Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- Overview
- White spirits enjoy strong and steady volume growth
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- Figure 1: Total US volume sales and fan chart forecast of white spirits, 2012-22
- The issues
- Spirits, cocktails, mixed drinks come second to beer and wine
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- Figure 2: Alcohol associations, August 2017
- Dark spirits rise in popularity
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- Figure 3: US volume sales of dark spirits, by segment 2012-22
- Gin lacks associations needed to gain appeal
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- Figure 4: Spirit associations, August 2017
- The opportunities
- Consumers cutting back on alcohol, offer a solution
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- Figure 5: Reasons for drinking less white spirits, August 2017
- Younger consumers drink for fun, drive segment growth
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- Figure 6: Motivations for drinking alcohol, by gender and age, August 2017
- Gin consumers see themselves knowledgeable, older Millennials a strong target
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- Figure 7: Attitudes toward spirits, by white spirit consumption, August 2017
- What it means
The Market – What You Need to Know
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- White spirits aid in driving distilled spirits market
- Vodka unwaveringly dominates white spirits, tequila posts largest gains
- Advertising opportunities and celeb associations grow awareness, beer and wine still limit total growth
- Total US population ages, drinks less
Market Size and Forecast
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- Distilled spirits dollar sales continue to soar
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- Figure 8: Total US sales and fan chart forecast of distilled spirits, at current prices, 2012-22
- Figure 9: Total US sales and forecast of distilled spirits, at current prices, 2012-22
- Historic and projected volume sales performance of white spirits
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- Figure 10: Total US volume sales and fan chart forecast of white spirits, 2012-22
- Figure 11: US volume sales of white spirits, 2012-22
Market Breakdown
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- Vodka continues to dominate category, tequila shows growth
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- Figure 12: US volume sales of white spirits, by segment, 2017
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- Figure 13: Sales of white spirits, by segment, 2012-2022
- At-home consumption pivotal in the spirits category
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- Figure 14: US volume sales of dark and white distilled spirits, percentage change by channel, 2012-16
- Figure 15: Where consumers drink liquor, trended 2012-17
Market Perspective
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- Popularity rising for all things dark spirits
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- Figure 16: US volume sales of dark spirits, by segment 2012-22
- Liquor advertisements allowed in NFL challenge beer’s stronghold
- Cocktails and spirits come second to beer and wine
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- Figure 17: Alcohol associations, August 2017
Market Factors
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- Total alcohol consumption goes down, spending goes up
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- Figure 18: Total on-premise market volume consumption per capita, total alcohol, 2011-20
- Median age rises, driving change in behavior
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- Figure 19: Median age of the population, 1940-2050
Key Players – What You Need to Know
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- Vodka and tequila brands showed strongest movement toward premium trend
- Premium spirits drive brand growth, unflavored vodkas gain attention
- Domestic gins drag segment down
- Craft spirits to continue to spark category interest
Company and Brand Sales of White Spirits
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- Domestic vodka brands provide quality-driven growth
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- Figure 20: Vodka consumed in the past 30 days, by brand, trended 2012-17
- Tequila brands see growth across the board
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- Figure 21: Tequila consumed in the past 30 days, by brand, trended 2012-17
- Bacardi leads the segment, though rum brands may be missing out on key trends
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- Figure 22: White/light rum consumed in the past 30 days, by brand, trended 2012-17
- Imported gin brands a bright spot in a falling segment
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- Figure 23: Gin consumed in the past 30 days, by brand, trended 2012-17
What’s Working?
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- Premium spirits
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- Figure 24: Percent US white spirit entries (gin, white rum, tequila, vodka) with premium positioning claims, Jan 2009 – Nov 2017
- High-quality, unflavored vodka
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- Figure 25: US vodka entries, percent of entries by flavor, Jan 2012-Nov 2017
- Celebrity endorsements break through the clutter
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- Figure 26: Chrissy Teigen Blue World | Only the Best for Everyone | Smirnoff, May 2017
What’s Struggling?
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- Domestic gin struggles to find footing
What’s Next?
