Gin Market Trends

Growth Drivers

• Shift toward natural botanicals: Consumer tastes in the gin industry are progressively leaning towards products enriched with natural botanicals like juniper, coriander, citrus peel, and assorted herbs. This trend corresponds with wider movements towards sustainability and clean-label ingredients. Consequently, producers are implementing sophisticated extraction techniques, such as CO₂ supercritical fluid extraction and water-based distillation, which remove the necessity for harmful solvents and greatly minimize chemical residues and waste. These environmentally friendly chemistry methods not only improve the purity and flavor profile of the product but also promote ecological objectives, enhancing brand value and fulfilling regulatory requirements in environmentally aware global markets.

• Advanced catalytic technologies: The incorporation of sophisticated catalytic technologies into distillation methods has resulted in notable enhancements in energy efficiency. These advancements, which encompass catalytic distillation systems and heat-recovery stills, have effectively contributed to decreasing carbon emissions and lowering overall production expenses. By increasing throughput and providing cleaner, more refined outputs, these innovations are being increasingly embraced by mid-sized distilleries that seek to enhance operational efficiency and sustainability. As environmental regulations become more stringent and energy prices escalate, the implementation of such catalytic technologies enables producers to maintain competitiveness while fulfilling both economic and environmental performance standards.

• Gin-based cocktail renaissance: The increasing demand for gin cocktails is driving gin growth in the market. In the U.S., 9 million 9-liter cases of gin were sold in 2023, generating just over $1 billion, according to the Distilled Spirits Council of the United States. The super-premium segment increased by an astounding 16%, underscoring consumer preferences for higher-quality and more versatile spirits. The wind in the market sails towards consumer-friendly drinks like the Negroni and the Gin & Tonic, helping gin build strength in both on-premise and off-premise areas.

Trade Data for Gin and Geneva

Top 5 Exporters of Gin and Geneva (2021)

Source: WITS

Top 5 Importers of Gin and Geneva

Source: WITS

Challenges

• Supply chain disruptions: Gin is produced from botanicals such as juniper berries, citrus peels, and coriander. Many of these botanicals are sourced from around the world. Supply chain issues, often caused by political instability, climate change, or global shipping disruption, can cause these botanicals to be short in supply and raise ingredient costs. The COVID-19 pandemic has exposed these supply chain vulnerabilities, such as the availability of glass bottles and packaging material. Distillers now walk a fine line to balance the quality of gin with the [input] costs while creating distillate with consistent flavor profiles. Long-term disruptions could lead to a degraded sense of brand reputation if consistency in product quality and availability does not align with consumer expectations.

• Rising production and energy costs: Gin production is also an energy-intensive process that relies on heating and cooling, as well as a system for measuring the quality of the distillate. Rising energy prices have not only affected energy costs, but inflation during the same time for raw materials and labor has greatly increased distilling costs. Smaller distillers, especially, feel pressure since they do not have the leverage of economies of scale to offset the costs of production without affecting their retail price. If a distiller is to offset costs solely based on a higher retail price, this reduction in competitiveness creates a great risk, especially in price-sensitive markets. Long-term sustainability may require a large capital expenditure to invest in new energy-efficient equipment and renewable energy.