Market Trends of North America Alcohol Ingredients Industry
This section covers the major market trends shaping the North America Alcohol Ingredients Market according to our research experts:
Growing Preference for Craft Spirits in the Region
Craft spirits are gaining popularity across the globe primarily in major consuming regions such as North America. The market is majorly driven by the demand from young consumers. These consumers seek authenticity in terms of quality and techniques used for manufacturing alcoholic beverages, such as spirits. Small-batch products are rising in popularity, as one in seven new products introduced in 2016 were craft or small batch spirits. As per studies by distilled spirits council, the number of distilleries has increased approximately 35% per year since 2011, while the craft spirits market has grown 19% per year since 2015. And while lagging the overall category penetration, the U.S. craft spirits market has grown by approximately 20% per year by value since 2012 and is forecast to grow by approximately 15%-20% per year through 2022.
United States Dominates the Market
Alcohol consumption is stagnating as consumers pay increasing attention to health and wellness, which has led to preferences for quality over quantity. The value category, bottles less than USD 12, fell slightly in terms of incremental growth, but high-end (USD 20-35) and super-premium (USD 35 and over) products showed strong growth in terms of case sales and gross supplier revenue.The growing preferences towards craft spirits owing to the inclination towards experimental drinking is also a major factor boosting the market in the country. There are currently more than 1,500 craft spirits distillers in the US, most heavily represented on the west coast.
