United States Spirits Market Size
| Study Period | 2019-2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 83.41 Billion |
| Market Size (2029) | USD 107.84 Billion |
| CAGR (2024 - 2029) | 5.27 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Need a report that reflects how COVID-19 has impacted this market and its growth?
United States Spirits Market Analysis
The United States Spirits Market size is estimated at USD 83.41 billion in 2024, and is expected to reach USD 107.84 billion by 2029, growing at a CAGR of 5.27% during the forecast period (2024-2029).
- The market has been growing in the United States due to the growing demand for premium products. Consumers are drinking less but consuming better and more premium drinks, which creates an ideal market position for a super-premium brand due to the sophistication of their palates over those of older generations. Spirit brands with enhanced brand experiences have become increasingly popular among consumers.
- Additionally, after the pandemic, there has been a major influx of active omnichannel off-premise buyers in the United States. This is due to the convenience and ease of using an off-premise channel that has become more preferred. Thus, liquor stores and online sales of spirits surged. For instance, according to the United States Distilled Spirits Council (USDSC), vodka sales increased by 4.9% in 2021.
- Additionally, American consumers have increased their demand for ethnic-flavored spirits, which include craft and artisanal varieties, which has contributed to the growth of the spirits market in the last few years. The craft spirits boom has flooded the market with thousands of new brands that have successfully carved out a niche by leveraging package designs that promise quality through evocative design and hand-crafted sensibilities.
- Furthermore, as a result of creative advertising campaigns and innovations in the market, small players in the market are increasing their sales and expanding their market share in the country. Over the medium term, the demand for spirits is expected to increase owing to the increasing demand for premium spirits and increasing product innovation as well.
United States Spirits Market Trends
Growing Demand for Premium Alcoholic Beverages
- As the economies continue to grow, consumers have more disposable income to spend on premium and super-premium spirits. In addition, the region is experiencing a shift in consumer preferences towards higher quality and more premium products. This is leading consumers to choose more expensive and higher-quality spirits over cheaper, lower-quality alternatives. The increasing demand for new and exotic flavors in fortified wine drives the market. In the United States, most consumers drink 'less but better' alcohol with higher barley and malt contents.
- The major players operating in the market are expanding their product portfolio with strategic acquisitions of breweries and partnerships with other players to spread their footprints worldwide and tap the premium alcoholic beverage market. For instance, in July 2022, as part of their collaboration, Diageo, one of the major global players in beverage alcohol, and Vita Coco Company, a non-alcoholic beverage company, launched a line of premium canned cocktails crafted with Captain Morgan rum and Vita Coco coconut water. Over the medium term, the demand for spirits is expected to increase owing to the increasing urbanization and increasing demand for innovative beverages.
Vodka Holds the Largest Market Share
- The growing demand for premium and super-premium vodka is one of the key drivers of the vodka market in the United States. Premium vodka is gaining preference among the sophisticated classes owing to increased urbanization, prompting customers to seek out distinctive and inventive drinking experiences. Moreover, vodka is considered a polarizing category of booze. According to the Distilled Spirits Council, it accounts for nearly a third of the industry's sales, and it is the most widely consumed liquor in the United States.
- Further, different promotional activities and campaigns carried out by the major players in the region are promoting awareness about high-end alcoholic beverages among consumers, pushing the trend of premiumization. Similarly, consumers are more curious than before and are willing to look outside of the traditional parameters and styles when purchasing vodka. Nevertheless, there has been a boom in the sales of craft vodka, owing to creative advertising campaigns and innovations by the key players in the market. For instance, in March 2022, in a partnership with spirits producer Beam Suntory, Hard Seltzer, a Boston beer company-owned brand, introduced its truly flavored vodka to the market.
United States Spirits Industry Overview
The United States spirit industry is fragmented with the presence of several players. A few major players in the market include Diageo plc, Suntory Beverage & Food Limited, Bacardi Limited, Sazerac Company, and Pernod Ricard SA. New product development, merger and acquisition strategies, and expansion are some of the most preferred strategies for the spirit industry in the United States. For instance, in August 2022, Bacardi Rum unveiled its new limited-edition Reserva Ocho Rye Cask Finish rum, the second installment in the Bacardi limited-edition Cask Finish series.
United States Spirits Market Leaders
-
Diageo plc
-
Suntory Beverage & Food Limited
-
Bacardi Limited
-
Sazerac company
-
Pernod Ricard SA
*Disclaimer: Major Players sorted in no particular order
United States Spirits Market News
- March 2023: Constellation Brands, partnered with Tastemade, a modern media company, to launch a first-of-its-kind content studio that will create and distribute social and streaming content to drive consumer engagement globally for Constellation Brands Wine & Spirits.
