Absinthe Market - By Type (Bohemian, Liqueur, Amber, Blanche, Ordinaire, Verte, Reve pastis, & others), By Flavor (Sweet fennel, Anise, & Wormwood), By Application (Food & beverages, Cosmetics, pharmaceutical industry, & others), By Distribution Channel (Wine shops, Bars, restaurants, & others), By Geography - Global Opportunity Analysis & Industry Forecast, 2022-2027

Absinthe Market Overview

Absinthe Market size is estimated to reach $44.6 billion by 2027, growing at a CAGR of 3.4% during the forecast period 2022-2027. Absinthe falls under the category of spirits that have anise flavor and are usually fabricated from antispasmodic plant green anise, leaves of common wormwood plant (Artemisia absinthium) which have a bitter aroma, and several other medicinal herbs. Besides, wormwood botanicals like lemon balm, star anise, melissa, and hyssop are taken into consideration during the fabrication of absinthe. These herbs ensure a dark green color to the spirit. Owing to its health benefits such as healthier metabolism, and anesthetic properties it plays a significant role in the medical industry. Absinthe is recognized worldwide for its humungous alcohol by volume content of 45-76%. Consequently, during consumption, it becomes essential to dilute the drink with water. Considering the high popularity of this anise-flavored spirit among artists, musicians, and high-profile people Absinthe Market outlook appears fairly appealing. Moreover, augmentation in disposable income of people with economic prosperity, heightening demand for luxurious drinks, and availability of a variety of flavors are factors set to drive the growth of the Absinthe Market for the period 2022-2027.

Report Coverage

The report: "Absinthe Market Forecast (2022-2027)", by Industry ARC, covers an in-depth analysis of the following segments of the Absinthe Market.

Key Takeaways

• Geographically, the Europe Absinthe Market accounted for the highest revenue share in 2021. However, Asia-Pacific is poised to dominate the market over the period 2022-2027.
• Proliferating alcohol consumption throughout the globe is said to be the preeminent driving factor for the growth of the Absinthe Market. A permanent ban on its usage due to health hitches like hallucinations, seizures, and facial contractions is said to reduce the market growth.
• Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Absinthe Market report.

The Absinthe Market based on the type can be further segmented into bohemian, liqueur, amber, blanche, ordinaire, verte, reve pastis, and others. The bohemian segment held the largest share in 2021. The growth is owing to the rising trend of bohemianism among a larger faction of millennials. Increasing pop and rap culture is acting as a potent trigger and driving young people to unconventional lifestyles. Moreover, due to the presence of social media, hip-hop culture is spreading throughout the world including both urban and rural areas. Nevertheless, bohemian and reve pastis is estimated to be the fastest-growing segment with a CAGR of 4.5% over the forecast period 2022-2027. This growth is owing to less sugar and alcohol by volume content in it. Unlike other absinthe, reve pastis contains around 40% of ABV and less than 100g per liter of sugar content. Moreover, reve pastis includes supplementary licorice root flavor which further augments the product demand.

Absinthe Market Segment Analysis - By Application

The Absinthe Market based on the application can be further segmented into food and beverages, cosmetics, pharmaceutical industry, and others. The food and beverage segment held the largest share in 2021. The growth is owing to the growing use of food additives. Absinthe leaves have become part of many kitchens throughout the globe as it is used in the tempering of fish, escargot, meat, and other dishes. Moreover, it is considered to extend anise flavor to puddings and dressings. Nevertheless, the pharmaceutical segment is estimated to be the fastest-growing with a CAGR of 4.8% over the forecast period 2022-2027. Absinthe plays a significant role in the treatment of IgA nephropathy. Moreover, its mending properties have proliferated its use in worm infections, sexual problems, depression, and liver maladies. Moreover, it also prevents cerebrovascular ailments and provides tumor protection by enhancing immunity and curing depression fueling the segment growth.

