Bourbon spirits market seen rising to $12.8 billion by 2031

By AI, Created 1:42 PM UTC, May 25, 2026, /AGP/ – The bourbon spirits market is projected to grow from $7.8 billion in 2021 to $12.8 billion by 2031, driven by premiumization, millennial demand and broader cocktail culture. The report also flags regulatory limits on alcohol advertising and competition from non-alcoholic drinks as key restraints.

Why it matters: - The bourbon spirits market is expanding as consumers spend more on premium alcohol and shift toward quality, authenticity and provenance. - The trend matters for distillers, distributors and retailers because growth is being reinforced by cocktail culture, e-commerce and rising demand in developing and developed markets. - The market also faces pressure from tighter alcohol advertising rules, health concerns and competition from non-alcoholic beverages.

What happened: - Allied Market Research said the global bourbon spirits market was valued at $7.8 billion in 2021 and is estimated to reach $12.8 billion by 2031. - The forecast implies 5% compound annual growth from 2022 to 2031. - The report points to premiumization, urbanization, product innovation and higher spending by millennials as major growth drivers. - Spirit tourism and the use of bourbon whiskey in premium cocktails are also supporting demand.

The details: - Consumer demand is rising for bourbon spirits distilled with organic malted barley and grains. - Manufacturers are targeting tech-savvy younger consumers with more personalized products and stronger digital access. - Social media is becoming a bigger sales tool for American whiskey and bourbon brands. - Young consumers are experimenting more with alcoholic beverages, which is strengthening cocktail culture and increasing whiskey use as an ingredient. - Organic whiskey is emerging as a growth area as consumer awareness of ingredients increases. - The market continues to perform in both off-trade and on-trade channels, although the coronavirus outbreak hurt on-trade sales globally. - Manufacturers are leaning harder into online retail, e-commerce partnerships and e-delivery systems. - A report cited by Allied Market Research said alcohol e-commerce sales rose about 42% in 2021 across core markets including the U.S., the UK, Spain, Japan, Italy, Germany, France, Brazil, China and Australia. - The market is segmented by type, ABV, distribution channel and region. - Type segments include wheated, barrel finished, barrel select and others. - ABV segments include 40-45%, 46-55% and 56% and above. - Distribution channels include on-trade and off-trade, with off-trade covering supermarkets, convenience stores, specialty stores and online retailers. - Regional analysis covers North America, Europe, Asia-Pacific and LAMEA. - Key players named in the report include Suntory Holdings Limited, Brown-Forman Corporation, MGP Ingredients, Laws Whiskey House, Conecuh Brands, Distiller’s Way, Sazerac, Kirin Holdings, Bacardi, Michter’s Distillery, Heaven Hill Brands, Nashville Barrel Company, Bardstown Bourbon Company, Wyoming Whiskey and Jos. A. Magnus. - The report includes links for a sample report, a purchase inquiry and analyst contact.

Between the lines: - The report frames bourbon as a premium category, not a volume drink, which helps explain why growth is tied to higher spending rather than broader consumption. - The shift toward premium and luxury whiskey suggests brands may compete more on craftsmanship, authenticity and digital engagement than on price. - Regulatory pressure remains a structural headwind, so growth may depend heavily on product positioning, export markets and non-traditional sales channels. - The emphasis on Asia-Pacific suggests producers see room for luxury bourbon expansion beyond mature U.S. and European markets.

What’s next: - The report expects premium bourbon demand to keep rising as consumers continue choosing premium ready-to-drink spirits and luxury whiskey. - Manufacturers are likely to expand e-commerce, export reach and premium product lines to capture that demand. - Growth in organic and innovative bourbon products may create additional opportunities for market share gains. - Industry expansion will still depend on how companies navigate advertising restrictions, shipping requirements and other alcohol regulations.

The bottom line: - Bourbon is benefiting from the premium spirits shift, but the category’s next leg of growth will depend on how well producers balance premiumization with regulation and changing drinking habits.