Impact Databank: Premixed Cocktails To Propel U.S. Spirits Category To 29th Straight Increase
September 30, 2024While inventory issues and inflation have hampered the spirits market the past two years, strong momentum in the ready-to-drink and ready-to-serve sectors continues to drive industry growth, according to the 2024 edition of The U.S. Spirits Market: Shanken’s Impact Databank Review & Forecast. Total spirits volumes are expected to crest 300 million cases for the first time this year, which will mark the industry’s 29th consecutive annual gain.
While Tequila’s momentum has slowed recently, agave-based spirits are expected to surpass vodka for the first time ever as the market’s largest category in dollar value terms by sometime next year, according to Impact Databank’s 280-page report. After supply chain issues disrupted shipments during the pandemic, 100% blue agave Tequila brands rose again overall last year, comprising nearly three-quarters of the Tequila market in the U.S.
The biggest catalyst for industry growth continues to be spirits-based RTDs—last year, prepackaged cocktails became the second-largest spirits segment by volume, behind only vodka. High Noon hard seltzer moved into the top spot among all spirits brands for the first time in 2023, and the Gallo brand is projected to outsell second-ranked Tito’s vodka by a two-to-one margin in volume terms by year-end.
The super-premium sector also remains resilient. Last year, $25-and-over Tequila brands increased by more than 6% in volume terms, while $25-and-over Bourbon and other straight American whiskies registered solid 3.5% growth, according to Impact Databank.
Three $40-and-over Tequila brands—Don Julio, Patrón, and Casamigos—are among the top six spirits overall by retail dollars in the U.S., all at over $1.5 billion apiece. Don Julio, in particular, has registered impressive growth in NielsenIQ channels, surging 47% in the year-to-date period ending September 7, led by its Reposado expression.
For more information regarding The U.S. Spirits Market: Impact Databank Review & Forecast, 2024 Edition, as well as other exclusive Shanken reports and publications, visit impactdatabank.com.—Juan Banaag
| U.S. – Top 10 Spirits Priced At Least $25 a 750-ml. (millions of 9-liter cases) |
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| Rank | Brand | Company | Origin/Type | 2019 | 2024P | Growth Rate1 |
|---|---|---|---|---|---|---|
| 1 | Jameson | Pernod Ricard | Irish Whiskey | 3.72 | 3.85 | 0.6% |
| 2 | Crown Royal2 | Diageo | Canadian Whisky | 4.10 | 3.50 | -3.1% |
| 3 | Hennessy | Moët Hennessy | Cognac | 4.24 | 3.05 | -6.3% |
| 4 | Grey Goose | Bacardi | Imported Vodka | 2.23 | 2.70 | 3.9% |
| 5 | Don Julio | Diageo | Tequila | 1.02 | 2.65 | 21.0% |
| 6 | Patrón | Bacardi | Tequila | 2.13 | 2.50 | 3.3% |
| 7 | Casamigos | Diageo | Tequila | 0.55 | 2.35 | 33.8% |
| 8 | Maker’s Mark | Suntory Global Spirits | Bourbon | 1.79 | 2.20 | 4.2% |
| 9 | 1800 | Proximo Spirits | Tequila | 1.17 | 2.15 | 13.0% |
| 10 | Johnnie Walker | Diageo | Scotch Whisky | 1.86 | 1.90 | 0.4% |
| Total Top 103 | 22.80 | 26.84 | 3.3% | |||
| 1 Average annual compound growth rate. 2 Excludes flavors. 3 Addition of columns may not agree due to rounding. Source: IMPACT DATABANK © 2024 |
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