United States Spirits Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

United States Spirits Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)

The US spirits market is projected to register a CAGR of 5.02% during the forecast period of 2022-2027.

The consumer movement is restricted due to COVID-19, which impacted entire business management systems, from supply chain to e-commerce adoption or expansion, as evidenced by rising off-premise alcohol sales and brands starting to use social media platforms to keep consumers connected. As a result, COVID-19 has resulted in a massive influx in the number of active omnichannel off-premise buyers, which could be a more preferred channel post-COVID-19 due to the convenience offered by the channel. Thus, despite plunging sales from bars and restaurants, Liquor stores and online sales of spirits surged. Moreover, vodka sales rose by 4.9% in 2021, as stated by the Distilled Spirits Council of United States.

Consumers in United States today have more developed palates than previous generations. They are always on the lookout for new and interesting alcoholic beverages. Natural components in alcoholic beverages improve their functionality, and customers are becoming increasingly interested in such goods.

The premium alcohol market has more opportunities as consumers become more health-conscious and support the use of functional and natural ingredients. There have 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.

According to Distilled Spirits Council, American Rye in the spirits market recorded an increase of 7.27 % over the 10 years and 1.7% than the previous year in 2021 in United States. This led to the growth in demand for premium and super-premium vodka in 9-liter cases. The market is driven by the increasing demand for new and exotic flavors in fortified wine. In United States, most 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.

The increasing demand for premium vodkas, the rising number of super-premium brands, and the fast-growing cocktail market are the key factors driving the growth of the American Vodka market. Vodka forms one of the most popular spirits segments in the US spirits industry due to its versatility. The vodka market is extremely competitive for both domestic and imported brands. Thus, key players selling vodka introduced new vodka flavors to attract more consumers in the region. 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.

The US spirit industry is fragmented with the presence of several players. New product development, merger and acquisition strategies, and expansion are some of the most preferred strategies for the spirit industry in 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 players such as E & J Gallo Winery and The Brown–Forman Corporation.

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