United States (USA) Whiskey Market Overview, 2028

United States (USA) Whiskey Market Overview, 2028

American whiskey is more than just a drink, it's a cultural icon, deeply intertwined with the fabric of American life. Its story is etched in the pages of history, where pioneering settlers and enterprising immigrants transformed simple grains into liquid gold, distilling dreams of prosperity and forging a path towards a better future. From the fertile fields of Kentucky to the rugged landscapes of Tennessee and beyond, the US has become synonymous with exceptional whiskey production. It is a land where the art of distillation has been perfected over generations, passed down from one skilled distiller to the next, ensuring that every drop embodies the essence of its origins. Each glass of American whiskey is a testament to the meticulous process that unfolds behind the scenes. From the careful selection of grains to the precise blending and aging in charred oak barrels, every step is taken with reverence for tradition and an unwavering commitment to quality. It is this dedication to time-honored techniques that sets American whiskey apart, delivering a symphony of flavors that dances in the glass and leaves a lasting impression. The popularity of whiskey has seen a remarkable resurgence in recent times, driven by factors such as an increased appreciation for craft spirits, a growing interest in mixology and cocktail culture, and a desire for premium and aged spirits. Whiskey bars and tasting events have become more prevalent across the country, catering to whiskey enthusiasts who seek unique and diverse offerings.

According to the research report United States Whiskey Market Overview, 2028, published by Bonafide Research, The United States Whiskey Market is expected to grow at above 5.31% CAGR from 2023 to 2028. In the late 18th century, the US government imposed a tax on whiskey to help pay off Revolutionary War debts. This led to a rebellion in 1791-1794 known as the Whiskey Rebellion, where distillers and farmers in western Pennsylvania protested against the tax. The rebellion was eventually quelled by federal forces, but it highlighted the contentious relationship between whiskey producers and the government. Bourbon, one of the most popular types of American whiskey, has a legal definition established by the U.S. Congress. According to the Federal Standards of Identity for Distilled Spirits, bourbon must be made from a grain mixture containing at least 51% corn, aged in new charred oak barrels, and distilled to no more than 160 proof (80% alcohol by volume). It must also be entered into the barrel for aging at no more than 125 proof (62.5% alcohol by volume) and bottled at a minimum of 80 proof (40% alcohol by volume). The aging process is crucial in whiskey production, and the US has strict regulations for labeling aged whiskey. For a whiskey to be labeled as straight, it must be aged in oak barrels for a minimum of two years. Also, many American whiskeys are aged for much longer periods, with some bourbons and rye whiskeys aging for 5 to 10 years or more. Different regions within the US have developed their own distinct whiskey styles. For instance, bourbon is closely associated with Kentucky, while rye whiskey has strong historical ties to the Northeastern states. Tennessee whiskey, known for its charcoal filtering process, is closely linked to the state of Tennessee. Whiskey collecting has become a popular hobby among enthusiasts. Limited edition releases, including single barrel and small batch expressions, often generate excitement and high demand in the market. Collectors seek out rare and unique bottles, contributing to a thriving secondary market for aged and collectible whiskeys.

