Bitters Market by Type (Cocktail Bitters, Aperitif Bitters, Digestif Bitters, Medicinal Bitters), by Applications Covered (Restaurant Service, Retail Service), & Region - Global Growth Insights forecast to 2032

Bitters market size was USD 12551.6 million in 2023 and is projected to touch USD 12997.18 million in 2024 to USD 16590.18 million by 2032, exhibiting a CAGR of 3.55% during the forecast period.

Bitters Market Overview

The global bitters market has witnessed significant growth in recent years, driven by an increasing interest in craft cocktails, premium alcoholic beverages, and the resurgence of classic cocktail culture. Bitters, a concentrated herbal infusion typically used as a flavoring agent in cocktails and other beverages, have become a staple in bars and restaurants worldwide. The market's expansion is also attributed to the growing consumer awareness of the health benefits associated with bitters. Traditionally used for their digestive properties, bitters are now recognized for their ability to enhance appetite, improve digestion, and offer a unique flavor profile to beverages.

One of the key factors driving the bitters market is the rising trend of mixology and the demand for craft cocktails. As consumers increasingly seek unique and personalized drinking experiences, bartenders and mixologists are incorporating bitters into their concoctions to add depth and complexity to their drinks. This trend is particularly strong in North America and Europe, where the craft cocktail movement has gained immense popularity. The proliferation of cocktail bars and speakeasies has further fueled the demand for bitters, as these establishments strive to offer innovative and high-quality drinks to their patrons.

The global bitters market is also witnessing increased competition, with both established brands and new entrants vying for market share. This has led to more aggressive marketing strategies, product promotions, and collaborations with bars and restaurants to increase brand visibility. As a result, consumers are becoming more familiar with bitters and their uses, further driving market growth.

COVID-19 Impact

The COVID-19 pandemic had a profound impact on the global bitters market, as it did on many other industries. The closure of bars, restaurants, and other hospitality venues during lockdowns significantly reduced the demand for bitters, particularly in the on-trade segment. The disruption in the supply chain also affected the production and distribution of bitters, leading to delays and shortages in the market.

As consumers became more health-conscious, they increasingly sought out products with natural ingredients and potential health benefits. Bitters, with their traditional association with digestive health, became more appealing to consumers looking for functional beverages. This trend was particularly evident in markets like North America and Europe, where the demand for health-focused products surged during the pandemic.

Bitters Market Recovery After COVID-19

As the world gradually recovers from the COVID-19 pandemic, the global bitters market is expected to regain its growth trajectory. The reopening of bars, restaurants, and other hospitality venues is likely to drive a resurgence in demand for bitters, particularly in the on-trade segment. With the easing of lockdown restrictions and the return of social gatherings, consumers are once again seeking out premium and craft cocktails, which bodes well for the bitters market.

One of the key factors contributing to the recovery of the bitters market is the continued growth of the home bartending trend. While the on-trade segment is expected to recover, the habits formed during the pandemic are likely to persist. Many consumers have developed a newfound interest in mixology and will continue to experiment with making cocktails at home. This sustained interest in home bartending is expected to drive retail sales of bitters, particularly through online channels.

Latest Trends

The bitters market is currently experiencing several key trends that are shaping its growth and development. One of the most significant trends is the rise of non-alcoholic bitters. As the demand for low and no-alcohol beverages grows, manufacturers are responding by introducing non-alcoholic bitters that can be used in mocktails and other alcohol-free beverages.

The craft cocktail movement continues to be a driving force in the bitters market, with bartenders and mixologists constantly seeking new and innovative ways to use bitters in their creations. This has led to a growing demand for unique and exotic bitters flavors, as well as an interest in artisanal and small-batch products. 

Online sales channels have become increasingly important for bitters manufacturers, particularly during the COVID-19 pandemic. E-commerce platforms offer consumers a convenient way to purchase bitters, often with a wider selection of products than what is available in brick-and-mortar stores. As more consumers turn to online shopping for their cocktail ingredients, bitters manufacturers are likely to continue investing in their e-commerce presence to reach a broader audience and drive sales.

Driving Factors

The growth of the global bitters market is fueled by several key driving factors, reflecting broader consumer trends and market dynamics. A significant driver is the increasing consumer interest in craft cocktails and artisanal beverages. As more consumers seek unique and sophisticated drinking experiences, the demand for high-quality ingredients, including bitters, has surged. Bartenders and mixologists are continually experimenting with bitters to create new and innovative cocktails, driving demand in both on-trade and off-trade channels. 

The global bitters market is also benefiting from the premiumization trend in the alcoholic beverages industry. Consumers are increasingly willing to pay a premium for high-quality, handcrafted products, and bitters are no exception. The growth of premium spirits, such as gin and whiskey, has created a demand for complementary ingredients like bitters that can enhance the drinking experience.

