Global Botanical Alcoholic Beverages

Market Synopsis

The global Botanical Alcoholic Beverages market size was USD 91.61 Million in 2024 and is expected to reach USD 153.21 million at a CAGR of 6.64% during the forecast period. Revenue growth is being driven by rising consumer preference for natural, plant-based ingredients, increasing demand for premium craft spirits, and the growing popularity of botanical-infused beers, ciders, wines, and RTD beverages. Expanding urban populations with evolving social lifestyles, coupled with stronger demand for low- and no-alcohol alternatives among health-conscious consumers, are further accelerating adoption. Additionally, innovations in botanical formulations, sustainable sourcing, and the introduction of organic and functional botanicals are reshaping product offerings and strengthening appeal across younger demographics. The global market is benefiting from shifting consumer perceptions of alcohol—from being merely recreational to offering lifestyle, wellness, and artisanal value. With over 56% of the world’s population now living in urban areas (World Bank, 2024), changing drinking cultures, premiumization trends, and the rising popularity of mixology and craft cocktails in Europe, North America, and Asia–Pacific are fueling strong growth opportunities for botanical beverages. Consumers are increasingly drawn to unique flavors, authenticity, and experiential drinking, making botanical alcohols a fast-growing segment within the wider alcoholic drinks market.

Global Botanical Alcoholic Beverages MARKET (USD Million)

Global Botanical Alcoholic Beverages Market By Product Type Insights:

Botanical Spirit segment accounted for market share of share 53.26% in 2024 in the global botanical alcoholic beverages food market.

The botanical spirit segment accounted for the largest share of the global Botanical alcoholic beverages market in 2024, representing 53.26% of total revenues. Botanical spirit segment is expected to register a CAGR of 6.67% during the forecast year from 2025 to 2032 and expected to reach USD 81.77 million in 2032.  Rising global demand for premium, artisanal, and craft spirits is fueling interest in botanical gins, vodkas, and liqueurs. Consumers are increasingly seeking unique flavor profiles, authenticity, and small-batch production that botanicals naturally provide.

A growing preference for natural, plant-based, and lower-sugar alcoholic options is encouraging adoption of botanical spirits, which are perceived as cleaner and healthier alternatives compared to conventional spirits. The surge of mixology culture, cocktail bars, and at-home experimentation has made botanical spirits—especially gin—a core ingredient in modern drinking rituals, driving consistent demand across both on-trade and off-trade channels. Producers are continuously innovating with herbs, spices, flowers, fruits, and exotic botanicals, offering consumers an ever-expanding portfolio of distinct tastes and aromas. This aligns with the rising global trend of personalization in alcoholic beverages.

Global Botanical Alcoholic Beverages Market by product type (USD Million)

Global Botanical Alcoholic Beverages Maret by Source Insights:

Herbs segment accounted for the largest market share of share 43.49% in 2024 in the global Botanical Alcoholic Beverages market.

Based on the source, the global botanical alcoholic beverages is segmented into Herbs, Spices, Flowers, Fruits & Citrus Peels, Roots & Barks and others. Among these, the herbs segment held the largest revenue share of 43.49% 2024, and expected to register a CAGR of 6.67% between 2025 to 2032 and the market is expected to reach USD 66.80 million by 2032. Modern consumers are increasingly shifting toward plant-based, natural, and functional ingredients in their alcoholic beverages, and herbs such as basil, rosemary, mint, and sage deliver both flavor complexity and a perception of health benefits. These ingredients resonate with health-conscious Millennials and Gen Z who associate herbal infusions with “clean label” products, lower sugar content, and a more authentic drinking experience. The rise of craft and premium spirits, especially botanical gins and liqueurs, has further propelled the demand for herbs, as they allow for unique taste profiles and innovation in mixology.

This growth will be supported by continued experimentation by distillers and brewers, the surge in low- and no-alcohol botanical beverages, and increasing adoption of herbs in ready-to-drink (RTD) cocktails. Additionally, the sustainability trend is pushing manufacturers to use locally sourced and organic herbs, enhancing both environmental appeal and premium positioning. The versatility of herbs across spirits, wines, beers, and RTDs ensures that they remain a cornerstone ingredient, driving both innovation and consumer acceptance in the botanical alcoholic beverages market through 2032.

