Flavored Alcohol Market Report 2026

The flavored alcohol market size has grown steadily in recent years. It will grow from $1.27 trillion in 2025 to $1.33 trillion in 2026 at a compound annual growth rate (CAGR) of 4.9%. The growth in the historic period can be attributed to changing consumer taste preferences, growth of social drinking culture, expansion of flavored beer and spirits categories, rising demand for low-bitterness alcohol, strong presence of on-trade channels.

The flavored alcohol market size is expected to see steady growth in the next few years. It will grow to $1.58 trillion in 2030 at a compound annual growth rate (CAGR) of 4.4%. The growth in the forecast period can be attributed to increasing demand for premium and craft alcohol products, expansion of RTD alcoholic beverages, rising influence of younger consumers, growth of e-commerce alcohol sales, increasing experimentation with exotic flavors. Major trends in the forecast period include increasing launch of novel flavored alcohol variants, rising demand for fruit and botanical infusions, growing popularity of ready-to-drink flavored alcohol, expansion of premium and craft flavor profiles, enhanced focus on packaging and branding differentiation.

Growing demand for ready-to-drink beverages is expected to propel the growth of the flavored alcohol market going forward. Ready-to-drink (RTD) beverages are pre-mixed, pre-packaged drinks that are consumed immediately and do not require any additional preparation by the consumer. The demand is increasing due to convenience, changing consumer preferences, and continuous innovation in flavor profiles. RTD beverages offer a ready-to-consume format that suits busy lifestyles and social occasions, appealing to consumers who value ease of use and flexibility. They also provide a wide variety of flavors, attracting consumers seeking new and refreshing taste experiences. For instance, in February 2024, according to the Distilled Spirits Council of the United States (DISCUS), a US-based trade association, premixed cocktails, including ready-to-drink beverages, grew 26.8% year-on-year in 2023, reaching US$2.8 billion in revenue. Therefore, the growing demand for ready-to-drink beverages is driving the flavored alcohol market.

Leading companies in the flavored alcohol market are concentrating on developing innovative products such as ready-to-drink (RTD) cocktail-style beverages, designed to offer consumers a convenient way to enjoy robust cocktails on the move. These pre-mixed alcoholic drinks provide the luxury of premium cocktails in easy-to-consume packaging. For instance, The Boston Beer Company launched Slingers Signature Cocktails in April 2023. These malt-based beverages boast an ABV of 8%, exceeding many other RTD cocktails, and come in flavors such as Bahama Mama, Peach Screwdriver, and Pineapple Punch. The company aims to offer Slingers at an accessible price point, delivering a high value proposition to consumers. Packaged in 24-ounce cans, Slingers cater to the needs of busy consumers seeking convenience.

In March 2023, Diageo, a UK-based alcoholic beverage giant, acquired Don Papa Rum to capitalize on the rapidly expanding super-premium plus rum sector and strengthen its position in the premium and super-premium spirits markets. This strategic acquisition enhances Diageo's portfolio with Don Papa, a renowned Philippines-based producer of flavored alcohol such as Don Papa Gayuma, aligning well with Diageo's strategy to focus on premiumization.

Major companies operating in the flavored alcohol market are AB InBev, Diageo, Pernod Ricard, Molson Coors Beverage Company, Constellation Brands Inc., Bacardi Limited, Brown-Forman, SAZERAC CO INC., Campari Group, Boston Beer Company, Edrington, Jack Daniel's Properties Inc., Heaven Hill Distillery, LUXCO INC., Beam Suntory Inc., White Claw Seltzer Works, Hard Seltzer Beverage Company LLC, Heineken N.V., Carlsberg Group, Asahi Group Holdings, Kirin Holdings, Rémy Cointreau, Becle S.A.B. de C.V. (Jose Cuervo), Thai Beverage Public Co. Ltd.

North America was the largest region in the flavored alcohol market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the flavored alcohol market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the flavored alcohol market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The flavored alcohol market consists of sales of tequila, gin, brandy and moonshine. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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