The expansion of e-commerce has also played a significant role in driving the bitters market. With the rise of online shopping, consumers have easier access to a wide range of bitters products, including niche and artisanal brands that may not be available in traditional retail outlets. The convenience of online shopping, combined with the ability to compare products and read reviews, has made it easier for consumers to discover and purchase bitters. 

Restraining Factors

Despite the positive growth outlook, the global bitters market faces several restraining factors that could hinder its expansion. One of the primary challenges is the high cost of production associated with bitters. Bitters are often made from a blend of botanicals, herbs, and spices, many of which are sourced from various parts of the world. 

Another restraining factor is the limited awareness and understanding of bitters among consumers in certain regions. While bitters are well-known in markets like North America and Europe, where the craft cocktail movement is strong, they remain relatively unknown in other parts of the world. 

The regulatory environment can also pose challenges for the bitters market. In some regions, the production and sale of alcoholic beverages, including bitters, are subject to strict regulations. Compliance with these regulations can be costly and time-consuming, particularly for small and artisanal producers. In some cases, regulatory hurdles can delay product launches or restrict market access, limiting the growth potential of the market.

Opportunities

The global bitters market presents several opportunities for growth, driven by evolving consumer preferences and market trends. One of the most significant opportunities lies in the development of new and innovative bitters flavors. As consumers increasingly seek unique and exotic taste experiences, there is a growing demand for bitters that go beyond traditional flavors.

The expansion of e-commerce and direct-to-consumer sales channels offers another opportunity for the bitters market. With more consumers turning to online platforms for their shopping needs, bitters manufacturers can leverage e-commerce to reach a wider audience and increase sales. By investing in their online presence, including social media marketing and influencer partnerships, manufacturers can raise awareness of their products and drive online sales. 

The global bitters market also presents opportunities for growth in emerging markets. As consumer preferences evolve in regions like Asia-Pacific and Latin America, there is a growing demand for premium and artisanal beverages, including bitters. Manufacturers can capitalize on this trend by expanding their distribution networks and entering new markets. By tailoring their products to local tastes and preferences, manufacturers can attract a new generation of consumers who are looking for unique and high-quality beverages.

Bitters Market Segmentation

• By Product Type: The bitters market can be segmented based on product type, including cocktail bitters, digestive bitters, medicinal bitters, and aromatic bitters. Cocktail bitters are the most popular segment, driven by the growing demand for craft cocktails. 

• By Flavor: The market can be segmented based on flavor, including traditional flavors such as Angostura and Peychaud's bitters, as well as new and exotic flavors like lavender, hibiscus, chocolate, and cardamom bitters.

• By Distribution Channel: The market can be segmented by distribution channel, including on-trade (bars, restaurants, and hotels) and off-trade (retail stores, supermarkets, and online platforms). 

• By Region: The bitters market can also be segmented by region, including North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. North America and Europe are the largest markets, driven by the strong craft cocktail culture and consumer demand for premium beverages. 

• By Packaging: The market can be segmented based on packaging type, including glass bottles, plastic bottles, and single-use sachets. Glass bottles are the most common packaging type, favored for their premium look and ability to preserve the product's quality. Plastic bottles are often used for larger, more cost-effective options, while single-use sachets are popular for on-the-go consumption and convenience.

Bitters Market Regional Insights

• North America: North America is one of the largest markets for bitters, driven by the strong craft cocktail culture in the United States and Canada. The region has a well-established cocktail scene, with consumers increasingly seeking unique and high-quality ingredients for their drinks.

• Europe: Europe is another major market for bitters, with countries like the UK, Germany, and Italy leading the way. The region's rich history of bitters production, combined with a strong cocktail culture, drives demand for both traditional and innovative bitters flavors. 

• Asia-Pacific: The Asia-Pacific region is an emerging market for bitters, with significant growth potential. The rising disposable incomes and evolving consumer preferences in countries like China, Japan, and India are driving demand for premium alcoholic beverages, including bitters.

• Latin America: Latin America is another emerging market with growth potential for bitters. The region has a strong tradition of herbal and botanical remedies, which aligns with the use of bitters for digestive health.

• Middle East & Africa: The Middle East & Africa region is a relatively small market for bitters, but it presents opportunities for growth. The region's growing tourism industry, particularly in countries like the UAE and South Africa, is driving demand for premium beverages, including bitters. 

Global Bitters Industry is Projected to be Fastest Growing Amongst Other Regions in the Bitters Market, in Terms of Value

The global bitters industry is projected to be the fastest growing amongst other regions in the bitters market, in terms of value. This growth is primarily driven by the increasing consumer demand for premium and artisanal beverages, as well as the rising interest in craft cocktails and mixology. The industry is expected to see significant growth in both developed and emerging markets, with North America and Europe leading the way.

In developed markets like North America and Europe, the bitters industry is benefiting from the well-established cocktail culture and the growing trend of home bartending. Consumers in these regions are increasingly seeking high-quality ingredients to enhance their drinking experiences, driving demand for bitters. The industry is also expected to see growth in the on-trade segment, as bars and restaurants reopen and social gatherings resume.

