Table of Contents
Executive Summary
-
- Top takeaways
- Market overview
-
- Figure 1: Total US sales and forecast of distilled spirits, at current prices, 2015-25
- Figure 2: Total US sales and forecast of distilled spirits, at current prices, 2015-25
- Impact of COVID-19 on spirits
-
- Figure 3: Short-, medium- and long-term impact of COVID-19 on spirits, November 2020
- Opportunities and Challenges
- Consumers focus on the familiar when facing uncertainty
-
- Figure 4: Alcohol purchasing behaviors during financial uncertainty among white spirit drinkers, September 2020
- Spirit brands feel the loss of on-premise revenues
-
- Figure 5: Spirit trial method, among white spirit drinkers, September 2020
- Brand heritage is important but not the only quality indicator
-
- Figure 6: Premium spirit indicators, by spirit consumer segmentation, September 2020
- Recovery
- (2022-25)
-
- Figure 7: Important spirit attributes, by age and HHI, September 2020
-
- Figure 8: Spirit product interest, by gender and age, September 2020
The Market – Key Takeaways
-
- Thriving market falls
- Macro-economic conditions are detrimental to the spirits market
- Better spirit choices
- Consumer social behaviors have changed
Market Size and Forecast
-
- Thriving market cut down by decline of on-premise sales
-
- Figure 9: Total US sales and forecast of distilled spirits, at current prices, 2015-2025
- Figure 10: Total US sales and forecast of distilled spirits, at current prices, 2015-25
-
- Figure 11: US unemployment rate, January 2007-November 2020
- Figure 12: Consumer sentiment index, January 2007-October 2020
- Figure 13: Consumer expenditure on alcohol for off- and on-premise consumption, 2005-2012
- Impact of COVID-19 on spirits
-
- Figure 14: Short-, medium and long term impact of COVID-19 on spirits, November 2020
- Lockdown
- Re-emergence
- Recovery
- COVID-19: US context
Segment Performance
-
- Tequila steals the show, but vodka remains the cornerstone of the spirits market
-
- Figure 15: US volume sales of white spirits, by type, 2015-23
-
- Figure 16: US volume sales of white spirits, by type, 2015-23
- Figure 17: US white spirit market share, by type, 2015-2019
Market Factors
-
- Economic uncertainty muddles the market
-
- Figure 18: US unemployment rate, January 2007-November 2020
- Figure 19: Consumer sentiment index, January 2007-October 2020
- Researchers urge revisions to alcohol guidelines
- Spirit brands lose crucial foodservice business
-
- Figure 20: Total US on-premise alcohol sales, at current prices, 2015-25
- Figure 21: Total US on-premise alcohol sales, at current prices, 2015-25
Market Opportunities
-
- Consumers adopt new social behaviors during the pandemic
-
- Figure 22: Activities during pandemic, September 2020
-
- Figure 23: Activities during pandemic, virtual happy hours, by generation, September 2020
- Online retailers can facilitate discovery
- Growing soft power of South Korea offers new opportunities
-
- Figure 24: Mentions of K-pop on social media channels, November 2017-September 2020
-
- Figure 25: Mentions of soju on social media channels, November 2017-September 2020
- Consumers are increasingly interested in BFY drinks
Companies and Brands – Key Takeaways
-
- Gin and tequila grow and innovate
- Vodka remains steady while rum stagnates
White Spirit Brand Performance
-
- Tito’s to become the number one vodka brand
-
- Figure 26: volume sales of vodka, top 15 brands, on and off premise, thousand 9-liter cases, % change 2018-19
- Gin is ready to take off
-
- Figure 27: volume sales of gin, top 15 brands, on and off premise, thousand 9-liter cases, % change 2018-19
- Rum is a whitespace category but struggles with its identity
-
- Figure 28: Volume sales of rum, top 15 brands, on- and off-premise, thousand 9-liter cases, % change 2018-19
- Premium tequila is a thriving category
-
- Figure 29: volume sales of tequila, top 15 brands, on and off premise, thousand 9-liter cases, % change 2018-19
Competitive Strategies
-
- Build upon tequila’s firm foundation
- Gin can provide a sense of place
- Aviation opens the door for American craft gin
- White spirit brands can it
- Paper packaging offers sustainable benefits
-
- Figure 30: Beverage packaging type associations, April 2020
The Consumer – Key Takeaways
-
- High-earning younger consumers are interested in BFY spirits
- Spirit preferences vary widely by age
- Consumers want to explore spirits on a budget
Alcohol Consumption
-
- White spirit consumption outpaces dark spirits
-
- Figure 31: Alcohol consumption, most vs also drink, September 2020
- Older consumers cut back on white spirits
-
- Figure 32: Alcohol consumption, by age and gender, any drink, September 2020
- Figure 33: Change in white spirit consumption, by age and gender, any drink, September 2019-September 2020
Alcohol Consumption by Occasion
-
- Spirits struggle from the loss of on-premise sales