Global Botancial Alcoholic Beverages MARKET by source (USD Million)

Global Botanical Alcoholic Beverages Maret by Alcoholic content Insights:

Low Alcohol (≤5% ABV segment accounted for the largest market share of share 39.23% in 2024 in the global botanical alcoholic beverages market.

Based on source, the global botanical alcoholic beverages market is segmented into Low Alcohol (≤5% ABV, Medium Alcohol (6%–20% ABV) and High Alcohol (>20% ABV)). Among these, the Low Alcohol (≤5% ABV segment held the largest revenue share of 39.23% in the global botanical alcoholic beverages market in 2024 and expected to register a CAGR of 6.66% from 2025 to 2032 and expected to reach USD 60.18 million. The dominance of the Low Alcohol (≤5% ABV) segment is driven by shifting consumer preferences toward healthier and lighter drinking options, particularly among younger demographics such as Gen Z and Millennials. With rising awareness around wellness and moderation, consumers are increasingly seeking beverages that offer the social and sensory appeal of alcohol without the negative health effects of higher alcohol content. Botanical infusions in low-ABV beverages align strongly with this trend, as they combine refreshing flavors with natural, plant-based ingredients that are perceived as cleaner and more premium. Additionally, the global movement toward mindful drinking, coupled with the popularity of sessional drinks suitable for casual and frequent consumption, has positioned this category as a mainstream choice across both developed and emerging markets. Growth is further supported by the expansion of innovative product offerings, such as ready-to-drink (RTD) botanical cocktails, low-ABV spritzers, and flavored botanical beers and ciders that cater to on-the-go lifestyles and urban consumers. These products are gaining strong traction through supermarkets, convenience stores, and especially e-commerce platforms, where low-ABV beverages are often marketed as modern, aspirational lifestyle products. The category also benefits from government initiatives in some regions encouraging moderation and from premium positioning in bars and restaurants where mixologists highlight botanical flavors as sophisticated alternatives. This balance of health, convenience, and indulgence, backed by continuous innovation in flavors and packaging, ensures that the low-alcohol botanical beverages segment will remain the most dynamic growth engine within the market.

Global Botanical Alcoholic Beverages MARKET by alcoholic content (USD Million)

Global Botanical Alcoholic Beverages Food Market by Distribution Channel Insights:

Online segment accounted for the largest market share of share 71.71% in 2024 in the global botanical alcoholic beverages market.

Based on distribution channel, the global botanical alcoholic beverages market is segmented into online and offline. Among these, online segment held the largest revenue share of 71.71% in the global botanical alcoholic beverages market in 2024 and expected to register a CAGR of 6.62% from 2025 to 2032 and the conventional segment is expected to reach USD 109.72 million. The online distribution channel is gaining dominance in the botanical alcoholic beverages market as digital retailing provides unmatched accessibility, product variety, and convenience for consumers. With the rise of e-commerce platforms and direct-to-consumer (D2C) brand strategies, shoppers now have access to a much broader selection of botanical spirits, wines, beers, and RTDs compared to traditional brick-and-mortar outlets. Online platforms allow brands to highlight unique attributes such as organic sourcing, sustainable practices, or craft production, which strongly resonate with health-conscious and premium-oriented consumers. The ability to browse, compare, and purchase products from anywhere, supported by secure payment systems and reliable home delivery, has made online purchasing the preferred channel for a large portion of urban consumers globally.

In addition, digital marketing tools and personalized recommendations are playing a critical role in fueling this growth. Social media platforms, influencer partnerships, and targeted advertising campaigns are creating awareness and driving trial among younger demographics who are more inclined toward botanical and low-ABV alternatives. Subscription models, virtual tasting events, and exclusive online launches are further strengthening brand loyalty and recurring purchases in this segment. The accelerated adoption of e-commerce during the COVID-19 pandemic also permanently shifted consumer behaviour toward online shopping for alcohol, and with ongoing technological improvements, this trend is expected to remain sticky. As a result, the online channel continues to act not only as a sales platform but also as a powerful brand-building and consumer engagement tool, solidifying its leadership in the market.