In emerging markets like Asia-Pacific and Latin America, the bitters industry is expected to experience rapid growth due to rising disposable incomes and evolving consumer preferences. As consumers in these regions become more exposed to Western-style cocktails and premium alcoholic beverages, the demand for bitters is expected to increase. The expansion of international brands into these markets and the increasing availability of bitters in retail stores are also expected to contribute to the industry's growth.

The global bitters industry is also expected to benefit from the ongoing trend towards health and wellness. As consumers become more health-conscious, the demand for natural and functional beverages, including bitters, is expected to rise. Manufacturers are likely to respond to this demand by introducing new products that highlight the health benefits of bitters, further driving the industry's growth.

Companies Update

• Gruppo Campari: Headquarters in Milan, Italy; Revenue: €1.98 billion (2023)
• Scrappy's Bitters: Headquarters in Seattle, USA; Revenue: $25 million (2023)
• Mast-Jägermeister: Headquarters in Wolfenbüttel, Germany; Revenue: €698 million (2023)
• Angostura Bitters: Headquarters in Port of Spain, Trinidad and Tobago; Revenue: $135 million (2023)
• Kuemmerling KG: Headquarters in Koblenz, Germany; Revenue: €45 million (2023)
• Stock Spirits Group PLC: Headquarters in Wooburn Green, UK; Revenue: €350 million (2023)
• Unicum: Headquarters in Budapest, Hungary; Revenue: HUF 30 billion (2023)
• Gammel Dansk: Headquarters in Copenhagen, Denmark; Revenue: DKK 120 million (2023)
• Underberg AG: Headquarters in Rheinberg, Germany; Revenue: €50 million (2023)
• Fratelli Branca: Headquarters in Milan, Italy; Revenue: €350 million (2023)
• Pernod Ricard (Ramazzotti, Fernet Capri): Headquarters in Paris, France; Revenue: €10.7 billion (2023)

Recent Developments

• Introduction of Non-Alcoholic Bitters: In 2023, several key players in the market, including Scrappy's Bitters and Angostura, introduced non-alcoholic versions of their popular bitters to cater to the growing demand for alcohol-free beverages.

• Sustainable Packaging Initiatives: Gruppo Campari and Mast-Jägermeister have announced their commitment to sustainability by introducing eco-friendly packaging solutions for their bitters products.

• Expansion into Emerging Markets: In 2023, Stock Spirits Group PLC expanded its distribution network into Asia-Pacific, targeting key markets such as China and India. 

• Collaboration with Craft Distilleries: In late 2023, Underberg AG collaborated with several small-batch craft distilleries in Europe to create limited-edition bitters that complement specific spirits. 

• Launch of New Flavors: Fratelli Branca introduced two new flavors of bitters in 2024—cherry and cinnamon—to tap into the growing demand for innovative and exotic flavors. 

Report Coverage of Bitters Market

The comprehensive report on the global bitters market offers an in-depth analysis of the industry's current landscape, trends, and future projections. The report covers various aspects of the market, including market size, growth drivers, challenges, opportunities, and competitive landscape.

The report also delves into the market segmentation, analyzing the bitters market by product type, flavor, distribution channel, and region. It provides insights into the performance of different segments and identifies the key drivers and challenges specific to each segment. For instance, the report highlights the growing demand for non-alcoholic bitters and the expanding online sales channels as significant trends shaping the market.

Moreover, the report provides an analysis of the market's future outlook, offering projections for market growth over the next five years. It includes forecasts for market size, growth rate, and revenue, helping stakeholders make informed decisions. The report also highlights the potential risks and uncertainties that could impact the market's growth, such as regulatory challenges and changing consumer preferences.

New Products

The bitters market has seen a wave of new product introductions, reflecting the industry's dynamic nature and the evolving preferences of consumers. In 2023 and 2024, several leading companies launched innovative products to cater to the growing demand for unique and high-quality bitters. 

One of the most notable new products is the launch of non-alcoholic bitters by several key players, including Scrappy's Bitters and Angostura. These products are designed to appeal to the increasing number of consumers who are seeking alcohol-free alternatives without compromising on flavor. 

 

Report Scope

The scope of the report on the global bitters market is extensive, covering all critical aspects of the industry to provide a comprehensive understanding of the market dynamics. The report is structured to offer insights into both the macro and micro factors that influence the market, making it a valuable resource for industry stakeholders, including manufacturers, investors, distributors, and retailers.

A significant part of the report is dedicated to market segmentation, where the bitters market is broken down by product type, flavor, distribution channel, and region. Each segment is analyzed in detail, with insights into its performance, growth potential, and key trends. For example, the report examines the growing demand for non-alcoholic bitters and the increasing popularity of online sales channels, providing data and analysis to support these trends.

The regional analysis section of the report covers the key markets for bitters, including North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The report provides insights into the market dynamics in each region, identifying the key drivers of growth and the challenges faced by market players.