This impressive achievement is due to the phenomenal increase in exposure through travel, increased exports of cachaca, rising beverage consumption, increasing consumption of cachaca in younger age groups, etc.
The global Cachaca market worth USD 24 billion by 2028, growing at a CAGR of 7.5%
In addition to the aforementioned reasons, associated factors such as health benefits claims of cachaca and consumption of the fermented spirit in the western nations are also boosting the global cachaca market. However, legal loopholes associated with the spirit and health risk presumptions are conversely hampering the global cachaca market.
However, many countries have their own internal classifications and have legally approved the sale and consumption of cachaca backed by antioxidant & anticoagulant properties which are highly beneficial to the health and well-being. These benefits are creating rife growth opportunities for the global cachaca market. Following these, massive player investments towards product diversification, portfolio expansion, and novel commercialization approaches are also steering futuristic growth outlook in the cachaca market.
Cachaca is a variant of alcoholic beverage which is obtained after fermenting the sugarcane juice. The spirit is popularly known by several other colloquial names such as pinga or caninha. Cachaca is usually consumed as an alcoholic drink in parties, corporate events, guest parties, and similar mass gatherings. For example, mixing the cachaca with Lillet Blanc, lime juice and lemonade are just some of the fusion drinks thar are gaining massive adoption.
Cachaca is used as an alcoholic beverage or either used exclusively in tropical drinks and cocktails. Cachaca is much lighter and fresher than most alcoholic beverages and offers a refreshing feel when consumed. Its use in pharmaceutical and medical firms has increased its scope largely in recent years. Novo fogo is also classed under cachaca. The cachaca suppliers and manufacturers are keen to provide premium quality spirit. They have upgraded their production and manufacturing methods that has helped them gain a competitive edge in the market. The market is witnessing fierce competition between the well-established, emerging, and small or micro producers spread across the world. Many producers are educating consumers about the new categories which is further attracting larger consumer base. This is anticipated to be an opportunity to the global cachaca market.
The key suppliers and producers in the global Cachaca market are IRB Tatuzinho 3 Fazendas, Pituetc, Novo Fogo, BORCO, Cuca Fresca Spirit, Leblon Cachaça, and Da Quinta among others. The market is comprised of well-established local and global players. These players are facing fierce competition by the new and emerging players that are innovating their products. They are also trying out varied packaging and commercial initiatives such as launching new and user-friendly cachaça bottles. Besides exclusive packaging innovation, inclusion of gifts and offers to entice greater user adoption are further disrupting cachaca space, challenging conventional players, and resulting into more opportunities for the new entrants in the market.
Cachaca Market Scope
|Forecast Unit||Value (USD)|
|Revenue forecast in 2028||USD 24 billion|
|Growth Rate||CAGR of 21.97% during 2021-2028|
|Segment Covered||Types, Applications, Regions|
|Regions Covered||North America, Europe, Asia Pacific, Middle East and Africa, South America|
|Key Players Profiled||Bacardi, McDowell's No.1, Celebration, Tanduay, Cachaca 51, Pitu, Captain Morgan, Havana Club, Brugal, and Contessa, Bracelo|
Key Segments of the Global Cachaca Market
Type Overview, 2018-2028 (USD Billion)
- Aged Cachaca
- Un-Aged Cachaca
Application Overview, 2018-2028 (USD Billion)
- Food and Beverage Industry
- Medical Industry
- Pharmaceutical Industry
Regional Overview, 2018-2028 (USD Billion)
- Rest of Europe
- Rest of Asia-Pacific
- Rest of South America
Middle East and Africa
Reasons for the study
- The purpose of the study is to give a comprehensive outlook of the global cachaca market to help you navigate well and benchmark against the competitors in the market.
- To ensure you stay aware of each aspect having major influence on the market and stay ahead in the competitive landscape.
- To classify the market by type, by application, and by region in order to present a granular level analysis of the market so that you better understand the intricacies.
What does the report include?
- The global cachaca market contains both qualitative factors such as drivers, restraints, opportunities, and quantitative factors market size, CAGR, and GDP.
- The study covers current competitive landscape of the market including well-established local and global players as well as the strong emerging players.
- The research studies the market by bifurcating it into product type, application, and region so as to give detailed insights on the market and underlying opportunities.
- Actual market size for the year 2018 and future forecasts for 2018-2028 for all the above-mentioned products, application, and geographies are highlighted.
Who should buy this report?
- The global cachaca market report is intended for all the players across the supply chain including raw material providers, manufacturers, distributors, and other entities across the supply chain.
- This research study is suitable for the venture capitalists and investors seeking in-depth market information across of all the major geographies and looking for opportunities for investing in the market.
- Consultants, researchers, R&D experts, and the inquisitive minds seeking insights on the trends can benefit from this elaborate report on global cachaca market.
Frequently Asked Questions (FAQ) :
The growing use of cachaca due to its health benefits such as higher level of HDL, good cholesterol, and other benefiting factors are the key reasons associated with the growth of the global cachaca market. Cachaca is becoming the primary alcoholic beverage that is being consumed by the westerners as well as other countries to get refreshed and instill more energy while doing strenuous work. The cachaca spirit also offers numerous benefits in the areas of pharmaceutical industry and medical industry which is expanding the market globally.
The growing focus of micro and large cachaca producers on implementing advanced marketing strategies through the optimum utilization of digital technologies and other innovative initiatives are boosting the scope of the global cachaca market. Also, the new strategies have attracted the consumers all over the world towards the cachaca spirit. An increasing number of cachaca producers are using different marketing approaches and manufacturing techniques along with storage upgradation to retain the original components of the beverage to entice and improve consumer experience.
Depending on type segment, the market is studied on the basis of segments namely aged cachaca and un-aged cachaca. The aged cachaca segment gathered the highest share in 2018 and is likely to see a considerable growth in the coming years. The aforementioned advantages coupled with better cost management and improved operational capabilities are expected to boost the market value for the aged cachaca segment in the global cachaca market in the forecasted period.
Depending on application segment the market is studied on the basis of segments namely food and beverage industry, medical industry, and pharmaceutical industry. In 2018, the food and beverage industry segment recorded the maximum market share and is projected to hold better position during the forecast years. The growth of this market segment is mainly ascribed to the growing innovative product offerings, health benefits associated with the liquor, and business efficiency.
The North American region witnessed major growth in 2018 and is anticipated to capture good growth in the forecasted years. This is due to increasing consumption of the beverage in social gatherings, corporate events besides rapid inclusion in the hospitality sector. At the same time, APAC and MEA are also projected to record massive growth in the market due to increasing production plants, medical institutions, pharmaceutical firms, and expansion of hotel industry. These are key factors driving growth of global cachaca market in the region.