Absinthe Market Segment Analysis-By Geography

The Absinthe Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. Europe held the largest share with 37% of the overall market in 2021. The growth in this segment is owing to the factors such as ferocious alcohol consumption. Europe is the largest alcohol consumer throughout the globe. According to a report published in 2021 by WorldAtlas, 9 out of 10 biggest alcohol-consuming countries are situated in Europe. All these 9 nations have per capita consumption of over 12 liters. On another hand, many European countries like Switzerland, and France produce Absinthe on a large scale. However, Asia-pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to rising pop culture among young Asians. On another hand, heightening the disposable income of Asians is allowing them to undergo such luxury purchases. Besides, proliferating health maladies in both North America and Asia have broadened the medical scope of the absinthe market, thus, boosting the regional demand.

Absinthe Market Drivers

Heightening purchasing power of people is Anticipated to Boost Product Demand.

Due to affluent economies, residents of several European and North American countries like the U.S., Canada, France, Germany, Switzerland, Luxembourg, and others enjoy healthy and comfortable lifestyles and are also inclined towards luxury and impulse purchases. According to International Monetary Fund (IMF), the per capita personal income of the U.S. in 2021 was $68,300. Besides, countries like Luxembourg and Ireland had over $100,000 per capita as of 2021. Moreover, Asia is turning the tables in its favor and emerging as the new wealth center of the world. Countries like China, India, Japan, and Indonesia are playing a huge role in this drastic shift. Recently, China was declared the wealthiest nation on planet earth with a wealth of more than $500 trillion. On another hand, the trade surplus of these countries is increasing despite the pandemic and the overall living standard of people is enlarging. These factors are anticipated to play a great role in the growth of the Absinthe market.

Enlarging binge drinking and health problems are Expected to Boost Product Demand.

Growing stress and depression problems amongst the young population owing to their eventful lifestyles have enhanced their alcohol consumption levels which is playing a significant role in driving the market forward. Moreover, with diminishing immunities several cerebrovascular and cardiovascular complication has emerged as a tough challenge. According to a report published by WHO, around 3.8% of the total world population which is around 280 million people have had depression as of 2021. Millions are lying on hospital beds waiting for their last breath due to severe cardiovascular complications like cancer, and heart attacks. These figures are spiking day after day and therefore enhancing overall applications of absinthe in the pharmaceutical sector. On another hand, heightening binge drinking is another major reason behind the growth of the Absinthe Market. Binge drinking is defined as consuming 5 or more drinks on an occasion for men or 4 or more drinks on an occasion for women. According to the Centers for Disease Control and Prevention, one in six U.S. adults binges drinks, with 25% doing so at least weekly which in turn is supporting market growth.

Absinthe Market Challenges

Government bans and health problems associated with excess alcohol consumption is Anticipated to Hamper Market Growth.

Unlike ordinary alcohol drinks and spirits, this potent liquor has around 40-76% alcohol by volume content which leads to various health complications in motion. One of the biggest complications associated with its use is hallucinations. Moreover, its consumption erupts in numbness, seizures, and facial contractions. On the other hand, addiction to this drink leads to impaired neurological functions and increases criminal behavior in a person. Therefore, governments around the globe have taken necessary steps from time to time in order to curtail the overall usage of absinthe such as temporary and permanent bans, thus, impeding the market growth.

Absinthe Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Absinthe Market. Key companies of this market are-

1. Pacific Distillery
2. Hood River Distiller
3. La Fee Absinthe
4. La Clandestine
5. Hill's Liquere North America
6. Milan Metelka
7. Kubler Absinthe Superieure
8. Teichenne
9. Duplais Verte
10. Pernod Richard

Recent Developments

• On December 15, 2021, a collaboration between Maryland, United States-based "Bethesda Softworks", a video game company, and London, England-based distillers Jim and Tonic and Rebel brought Skooma drug to life and made limited-edition absinthe having 69% alcohol by volume.
• On September 21, 2021, French-based beverage conglomerate company "Pernod Ricard" which is famous for its anise pastis announced that it has signed an agreement with UK-based online retail company "The Whiskey Exchange." According to the agreement, Pernod will acquire Whiskey exchange at a price of $25 million.
• On October 9, 2019, Pernod Ricard, a Paris, France-based wine and spirit developer publicized the successful acquisition of New York, United states-based premium beverage marketing company "Castle Brands." The total value of the transaction stands around $223 million and existing shareholders of castle Brands received $1.27 per share.

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