Global Vodka Market Report and Forecast 2024-2032

Global Vodka Market Size

The global vodka market reached a value of approximately USD 40.12 billion in 2023. The market is projected to grow at a CAGR of 6.7% between 2024 and 2032, reaching a value of around USD 71.92 billion by 2032.

Vodka Market Outlook

• According to the Behavioral Risk Factor Surveillance System, over half of United States adults drink alcohol; 17% binge drink, and 7% report heavy drinking.

• As per the ABS, in 2022, more than one in four (26.8%) adults exceeded the Australian Adult Alcohol Guideline.

• In China, alcohol and tobacco accounts for about 2.9% of average household expenditures, as estimated by the Central Intelligence Agency.

Vodka Market Growth

Vodka, a clear distilled liquor with 40-55% alcohol content, is composed mainly of water and ethanol, sometimes with added flavourings. Originating from Russia, Poland, or Sweden, it's traditionally distilled from fermented cereal grains. Its purity and neutral flavour make it versatile in mixology, serving as a popular cocktail base.

According to data from the Australian Institute of Health and Welfare, there has been an increasing proportion of young females consuming alcohol since 2019, with 35% reporting alcohol consumption in 2022–2023, up from 28% in 2019.

Key Trends and Recent Developments

Growing consumption of infused vodka drinks, increasing popularity of ready-to-serve canned cocktails, and increased consumption of alcoholic beverages are the major trends propelling the vodka market value.

March 25, 2024

SKYY Vodka launched SKYY Vodka & Soda canned cocktails in the US, featuring lemon & elderflower and lime & mint flavours. These RTD options include SKYY Vodka, soda, and natural flavours, are gluten-free, and vegan, and contain 90 calories per cocktail.

February 22, 2024

Dirty Sue, known for premium olive brine for cocktails, collaborated with GREY GOOSE vodka, they launched three new martini cocktail packs, offering value-added options with enhanced garnishes and ingredients.

February 02, 2024

The Coca-Cola Company and Pernod Ricard unveiled the can design for their new Absolut Vodka & SPRITE pre-mixed cocktail, blending Absolut's smooth character with SPRITE's refreshing lemon-lime flavour in a vibrant, zesty gradient.

January 16, 2024

Absolut® launched the Absolut and Ocean Spray® Vodka Cranberry cocktail in a ready-to-drink format in the United States, featuring premium Absolut vodka and real cranberry juice, available in various flavors and packaging options, increasing the vodka market revenue.

Growing consumption of infused vodka drinks

Infused vodka drinks cater to rising consumer demand for craft beverages with diverse flavours, offering customizable and high-quality drinking experiences beyond traditional vodka options.

Increased consumption of alcoholic beverages by Individuals

Millennials' social lifestyles and desire for unique experiences make vodkas versatile, neutral flavour ideal for creative cocktails, enhancing its appeal and driving the market growth.

Increasing popularity of ready-to-serve canned cocktails

Ready-to-serve canned cocktails provide convenience, well-mixed drinks without preparation, appealing to busy consumers. They are portable and ideal for outdoor activities and social gatherings.

E-commerce channels strengthens

As per vodka industry analysis, digital transformation and e-commerce are reshaping the marketing and distribution of vodka, offering brands expanded consumer engagement and direct sales opportunities through online platforms.

Vodka Market Trends

Consumer preferences for premium and flavoured spirits continue to be significant drivers, with rising demand for craft and artisanal vodka products that offer unique flavours and higher quality. The increasing popularity of ready-to-drink (RTD) canned cocktails, which prominently feature vodka as a base is contributing to the vodka demand forecast. These products cater to convenience-seeking consumers, offering well-mixed drinks that require no additional preparation and are portable for various social settings and outdoor activities. Additionally, sustainable and eco-friendly practices in vodka production are gaining traction, responding to increasing consumer awareness and preferences for environmentally responsible products.

Vodka Industry Segmentation

“Vodka Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Plain Vodka

• Flavoured Vodka

• Fruit Vodka

Market Breakup by Quality

• Standard

• Premium

• Ultra-Premium 

Market Breakup by Distribution Channel

• Off-Trade

• On-Trade

Market Breakup by Region

• North America

• Europe

• Asia Pacific

• Latin America

• Middle East and Africa

Vodka Market Share

Plain vodka is highly preferred by individuals due to its versatility and neutral flavour, making it an essential ingredient

The neutral taste of plain vodka allows it to blend seamlessly with a wide variety of mixers and ingredients, making it the go-to base for numerous cocktails. This adaptability is highly valued where plain vodka is used to enhance the flavours of other ingredients without overpowering them. Individuals appreciate plain vodka for its consistent quality and taste, which offers reliability. This broad appeal ensures a steady and substantial sales volume, significantly contributing to vodka industry revenue. The rise of premium and craft vodka brands further underscores the appeal of plain vodka, as consumers are willing to pay more for higher quality and unique distillation processes. 

Fruit vodka has become increasingly popular among consumers, driving substantial growth in the market for several reasons. Its wide variety of flavours appeals to individuals seeking diverse and enjoyable drinking experiences, which is the key trend of vodka market. This flavour diversity enhances consumer choice and encourages experimentation, where fruit vodka is a versatile base for creating a range of refreshing cocktails.

Moreover, fruit vodka attracts a younger demographic drawn to its novelty and creative potential in cocktails. The market reflects this trend, with increased demand for flavoured and infused spirits, including fruit vodkas, prompting producers to innovate and introduce new products to meet consumer preferences.

Leading Manufacturers in the Vodka Market

Key companies and major distributors are catering to specific preferences of consumers by focusing on their primary ingredients.

Diageo PLC: Founded in 1997, with its headquarters in the United Kingdom, a major distributor, owns distilleries producing 40% of Scotch whisky and several renowned spirits brands globally.

Pernod Ricard Group: Founded in 1975, with its headquarters in France, is the world's second-largest wine and spirits seller and is renowned for its anise-flavoured pastis apéritifs, including Pernod and Ricard.

Grey Goose: Founded in 1997, with its headquarters in France, a vodka brand created in the 1990s by American businessman Sidney Frank, Grey Goose, was acquired by Bacardi in 2004. 

Fifth Generation, Inc.: Founded in 1997, with its headquarters in the United States, developed its high-quality vodka brand called TITO’s Vodka, focusing on producing vodka using yellow corn as the primary ingredient.

Other global vodka market key players are Polmos Å»yrardów Sp. z o.o. , William Grant & Sons Ltd., Stoli Group USA, LLC, Russian Standard Vodka LLC, Brown-Forman, and Wodka Company Ltd, among others.

Vodka Market Analysis by Region

Regions such as North America and Europe hold significant shares in the global market, primarily due to the widespread acceptance of alcoholic beverages and their popularity as an after-dinner drink in the USA, which boosts the revenue of the vodka market in United States.

Conversely, the demand in the Asia Pacific region is projected to surge in the coming years. This growth is driven by the expanding economies of India, China, and Japan, as well as emerging trends in plain vodka consumption in these countries, fueled by increasing Western influence and a large customer base.

Key Highlights of the Report

Vodka Market Report Snapshots

Vodka Market Size

Vodka Market Share

Vodka Market Growth

Vodka Market Trends

Vodka Market Analysis

Vodka Companies

Vodka Market Regional Analysis