The Water of Life and Death: A Brief Economic History of Spirits

Abstract Spirits represent around 50% of global alcohol consumption. This sector is much less studied than other alcoholic beverages such as wine or beer. paper reviews the economic history spirits and analyzes recent trends in markets. The technology to produce more complex for Distillation was known ancient Chinese, Indian, Greek, Egyptian societies, but it took innovations by Arabs distill alcohol. Initially, this used medicinal purposes. Only Middle Ages did become a widespread drink. Industrial Revolution created large consumer market reduced cost spirits, contributing excess consumption alcoholism. Governments have intervened extensively markets reduce excessive raise taxes. There been significant changes trade over time. Over past 50 years, share increased from 30% 50%. In decades, there strong growth emerging markets, including China India. Recent developments industry include premiumization, craft introduction terroir spirits. (JEL Classifications: L51, L66, N40, Q11, Q18)