Market Research Report
United States Spirits Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)
|Published by||Mordor Intelligence Pvt Ltd||Product code||924443|
|Published||Content info||114 Pages
Delivery time: 2-3 business days
|United States Spirits Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)|
|Published: April 21, 2021||Content info: 114 Pages||
The United States spirits market was valued at USD 68,154.8 million in 2020, and it is projected to register a CAGR of 5.02%, during the forecast period of 2021-2026.
COVID-19 restricted the movement of the consumer, in turn, affected entire business management systems, from supply chain to e-commerce adoption or expansion witnessed by rising off-premise alcohol sales and brands started using social media platform to keep the consumers connected, thereby COVID-19 has caused a massive influx in the number of active omnichannel off-premise buyers which could be a more opted channel post-COVID-19 too due to the convenience offered by the channel. Thus, despite plunging sales from bars and restaurants, Liquor store and online sales of spirits surged for instance Barret Liquors (Liquor store) in Louisville, Kentucky, sales surged 30% to 40% in 2020 as the pandemic took hold. Moreover, bourbon, Tennessee whiskey and rye whiskey sales rose by 8.2%, or USD 327 million, in 2020, as stated by the Distilled Spirits Council of the United States.
United States consumers today have more sophisticated palates than those of older generations. They are constantly looking to explore unique, high-quality alcoholic beverages. The inclusion of natural ingredients in alcoholic beverages improves their functionality and such products are gathering a lot of attention from consumers.
The increase in health awareness among people and promoted inclusion of functional and natural ingredients provide greater opportunity for the premium alcohol market. There has been humongous sales coming in from the foodservice industry over the recent past, with considerable sales coming from premium alcoholic beverages especially premium wine and whiskey.
Growing Demand for Premium Alcoholic Beverages
According to Distilled Spirits Council, American Rye in the spirits market recorded an increase in 15.9% in 1.1Million 9-liter cases in 2018 in the United States. This has led to the growth in demand for premium and super-premium whiskey in 9-liters cases. The market is driven by the increasing demand for new and exotic flavors in fortified wine. In United States, mostly consumers are starting to drink 'less-but-better' alcohol, generally with higher barley and malt contents. The major players operating in the market are expanding their product portfolio, with strategic acquisitions of breweries, in order to spread their footprints across the world and tap the premium alcoholic beverage market.
Whiskey holds the Largest Market Share in 2020
The increasing demand for premium whiskies with the rising number of super-premium brands and the fast-growing cocktail market are the key factors driving the growth of the American whiskey market. Also, consumers are highly inclined toward Japanese whiskey due to its high quality and taste. The demand for whiskies, such as Bourbon, Tennessee, and Rye, is growing significantly in the United States, additionally, the trend of smoky whiskey was witnessed in the American distilleries, thereby players are experimenting with new techniques of smoking barley and other grains, using regional hardwoods or American peat. Further, players in the market are concentrating on the packaging of the whiskey product as a point of sale. For instance, In 2020, Powers Irish whiskey unveiled its new bottle design to attract new generation consumers in the market.
The United States spirit industry is fragmented with the presence of several players. New product development, merger & acquisition strategies and expansion are some of the most preferred strategies for the spirit industry in the United States. The market studied is mostly dominated by players like Diageo PLC, Pernod Ricard, Suntory Holdings Limited, Bacardi Limited, and Sazerac and Company Inc., followed by the rest. The remaining market share is scattered among various players, such as E & J Gallo Winery, The Brown-Forman Corporation, and others.