Global Botanical Alcoholic Beverages MARKET by ingredient (USD billion)

Global Botanical Alcoholic Beverages Market by end use:

Millennials (26–40 years) segment accounted for the largest market share of share 33.23% in 2024 in the global botanical alcoholic beverages market.

Based on end use millennials (26–40 years), the global botanical alcoholic beverages market is segmented into Gen Z (21–25 years), Millennials (26–40 years), Gen X (41–55 years) and Baby Boomers (56+ years). Among these, Millennials (26–40 years), segment held the largest revenue share of 33.23% in the global botanical alcoholic beverages market in 2024 and expected to register a CAGR of 6.69% from 2025 to 2032 and expected to reach USD 51.10 million in 2032.  Millennials (26–40 years) represent the largest consumer group in the botanical alcoholic beverages market due to their strong preference for healthier, natural, and premium drinking options. This generation is highly experimental, open to trying new flavors, and driven by curiosity for unique sensory experiences, which aligns well with botanical spirits, wines, and RTD cocktails. Millennials are also at a life stage where disposable incomes are rising, and social occasions — from casual gatherings to upscale dining — remain central to their lifestyle, fueling consistent demand. Their awareness of sustainability and wellness trends further boosts the appeal of botanical beverages, which are often marketed as cleaner-label, eco-conscious, and craft-oriented alternatives to conventional alcohol.

The segment’s growth is also being accelerated by the strong digital presence of Millennials, who rely heavily on e-commerce platforms, influencer marketing, and peer recommendations when choosing beverages. Online retail, subscription services, and virtual events make botanical beverages more accessible to this demographic, while premium packaging and artisanal branding reinforce perceived value. In addition, Millennials are moderating their alcohol consumption compared to previous generations, which makes low- and medium-ABV botanical beverages particularly attractive.

Global Botanical Alcoholic Beverages by end use (USD Million)

Global Botanical Alcoholic Beverages Market by Region:

Europe segment accounted for the largest market share of share of 37.45% in 2024 in the global botanical alcoholic beverages market.

Based on region, the global botanical alcoholic beverages market is segmented into Europe, Asia-Pacific, North America, Latin America and Middle East & Africa. Among these, Europe region held the largest revenue share of 37.45% in the global botanical alcoholic beverages market in 2024 and expected to register a CAGR of 6.55% from 2025 to 2032 and the Retort segment is expected to reach USD 57.01 million in 2032. The market is largest in Europe due to its deep-rooted tradition of herbal infusions, aperitifs, and botanical spirits. Countries such as Italy, France, Germany, and the UK have long histories of producing botanical-based drinks like vermouth, gin, and herbal liqueurs, which creates a strong cultural foundation for this category. The region’s well-established premium alcohol market, combined with rising consumer preference for artisanal, craft, and natural products, is driving demand for botanical spirits, wines, and RTDs. Additionally, the EU’s regulatory emphasis on clean-label ingredients and organic certifications further strengthens consumer trust, boosting adoption of botanical alcohol products.

Growth in Europe is also supported by shifting lifestyle and consumption patterns, particularly among younger demographics who are moderating alcohol intake and seeking lower-ABV, wellness-oriented options. The region’s robust retail infrastructure — from specialty liquor outlets to strong e-commerce penetration — ensures high product accessibility. Moreover, tourism and hospitality sectors, especially in Mediterranean countries, continue to promote botanical beverages as part of premium dining and social experiences, further fueling demand. 

Global Botanical Alcoholic Beverages MARKET by region (USD billion)

Major Companies and Competitive Landscape 

The global botanical alcoholic beverages market is fragmented, with a mix of large multinational brands and emerging craft producers competing for market share. Major players are actively pursuing strategies such as mergers and acquisitions, collaborations with craft distilleries, and partnerships with hospitality and retail channels to expand their presence. Many companies are also investing in product innovation — from low-ABV botanical spirits to functional botanical blends — to cater to diverse consumer preferences. These efforts are aimed at enhancing flavor authenticity, ensuring consistent quality, and broadening product accessibility across both online and offline channels.