In US, Corn is a staple grain in American whiskey production, particularly in the production of bourbon. By law, bourbon must be made from a grain mixture that is at least 51% corn. Corn contributes to the sweet and mellow profile associated with bourbon, imparting flavors such as caramel and vanilla. Barley is another essential grain in whiskey production. It contains enzymes that aid in the conversion of starches into fermentable sugars, an important step in the production process. Barley is used in varying proportions in different types of whiskey, such as Scotch whiskey, but it is also present in some American whiskeys. In addition, Rye, a grain known for its spiciness, is widely used in the production of American rye whiskey. Rye whiskey must be made from a grain mixture that is at least 51% rye. Rye imparts flavors such as pepper, cinnamon, and cloves, giving rye whiskey its distinct and robust character. List of popular distilleries in the US, along with their respective locations Maker's Mark - Loretto, Jack Daniel's - Lynchburg, Jim Beam - Clermont, Woodford Reserve - Versailles, Wild Turkey - Lawrenceburg, Buffalo Trace – Frankfort. Leading Domestic Brands of Whiskey in the US are Jack Daniel's, Jim Beam, Maker's Mark, Wild Turkey, Evan Williams. Also, some international brands are Johnnie Walker, Glenfiddich, The Macallan, Jameson, Bushmills, Talisker, Yamazaki, Hibiki, Laphroaig, Glenlivet. Whiskey is typically stored and aged in specific containers to enhance its flavor and character. In the United States, the containers are commonly used for whiskey storage are Oak Barrels, Casks, Hogsheads, Puncheons, Sherry Butts, Stainless Steel Tanks.

There are several types of whiskey produced in the United States, including bourbon, rye, corn, and Tennessee whiskey, each with its own distinct production methods and legal requirements. Bourbon, in particular, has gained widespread recognition as America's native spirit, and its production is regulated by law to ensure its authenticity. The US whiskey market has also witnessed a rise in the number of craft distilleries, which produce small-batch and artisanal whiskeys. These distilleries focus on quality, innovation, and often embrace traditional production methods to create unique flavor profiles. This trend has contributed to the overall growth of the market and has provided consumers with a broader selection of whiskey options. The international demand for American whiskey has been steadily increasing, with exports reaching new heights. Countries around the world have developed a taste for American whiskeys, appreciating their distinct flavors and craftsmanship. This global demand has opened up new opportunities for American distilleries to expand their reach and establish themselves in international markets. Also, the whiskey market in the US is highly competitive, with both established brands and emerging players vying for consumer attention. Brand reputation, quality, and differentiation are crucial factors in capturing market share and gaining consumer loyalty.

Considered in this report:
• Geography: United States
• Historic year: 2017
• Base year: 2022
• Estimated year: 2023
• Forecast year: 2028

Aspects covered in this report:
• United States Whiskey Market with its value and forecast along with its segments
• Various drivers and challenges
• On-going trends and developments
• Top profiled companies
• Strategic recommendation

By Grain Type:
• Malt/ Barley Whisky
• Wheat Whisky
• Rye Whisky
• Corn Whisky
• Blended Whisky
• Others

By Type:
• Scotch Whiskey
• American Whiskey
• Irish Whiskey
• Canadian Whiskey
• Japaneese Whiskey
• Others

By Quality:
• Premium
• High-End Premium
• Super Premium

By Beverage Type:
• Alcoholic
• Non-Alcoholic

By Flavor:
• Non-Flavored
• Flavored

By Distribution Channel:
• Off Trade
• On Trade

By Off Trade Distribution Channel:
• Supermarkets and Hypermarkets
• Liquor Stores
• Online Stores
• Others

By On Trade Distribution Channel:
• Hotels, Restaurants & Bars
• Others

By Age of Whisky:
• Below 12 Years
• 12 to 18 Years
• Above 18 Years

The approach of the report:
This report consists of a combined approach of primary as well as secondary research. Initially, secondary research was used to get an understanding of the market and listing out the companies that are present in the market. The secondary research consists of third-party sources such as press releases, annual report of companies, analyzing the government generated reports and databases. After gathering the data from secondary sources primary research was conducted by making telephonic interviews with the leading players about how the market is functioning and then conducted trade calls with dealers and distributors of the market. Post this we have started doing primary calls to consumers by equally segmenting consumers in regional aspects, tier aspects, age group, and gender. Once we have primary data with us. we have started verifying the details obtained from secondary sources.

Intended audience:
This report can be useful to industry consultants, manufacturers, suppliers, associations & organizations related to whiskey industry, government bodies and other stakeholders to align their market-centric strategies. In addition to marketing & presentations, it will also increase competitive knowledge about the industry.