A valuable asset for driving growth.
Joe Santos
Co-Founder, Brooklyn Gin


US Alcoholic Beverage Market – Overview

In 2023, the beverage alcohol category sold nearly 2.8 billion nine-liter cases. Spirits accounted for 42.2% of the value share, followed closely by beer at 41.8% share and wine at just over 16% share. In volume terms, beer was responsible for 77% of sales, while wine and spirits accounted for 12% and 11%, respectively.

Distilled spirits are the fastest-growing category, with a 5.7% compound annual growth rate (CAGR) over a five-year period. The largest sub-category of spirits is vodka, with 26% of cases sold, followed by whiskey with 22%. However, tequila and RTDs rapidly increased their share of the category over the last year, with volumes rising by 6% and 35%, respectively.

Over 75% of wine cases sold are domestically produced wines, while approximately 24% are imported wines. Champagne and sparkling wines make up almost 8% of wine volume.

US MARKET UNIVERSE OF WINE AND SPIRITS

US Wine Sales by Volume 2023

Imported Table Wine
Domestic Table Wine
Sparkling
Dessert & Fortified
Vermouth/Aperitif
19.3%70.1%8.1%
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US Spirits Sales by Volume 2023
Vodka
Whisky
Ready-to-Drink (RTDs)
Tequila
Cordials/Liqueurs
Rum
Brandy & Cognac
Gin
26.2%22.2%18.1%10.1%9.4%7%4%3%
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Spirits Lead Category Growth Over Wine & Beer

Spirits segment volumes have grown at a 3.7% CAGR over the last 10 years, while the wine segment has seen slower volume growth at 0.5%.

US Alcohol Retail Sales by Volume
Millions, 9L Cases
Source: Beverage Information Group, Park Street Analyses

Spirits
Wine
2013201320232023209300325341360270180900
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STATE CONSUMPTION BREAKDOWN

Open States account for 81% of wine sales and 80% of spirits sales; the remainder are sold into control states. The largest markets for spirits are California, Florida, and Texas. The largest wine markets are California, Florida, and New York.

Volume of Spirits Sold in Open & Control States (2023)
Millions, 9L Cases
Source: Beverage Information Group, Park Street Analyses

Control States
Open States
20%80%
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Volume of Wine Sold in Open & Control States (2023)
Millions, 9L Cases

Source: Beverage Information Group, Park Street Analyses

Control States
Open States
19%81%
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Open States with Most Spirits Sales (2023)
Millions, 9L Cases

Source: Beverage Information Group, Park Street Analyses

California
Florida
Texas
New York
Illinois
All Others
17.8%10.5%9.1%7.6%5.6%49.4%
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Open States with Most Wine Sales (2023)
Millions, 9L Cases

Source: Beverage Information Group, Park Street Analyses

California
Florida
New York
Illinois
New Jersey
All Others
23.3%10.2%10.1%5.8%5.5%45.1%
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Control States with the Most Spirits Sales (2023)
Millions, 9L Cases

Source: Beverage Information Group, Park Street Analyses

Pennsylvania
Michigan
North Carolina
Ohio
Virginia
All Others
15.4%14.7%12.5%11.5%9.5%36.4%
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Control States with the Most Wine Sales (2023)
Millions, 9L Cases

Source: Beverage Information Group, Park Street Analyses

Virginia
Ohio
Pennsylvania
Michigan
North Carolina
All Others
15%14.8%13.9%13%10.7%32.6%
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SMALLER BRANDS HAVE BEEN GAINING SHARE

Over the last decade, craft distillers have been gaining an increased share of the overall U.S. spirits market. From 2017 to 2022, craft spirits volumes grew from 3.2% to 4.9%, while values grew to 7.7% from 4.6%. However, 2023 saw the segment take a slight step back in share, with value dropping to 7.5% share and volume seeing a dip down to 4.6%.

Craft Distiller Sales as a Share of Total US Spirits Volume and Value (2023)
Source: TTB, ACSA, IWSR, State ABC Boards, State Guilds, Team Analyses

Share Volume(%)
Share Value(%)
20172017 2018 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 20233.23.94.64.74.94.94.64.65.86.97.17.57.77.586420
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Premium Sector Driving Spirits’ Value Growth

Source: IWSR

Spirits sales at the Premium price tier ($22.50 to $30.50 per 750mL bottle) lost momentum in 2023, contrasting with a persistent growth trend in the Super-Premium price tier ($30 to $45 per 750mL bottle) and above, which has been expanding consistently for two decades, with only brief interruptions during the 2009 global financial crisis and the first year of Covid in 2020.

Super-premium spirits are now attracting a more diverse consumer base of younger, increasingly female middle-income drinkers with adventurous tastes and a strong connection to cocktail culture, complementing the traditional older, male, higher-income market segment.

Share of Total vs. Super-Premium+ Spirits

Total
Super-Premium+ Spirits
BoomerBoomer GenX GenX Millennials Millennials GenZ GenZ3125349232544850403020100
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