United States Distilled Spirits Market SIZE AND SHARE ANALYSIS - GROWTH TRENDS AND FORECASTS (undefined)

United States Distilled Spirits Market is Segmented By Product Type (Whiskey, Vodka, Rum, Gin, Tequila, Brandy, Others), By Distribution Channel (Supermarkets, Hypermarkets, Specialty Stores, Drug Stores, Online, Others). The report offers the value (in USD billion) for the above-mentioned segments.

United States Distilled Spirits Market Size

Market Size in USD

CAGR5.2%

Study Period2024 - 2031
Base Year of Estimation2023
CAGR5.2%
Largest MarketU.S.
Market ConcentrationHigh
Major PlayersDiageo plc, Pernod-Ricard SA, Constellation Brands Inc., Brown-Forman Corporation, Remy Cointreau SA
*Disclaimer: Major players are listed in no particular order.
*Source: Coherent Market Insights
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United States Distilled Spirits Market Analysis

The U.S. distilled spirits market size is expected to reach US$ 8.2 Bn by 2031, from US$ 5.51 Bn in 2023, at a CAGR of 5.2% during the forecast period. The consumption of distilled spirits has been a tradition in the U.S. ever since colonial times. Distilled spirits are produced through a process of rapid fermentation and then distillation of various starch and sugary crops such as grains, fruits, or vegetables. With a growing preference for premium and super-premium brands, especially among millennials and Gen Z consumers, the market has expanded to include a wide variety of spirits made from different raw materials.

U.S. Distilled Spirits Market Drivers

  • Increase Demand for Alcoholic Beverages: The increasing demand for alcoholic beverages, particularly distilled spirits, is a significant driving factor for the U.S. distilled spirits’ market. This demand is fueled by several factors, including the growing consumer base, especially among young and steadily growing adult demographics, and the rising buying power of consumers. R&D in the manufacturing of distilled spirits plays an important role in the distilled spirits market, as demand for these products largely depends on changing tastes and preferences of consumers.
  • Improving Economic Conditions: As the U.S. economy continues to strengthen in the aftermath of the COVID-19 pandemic, consumers across the country are increasingly able to spend more freely on discretionary goods. Spirits manufacturers have directly benefited from this rising consumer confidence and spending power. With unemployment rates falling and wages gradually increasing over the past year, households now have greater ability and willingness to treat themselves by enjoying premium spirits either at home or in social settings like bars and restaurants. This economic recovery has created tailwinds for the distilled spirits industry that will keep revenues growing into the foreseeable future.

U.S. Distilled Spirits Market Restraints

  • Alcohol Consumption Causes a High Burden of Disease: Alcohol consumption causes a significant burden of disease, which negatively impacts the distilled spirit market in several ways. The harmful use of alcohol is associated with a range of health problems, including mental and behavioural disorders, major noncommunicable diseases, and injuries. It is estimated that 5.1% of the global burden of disease and injury is attributable to alcohol consumption.
  • Stringent Government Regulations: There are extensive restrictions imposed on marketing and advertising activities for distilled spirits producers. For example, the regulations do not allow printed content, TV, radio commercials or digital promotions that may attract the under-aged population. This heavily limits the scope of outreach for new product launches as well as awareness campaigns for existing brands. As per the 2020 data from WHO, nearly 30% of the target customers in the USA are in the legal drinking age group of 21-40 years. However, lack of promotions reduces the chances of them choosing distilled spirits over other alcoholic or non-alcoholic beverages.

U.S. Distilled Spirits Market Opportunity

  • E-Commerce Platforms Enabling Easy Availability: E-commerce platforms have significantly enhanced the availability of distilled spirits in the U.S. market by providing direct-to-consumer sales and geo-targeted marketing opportunities. Companies like Barcart help distilleries reach new markets and increase sales through e-commerce solutions.
  • Emergence of craft and specialty distilled spirits: The emergence of craft and specialty distilled spirits has truly opened up a great market opportunity in the U.S. distilled spirits industry. In recent years, Americans have shown a growing desire to experiment with unique, small-batch artisanal spirits that offer new flavors and experiences beyond the standard beer, wine, and liquor offerings. This trend has allowed many small, independent distilleries to flourish across the country in both rural and urban areas.