- November 2022: Pernod Ricard USA announced plans to invest USD 22 million in creating its first-ever ready-to-drink (RTD) canning line located at its Fort Smith plant in Arkansas, boosting its ability to bring RTDs to market swiftly.
- October 2022: Smirnoff Vodka partnered with Gorillaz, the Diago Plc brand, and released new cocktails along with a limited-edition bottle designed by band members for Gorillaz. The limited-edition bottle is a reimagining of Smirnoff's no. 21 classic vodka.
US Spirits Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
-
4.1 Market Drivers
- 4.1.1 Increasing Demand for Flavored Spirits
- 4.1.2 Growing Consumption of Premium Alcoholic Beverages
-
4.2 Market Restraints
- 4.2.1 Stringent Government Regulations Pertaining to Spirits
-
4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
-
5.1 Type
- 5.1.1 Whiskey
- 5.1.2 Vodka
- 5.1.3 Rum
- 5.1.4 Brandy
- 5.1.5 Gin
- 5.1.6 Other Spirits
-
5.2 Distribution Channel
- 5.2.1 Off-trade
- 5.2.1.1 Specialist Retailers
- 5.2.1.2 Supermarkets/Hypermarkets
- 5.2.1.3 Online Retail
- 5.2.1.4 Other Channels
- 5.2.2 On-trade
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
-
6.3 Company Profiles
- 6.3.1 Diageo PLC
- 6.3.2 Suntory Holdings Limited
- 6.3.3 Bacardi Limited
- 6.3.4 Pernod Ricard
- 6.3.5 Sazerac Company Inc.
- 6.3.6 Constellation Brands Inc.
- 6.3.7 The Brown-Forman Corporation
- 6.3.8 E & J Gallo Winery
- 6.3.9 Asahi Group Holdings, Ltd.
- 6.3.10 Heaven Hill Distilleries Inc.
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityUnited States Spirits Industry Segmentation
Spirits are distilled and have higher average alcohol by volume (ABV), from around 20% to as high as 80 or 90%.
The United States spirits market is segmented by type into whiskey, rum, vodka, brandy, gin, and other spirits. Based on the distribution channel, the market is segmented into off-trade and on-trade. The on-trade segment is further divided into specialist retailers, supermarkets/hypermarkets, online retail, and other channels.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Type | Whiskey | |
| Vodka | ||
| Rum | ||
| Brandy | ||
| Gin | ||
| Other Spirits | ||
| Distribution Channel | Off-trade | Specialist Retailers |
| Supermarkets/Hypermarkets | ||
| Online Retail | ||
| Other Channels | ||
| Distribution Channel | On-trade |
US Spirits Market Research FAQs
How big is the United States Spirits Market?
The United States Spirits Market size is expected to reach USD 83.41 billion in 2024 and grow at a CAGR of 5.27% to reach USD 107.84 billion by 2029.
What is the current United States Spirits Market size?
In 2024, the United States Spirits Market size is expected to reach USD 83.41 billion.
Who are the key players in United States Spirits Market?
Diageo plc, Suntory Beverage & Food Limited, Bacardi Limited, Sazerac company and Pernod Ricard SA are the major companies operating in the United States Spirits Market.
What years does this United States Spirits Market cover, and what was the market size in 2023?
In 2023, the United States Spirits Market size was estimated at USD 79.01 billion. The report covers the United States Spirits Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the United States Spirits Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
US Spirits Industry Report
The United States Distilled Spirits Market Report is segmented by type and distribution channel. The report offers a market overview, providing a comprehensive market analysis and industry analysis for various types of distilled spirits, including whiskey, vodka, rum, brandy, gin, and other spirits. The market segmentation also includes an examination of off-trade and on-trade distribution channels.
The report includes industry trends, industry statistics, and a detailed market forecast. It highlights the market growth and market value, offering insights into the industry outlook and market outlook. The analysis covers the market size in value terms, providing a market review and market predictions for the US spirits market.
Industry reports and industry research are essential components of this report, offering valuable information for research companies and market leaders. The report also features a report example and a report pdf for further reference. The industry information provided includes industry sales, industry size, and industry statistics, ensuring a comprehensive understanding of the market dynamics.
The market data and market forecast are crucial for understanding the market growth and market segmentation. The report also includes market leaders and their contributions to the industry. With a focus on industry trends and market predictions, the report provides a detailed market overview and market review.
Overall, this report is an invaluable resource for understanding the US spirits market, offering detailed insights into market value, market segmentation, and industry statistics. The report pdf and report example provide additional resources for further analysis and research.