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- Farm-to-glass spirits
The Consumer – What You Need to Know
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- Unflavored vodka a favorite among consumers, women prefer flavors
- As consumption stalls, category growth may be limited
- Relaxation drives alcohol consumption, secondary motivations vary
- Cocktails encourage spirit exploration, though limited at home
- Reason for drinking determines spirit decisions
- Strong spring and summer sparks in consumption benefit white spirits
- Lacking associations, gin loses to the rest of the category
- Regardless of value, liquor stores drive spirit purchases
White Spirits Consumption
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- Unflavored vodka carries highest reach
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- Figure 27: White spirit consumption, August 2017
- Flavored vodkas appeal to women
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- Figure 28: White spirit consumption, by gender, August 2017
- Gin, white/light rums appeal to an older Millennial palate
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- Figure 29: White spirit consumption, by Millennial status, August 2017
- Multicultural consumers an especially strong target
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- Figure 30: White spirit consumption, by race and Hispanic origin, August 2017
Shifts in White Spirit Consumption
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- Nine in 10 consumers stalling or decreasing consumption
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- Figure 31: Shifts in white spirit consumption, August 2017
- 35-44-year-olds show opportunity for growth
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- Figure 32: Shifts in white spirit consumption, by age, August 2017
- Parents more likely to have increased consumption
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- Figure 33: Shifts in white spirit consumption, by gender and parent status, August 2017
- Reasons for drinking more
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- Figure 34: Reasons for drinking more white spirits, August 2017
- Reasons for drinking less
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- Figure 35: Reasons for drinking less white spirits, August 2017
Motivations for Drinking Alcohol
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- Relaxation is the main reason consumers imbibe
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- Figure 36: Motivations for drinking alcohol, August 2017
- Motivations fluctuate per white spirit consumed
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- Figure 37: Motivations for drinking alcohol, by dark and white spirit consumption, August 2017
- With age comes an appreciation for taste and indulgence
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- Figure 38: Motivations for drinking alcohol, by gender and age, August 2017
- Parents turn to alcohol for fun
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- Figure 39: Motivations for drinking alcohol, by gender and parent status, August 2017
Attitudes Toward Spirits
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- Cocktails a good way to introduce new spirits
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- Figure 40: Attitudes toward spirits - White spirits rebase, August 2017
- Gin consumers see themselves as more knowledgeable, effects their approach to spirits
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- Figure 41: Attitudes toward spirits – part 1, by white spirit consumption, August 2017
- White rum drinkers explore cocktail creation
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- Figure 42: Attitudes toward spirits – part 2, by white spirit consumption, August 2017
- Younger drinkers more adventurous in at-home cocktail creation
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- Figure 43: Attitudes toward spirits - White spirits rebase, by Millennial status, August 2017
Deciding Which Spirit to Drink
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- Why they drink determines what spirit they drink
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- Figure 44: Spirit decision making - White spirits rebase, August 2017
- Women may be more swayed by what they have on hand
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- Figure 45: Spirit decision making - White spirits rebase, any rank, by gender, August 2017
- Word of mouth goes a long way for Millennials…
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- Figure 46: Spirit decision making - White spirits rebase, any rank, by Millennial status, August 2017
- …and Hispanics
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- Figure 47: Spirit decision making - White spirits rebase, any rank, by Hispanic origin, August 2017
Seasonality of Spirits
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- White spirit consumption peaks in summer months
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- Figure 48: Seasonality of spirits, August 2017
- Tequila shows the strongest seasonal spike
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- Figure 49: Seasonality of spirits, by white spirit type, August 2017
White Spirit Associations
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- Gin lacks associations, lags behind vodka and tequila
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- Figure 50: Spirit associations, August 2017
- Young men keen on high-quality tequila
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- Figure 51: Spirit associations – tequila, by gender and age, August 2017
- Vodka is Black consumers’ go-to for fun and good taste
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- Figure 52: Spirit associations - vodka, by race and Hispanic origin, August 2017
- Millennials have higher associations with gin, though some conflicting
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- Figure 53: Spirit associations – Gin, by Millennial status, August 2017
- White/light rums appeal based on affordability more than quality for young consumers
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- Figure 54: Spirit associations – White/light rum, by age, August 2017
Purchase Location of Spirits
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- Liquor stores drive majority of sales regardless of value
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- Figure 55: Purchase location, August 2017
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- Figure 56: Purchase location – Do not purchase, August 2017
- Consumers not restricted to ABC stores broaden their search, especially in western US
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- Figure 57: Purchase location, by region, August 2017
- Older Millennials shop for value spirits wherever convenient
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- Figure 58: Purchase location, value spirits, by older and younger Millennials, August 2017
- Hispanics open to purchasing in more channels
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- Figure 59: Purchase location, by Hispanic origin, August 2017
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – The Market
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- Figure 60: Total US sales and forecast of distilled spirits, at inflation-adjusted prices, 2012-22
- Figure 61: US volume sales and forecast of white spirits, by segment, 2012-22
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- Figure 62: US volume sales of white spirits, by segment, 2015 and 2017
- Figure 63: Total US volume sales and fan chart forecast of vodka, 2012-22
- Figure 64: Total US volume sales and fan chart forecast of rum, 2012-22
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- Figure 65: Total US volume sales and fan chart forecast of gin, 2012-22
- Figure 66: Total US volume sales and fan chart forecast of tequila, 2012-22
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