The spirits market is now worth £6bn, a 3.1% rise in the last 12 months, and is the second largest segment of the on-trade beer wine and spirits sector, with 24.6% of the market.
This growth has been driven primarily by premium spirits, which are now worth £836m, up 8.7%, as consumers trade up to improve their on-trade experiences.
The William Grant & Sons report also revealed that the total value of the beer wine and spirit sector stands at £24.4bn, up 1.4% from 12 months ago.
Increased offerings
Outlets continue to diversify and increase their offerings to consumers, with an average of 35 brands stocked per outlet, an increase of nearly 5% compared with last year.
The most popular on-trade spirit remains non-flavoured vodka, which holds 29.3% of the market share, followed by non-cream liqueurs and gin with 11.8% and 10.8% respectively.
Despite the growth of small-batch premium spirits sales, the most popular on-trade spirits brands by value and volume remain Smirnoff Red Label and Jägermeister, followed by Jack Daniels and Gordon’s London Dry Gin.
'An exciting time'
Commenting on the data, chief executive of the Wine and Spirit Trad Association Miles Beale said: “There has been a rapid growth in the number of distilleries in the UK, which last year were estimated to have reached 273, an increase of 135% since 2010.
"This is yet another positive sign of the UK spirits industry going from strength to strength. From traditional products like Scotch, to the Great British Gin boom and newer products like English and Welsh Whisky, it is an exciting time for spirits producers across the UK."
"Consumers here at home and around the world have developed a real thirst for top quality British spirits, and a new distillery is coming online at the equivalent rate of one per week to rise to that challenge."
Meanwhile, in June it was revealed that spirits sales generated more money for the Treasury than beer for the first time ever, fuelled by a 12% increase in gin sales.