other categories of alcoholic beverages, highlighting a consumer preference for these products.

Breakdown of categories in total value sales in the large-scale retail trade Italy, ****, in % Federvini

Between **** and ****, value sales in Italy's large-scale retail trade showed growth for alcoholic aperitifs (***). Sales trends by category in the large-scale retail trade Italy, ****-****, in % Federvini

3.4 The main actors in the supply chain

The following table lists some of the major companies operating in the alcoholic beverage industry in Italy, along with their best-known brands. This overview provides a snapshot of the variety of products offered by the different business groups, highlighting the diversity and richness of the Italian alcohol industry. Each company represented in the table has contributed significantly to the culture and market of alcoholic beverages, both nationally and internationally. Below, you can explore the distinctive brands that characterize each of these companies.

The following are the companies' turnovers in recent years:

4.1 Type of products

The spirits market is extremely diverse and fascinating, reflecting a long history of diverse traditions, innovations and cultures. Each distillate possesses a unique character resulting from a combination of raw materials, production methods, aging, and geographic origins. This guide delves into the major categories of distilled spirits, offering a comprehensive overview ranging from fine whiskies to fine brandies, from aromatic gins to exotic rums, without neglecting vodka and other specialties.

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4.2 Price Analysis

Between June **** and June ****, the consumer price index for alcohol and liquor in Italy increased from ***.* to ***.*, marking a growth of *.* percent. After a phase of stability between June and August ****, the index began to rise, reaching ***.* in October **** and continuing to grow to ***.* in June ****. In the following months, the index showed some fluctuations but maintained a generally upward trend, standing at ***.* as of June ****.

Consumer price index for the whole of alcohol and liquor [***] (***) - monthly data Italy, ****-****, index Istat

From **** to ****, the consumer price index for alcohol and liquor in Italy increased by **.* percent, from ***.* to ***.*. Between **** and ****, the increase was minimal, but in ****, the index rose significantly to ***.*. Thereafter, it continued to rise slowly to ***.* in ****. In **** there was a slight decline to ***.*, followed by a recovery in **** with an index of ***.*. **** saw the largest annual increase, reaching ***.*. Consumer price index for the whole of alcohol and liquor [***] (***) - annual averages Italy, ****-****, index Istat

Over the period ****-****, Italy experienced an average price growth of *.* percent. Food showed an increase of *.* percent, followed by non-alcoholic beverages with an increase of *.* percent. Alcoholic beverages had a growth of *.* percent, while tobacco showed a minimal increase of ...

4.3 New supply trends

In recent years, the spirits market has seen a remarkable evolution, driven by consumers who are increasingly focused on quality, sustainability and innovation. Distilleries, large and small, have responded to these demands with creativity and commitment, spawning new trends that are redefining the industry landscape. Below, we will explore the major trends that are emerging in distilled spirits offerings, reflecting changes in public preferences and expectations.

*. Craftsmanship and Local Production:

Microdistilleries: The growth of microdistilleries has led to an increase in artisanal spirits, produced in small batches. This allows for a greater focus on quality and traditional techniques. Local Authenticity: Consumers are increasingly interested in products that reflect the culture and terroir of their region of origin. Distillates such as gin, vodka, and whiskey are produced using local ingredients.

*. Innovation in Flavors:

Unique Infusions and Botanicals: The use of exotic ingredients and unconventional botanicals is becoming commonplace. Rare junipers, special spices, wild herbs and exotic fruits are being used to create unique flavors. Limited and Seasonal Ed itions: Distilleries are launching limited editions that take advantage of seasonal ingredients, thus creating a sense of exclusivity and urgency in purchasing.

*. Sustainability and Transparency:

Organic Ingredients: The demand for distilled ...

5.1 Regulation of distilled spirits

In Italy, the regulation of the production and sale of distilled spirits is complex and detailed, influenced by both European and national regulations. At the European level, two key regulations are Regulation (***) ****/***, which revises and updates the previous regulation by introducing new rules on the production and labeling of distillates.

In Italy, Law No. *** of **** regulates the production and trade of ethyl alcohol and alcoholic beverages, establishing the requirements for obtaining the necessary licenses for production and distribution, as well as the health and safety standards to be met. Legislative Decree No. *** of January **, ****, regulates the labeling of food products, including distilled spirits, requiring accurate and non-misleading information such as the product name, alcoholic strength, volume of content, name and address of the producer, presence of allergens, and batch number. Legislative Decree No. *** of October **, ****, known as the Consolidated Law on Excise Taxes, regulates excise taxes on alcoholic products, establishing the taxes to be paid and the method of payment. Legislative Decree No. *** of November *, ****, establishes regulations for the production and trade of alcohol and alcoholic beverages, including procedures for the distillation, denaturation and circulation of alcohol.

To produce distilled spirits in Italy, it is necessary to obtain a license from ...

6.1 Market segmentation

• Gruppo Campari
• Martini & Rossi
• Diageo
• Gruppo Montenegro
• Pernod Ricard
• Illva Saronno
• Branca
• Dilmoor
• Fratelli Caffo
• Molinari