-
- Figure 34: Alcohol consumption by occasion, by those who drink alcohol type, September 2020
White Spirit Purchases
-
- Mezcal makes moves
-
- Figure 35: Trended white spirit purchases, 2019-2020, September 2019; September 2020
- Party is on pause
-
- Figure 36: Trended white spirit purchases, by age and gender, 2019-2020, September 2019; September 2020
- Healthful Explorers driving spirit trends
-
- Figure 37: White spirit purchases, by spirit consumer segmentation, September 2020
- Tequila and gin can be aspirational spirits
-
- Figure 38: White spirit purchases, by HHI, September 2020
- Mezcal can make up ground among Hispanic consumers
-
- Figure 39: White spirit purchases, by race and ethnic origin, September 2020
Brand Tier Purchases
-
- Pandemic pushes consumers to the ends of the spectrum
-
- Figure 40: Brand tier purchases, 2019 vs 2020, September 2020
- Price is right for white spirit drinkers
-
- Figure 41: Brand tier purchases, among white spirit drinkers, September 2020
Spirit Format Consumption
-
- White spirit drinkers mix it up
-
- Figure 42: Spirit format consumption, any drink, among white spirit drinkers, September 2020
-
- Figure 43: Spirit format consumption, any drink, by white spirit type drinkers, September 2020
- Connect with the home bartender
-
- Figure 44: Spirit format consumption, any drink, by age, September 2020
- Create cocktail occasions
-
- Figure 45: Spirit format consumption, any drink, by spirit consumer segmentation, September 2020
Premium Spirit Indicators
-
- Awards and location resonate with white spirit drinkers
-
- Figure 46: Premium spirit indicators, among white spirit drinkers, September 2020
- Older consumers go for tradition, younger consumers check online
-
- Figure 47: Premium spirit indicators, by age, September 2020
- Heritage messages resonate with purists
-
- Figure 48: Premium spirit indicators, by spirit consumer segmentation, September 2020
-
- Figure 49: Premium spirit indicators, by white spirit type drinkers, September 2020
Premium Spirit Region Associations
-
- APAC spirits lag behind
-
- Figure 50: Regions associated with premium spirits, among white spirit drinkers, September 2020
- Young affluent consumers think globally
-
- Figure 51: Regions associated with premium spirits, by age and HHI, September 2020
New Spirit Trial
-
- Pandemic places barriers to new brand trial
-
- Figure 52: Spirit brand trial behaviors, among white spirit drinkers, September 2020
-
- Figure 53: Spirit brand trial behaviors, by white spirit type drinkers, September 2020
-
- Figure 54: Spirit trial method, among white spirit drinkers, September 2020
Important Spirit Attributes
-
- Health claims can be a differentiator
-
- Figure 55: Important spirit attributes, among white spirit drinkers, September 2020
-
- Figure 56: Important spirit attributes, by age and HHI, September 2020
- BFY claims appeal to trend-forward consumers
-
- Figure 57: Important spirit attributes, by spirit consumer segmentation, September 2020
Spirit Behaviors during Financial Uncertainty
-
- Consumers prioritize the familiar during uncertainty
-
- Figure 58: Spirit behaviors during financial uncertainty, among white spirit drinkers, September 2020
-
- Figure 59: Alcohol purchasing behaviors during financial uncertainty, by financial situation, September 2020
- Troubled times for on-premise sales
-
- Figure 60: Alcohol purchasing behaviors during financial uncertainty, by age, September 2020
Spirit Product Interest
-
- Think small and offer experiences
-
- Figure 61: Spirit product interest, among white spirit drinkers, September 2020
- Young consumers will be home bartenders
-
- Figure 62: Spirit product interest, by gender and age, September 2020
-
- Figure 63: Spirit product interest, by age and HHI, September 2020
- Make things simple for Situational Drinkers
-
- Figure 64: Spirit product interest, by spirit consumer segmentation, September 2020
- Leverage white rum consumers’ interest in cocktails
-
- Figure 65: Spirit product interest, by white spirit type drinkers, September 2020
Spirit Attitudes
-
- Now is the time for consumers to upgrade their home bar
-
- Figure 66: Spirit attitudes, any agree, among white spirit drinkers, September 2020
-
- Figure 67: Spirit attitudes, any agree, by age, September 2020
Appendix – Data Sources and Abbreviations
-
- Data sources
- Sales data
- Forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
Appendix – The Market
-
-
- Figure 68: Total US sales of distilled spirits, 2015-24
- Figure 69: US volume sales and forecast of white spirits, 2015-23
-
- Figure 70: Total US volume sales of white spirits, by segment, 2018 and 2020
- Figure 71: US volume sales of total distilled spirits, by channel, 2015-19
-
Appendix – Spirit Consumer Segmentation
-
- Segment definitions
- Healthful Explorers
- Spirit Purists
- Occasional Drinkers
- Situational Drinkers
Back to top