US Alcoholic Beverage Market – Overview
As of 2021, the total share of the beverage alcohol category in the U.S. represented almost $250 billion and over 3.4 billion cases sold. Beer/FMB/hard seltzer accounted for 43.5% of value share, followed closely by spirits at 39.5% share, and wine at 17% share. In volume terms, beer/FMB/hard seltzer was responsible for over 80% of sales, while wine and spirits accounted for 10% and 8% respectively.
Distilled spirits are the fastest growing of the three categories, with a 2.6% compound annual growth rate (CAGR) over the last ten years. The largest sub-category of spirits is vodka with 30.6% of cases sold, followed by whiskey with 25.6%. Tequila and prepared cocktails are increasing their share at the fastest annual pace, up 10.7% and 20.6% respectively.
Approximately, 70% of wine cases sold are domestically produced wines and 20% are imported wines. Champagnes and sparkling wines make up around 7.5% of the wine volume.
US MARKET UNIVERSE OF WINE AND SPIRITS
US Wine Sales by Volume 2021
US Spirits Sales by Volume 2021
Spirits Lead Category Growth Over Wine & Beer
The wine and spirits categories both have experienced steady growth since 2011, with spirits leading both value and volume growth rates. The spirits segment volume has grown at a 2.6% CAGR over the last 10 years while revenues outpace this growth with a 3.7% CAGR. The wine segment has also grown steadily at a CAGR of 3.5% over the last ten years in revenues and a CAGR of 0.9% in volume.
US Alcohol Revenues by Category
Billions, USD
Source: Beverage Information Group, Park Street Analyses
Millions, 9L Cases
Source: Beverage Information Group, Park Street Analyses
STATE CONSUMPTION BREAKDOWN
Open States account for 81% of wine sales and 77% for spirits, the remainder are sold into control states. The largest markets for spirits are California, Florida, and Texas. The largest markets for wine are California, Florida and New York.
Volume of Spirits Sold in Open & Control States (2021)
Millions, 9L Cases
Source: Beverage Information Group, Park Street Analyses
Millions, 9L Cases
Source: Beverage Information Group, Park Street Analyses
Millions, 9L Cases
Source: Beverage Information Group, Park Street Analyses
Millions, 9L Cases
Source: Beverage Information Group, Park Street Analyses
Millions, 9L Cases
Source: Beverage Information Group, Park Street Analyses
Millions, 9L Cases
Source: Beverage Information Group, Park Street Analyses
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 2016 to 2021, craft spirits volumes have grown from 2.6% to 4.9% while values grew to 7.5% from 3.8%.
Craft Distiller Sales as a Share of Total US Spirits Volume and Value (2021)
Source: TTB, ACSA, IWSR, State ABC Boards, State Guilds, Team Analyses
Premium sector increasing exponentially
Over the course of 2021, premium and ultra-tier spirit brands saw significant growth while value and mid-tier brands actually saw a drop from 2020. Part of this 2021 growth represented a return to normal from 2020, where spirits volumes saw their largest jump since 1990 during the pandemic, according to IWSR. Spirits’ share of the total beverage alcohol value pool is predicted to rise from 35% in 2021 to 42% in 2026.
Spirits Price Segment Performance (2021)
Source: Nielsen, Park Street Analyses
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