In addition, leading players are increasingly focusing on sustainable sourcing of botanicals, eco-friendly packaging solutions, and transparent labeling to strengthen consumer trust and brand loyalty. The rise of health-conscious consumers and demand for natural, plant-based ingredients is pushing companies to experiment with unique botanicals such as herbs, spices, flowers, and citrus peels. This innovation pipeline, combined with premiumization strategies and the expansion of distribution networks, is expected to intensify competition and drive long-term growth in the botanical alcoholic beverages market. Some of the leading companies profiled in the global botanical alcoholic beverages market report include:

• Diageo Plc 
• Pernod Ricard S.A. 
• Bacardi Limited 
• Belvedere (LVMH) 
• The Sazerac Company 
• Grey Goose (Bacardi) 
• Absolut Juice (Pernod Ricard) 
• Nestlé S.A. 
• Archer Daniels Midland (ADM) 
• Bumblezest 
• Cotswolds Distillery 
• Martin Bauer Group 
• Fever-Tree 
• Blue Sky Botanics Ltd. 
• IDo Herbal & Functional Producers 
• Chartreuse 
• Strega 
• Becherovka 
• Underberg 
• Hendrick’s Gin 
• Monkey 47 
• Bombay Sapphire 
• Aviation American Gin 
• Roku Gin (Suntory) 
• The Botanist Gin (Bruichladdich) 

Strategic Development

Diageo Scaling Up to meet the demand: Portfolio Modernization & Strategic Divestment

Diageo: Scaling Up Circular Packaging Globally (2023–2024)

• In December 2023, Diageo expanded its ecoSPIRITS partnership globally after successful 2022 trials in Indonesia.
• The rollout will cover 18 markets over the next three years, using reusable ecoTOTE packaging to cut carbon emissions and packaging waste.
• This forms part of its Society 2030: Spirit of Progress sustainability agenda.

Scope of Research

Some Key Questions the Report Will Answer

• What is the expected revenue Compound Annual Growth Rate (CAGR) of the global botanical alcoholic beverages market over the forecast period (2025–2032)?
  • The global botanical alcoholic beverages market revenue is expected to register a Compound Annual Growth Rate (CAGR) of 6.64% during the forecast period. 
• What was the size of the global botanical alcoholic beverages in 2024? 
  • The global botanical alcoholic beverages market size was USD 91.61 Million in 2024.

• Which factors are expected to drive the global botanical alcoholic beverages market growth?
• The growth of the global botanical alcoholic beverages market is being driven by rising consumer demand for natural, clean-label, and health-oriented drinks that combine wellness with indulgence. Younger demographics, particularly Millennials and Gen Z, are showing a strong preference for beverages infused with herbs, spices, flowers, fruits, and other botanicals due to their perceived functional benefits, unique flavor profiles, and premium appeal. In addition, the rapid expansion of low- and no-alcohol variants is catering to the sober-curious movement, further widening the consumer base. Innovation in craft distilling, sustainable sourcing of ingredients, and eco-friendly packaging are also attracting health-conscious and environmentally aware consumers. Strong distribution growth through online retail channels, premium bars, and specialty stores, coupled with increasing popularity of cocktails and mixology culture worldwide, is further accelerating market expansion.
• Which was the leading segment in the global botanical alcoholic beverages market in terms of product type in 2024?
  • Botanical spirits segment was leading in the botanical alcoholic beverages market on the basis of product type in 2024.  
• What are some restraints for revenue growth of the global botanical alcoholic beverages market?
• Revenue growth of the global botanical alcoholic beverages market faces several restraints despite strong consumer interest. High production costs associated with sourcing premium botanicals, sustainable ingredients, and small-batch distilling can limit affordability and mass adoption, particularly in price-sensitive markets. Strict regulatory frameworks governing alcohol production, labeling, and marketing—especially for products positioned as “healthier” or functional—pose compliance challenges and may restrict product innovation. Additionally, limited consumer awareness in developing regions, supply chain complexities in maintaining ingredient consistency, and strong competition from traditional alcoholic beverages such as beer, wine, and spirits can slow market penetration. Economic uncertainties and inflationary pressures also influence discretionary spending on premium and craft beverages, potentially hindering long-term revenue growth.

Follow us on: Facebook, Twitter, Instagram and LinkedIn.