Market Trends of United States Spirits Industry
Growing Demand for Premium Alcoholic Beverages
- As the economies continue to grow, consumers have more disposable income to spend on premium and super-premium spirits. In addition, the region is experiencing a shift in consumer preferences towards higher quality and more premium products. This is leading consumers to choose more expensive and higher-quality spirits over cheaper, lower-quality alternatives. The increasing demand for new and exotic flavors in fortified wine drives the market. In the United States, most consumers drink 'less but better' alcohol with higher barley and malt contents.
- The major players operating in the market are expanding their product portfolio with strategic acquisitions of breweries and partnerships with other players to spread their footprints worldwide and tap the premium alcoholic beverage market. For instance, in July 2022, as part of their collaboration, Diageo, one of the major global players in beverage alcohol, and Vita Coco Company, a non-alcoholic beverage company, launched a line of premium canned cocktails crafted with Captain Morgan rum and Vita Coco coconut water. Over the medium term, the demand for spirits is expected to increase owing to the increasing urbanization and increasing demand for innovative beverages.
Understand The Key Trends Shaping This Market
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Vodka Holds the Largest Market Share
- The growing demand for premium and super-premium vodka is one of the key drivers of the vodka market in the United States. Premium vodka is gaining preference among the sophisticated classes owing to increased urbanization, prompting customers to seek out distinctive and inventive drinking experiences. Moreover, vodka is considered a polarizing category of booze. According to the Distilled Spirits Council, it accounts for nearly a third of the industry's sales, and it is the most widely consumed liquor in the United States.
- Further, different promotional activities and campaigns carried out by the major players in the region are promoting awareness about high-end alcoholic beverages among consumers, pushing the trend of premiumization. Similarly, consumers are more curious than before and are willing to look outside of the traditional parameters and styles when purchasing vodka. 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. For instance, in March 2022, in a partnership with spirits producer Beam Suntory, Hard Seltzer, a Boston beer company-owned brand, introduced its truly flavored vodka to the market.
