Impact Databank: Spirits Market To Rise For 29th Consecutive Year, Despite Slowdown
December 17, 2024Despite nagging inventory issues, inflation concerns, and threats of new tariffs, the U.S. spirits industry is expected to post its 29th consecutive annual increase this year, according to the 2024 edition of The U.S. Spirits Market: Shanken’s Impact Databank Review & Forecast. Spirits are projected to continue gaining share from the wine and beer categories, both of which are estimated to decline this year in both volume and value terms.
While American whiskies overall are expected to decrease for the second straight year, high-end Bourbon/rye will eke out some dollar gains. Spirits-based RTDs had been growing at strong double-digit rates the past few years, but 2024 growth could be cut in half as the base grows larger. Tequila volume will advance only marginally, but the category is still projected to become the largest single spirits category in dollar terms by year-end—surpassing vodka—according to Impact Databank. The only other sector projected to continue posting growth in 2024 is de-alcoholized spirits, albeit from a much smaller base.
Among the 25 largest-selling brands, the strongest growth in 2024 is expected to come from Don Julio Tequila, primarily due to the exceptional performance of its Reposado expression. Another Diageo brand, Crown Royal, the market’s second-largest spirit in dollar terms behind only Tito’s vodka, according to Impact Databank, received a significant boost this year from the launch of its Blackberry flavor.
This month, Sazerac Co. became the industry’s largest supplier in volume terms on a pro forma basis, after its purchase of Svedka vodka from Constellation Brands. But Diageo remains the market leader in dollar terms by an almost two-to-one margin, according to Impact Databank. The only other top-10 supplier projected to see growth in 2024 is Gallo, primarily due to the continued gains of High Noon seltzer.—Juan Banaag
| Top 10 Spirits Marketers In The U.S.1 | ||||||
| Rank | Company | Pro Forma 2023 U.S. Volume2 |
Off-Premise Volume Growth 2024 YTD3 |
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|---|---|---|---|---|---|---|
| 1 | Sazerac Co.4 | 42.9 | 3.4% | |||
| 2 | Diageo North America | 40.8 | -2.1% | |||
| 3 | Spirit of Gallo | 33.6 | 10.6% | |||
| 4 | Suntory Global Spirits | 23.2 | -2.2% | |||
| 5 | Bacardi USA | 17.1 | -5.8% | |||
| 6 | Heaven Hill Brands | 16.7 | -3.9% | |||
| 7 | Pernod Ricard USA | 15.8 | -3.4% | |||
| 8 | Proximo Spirits | 13.6 | -4.8% | |||
| 9 | Fifth Generation | 12.2 | -1.7% | |||
| 10 | Brown-Forman | 11.5 | -4.0% | |||
| Total Spirits1 | 299.0 | 2.0% | ||||
| 1 Includes RTDs. 2 Millions of 9-liter cases. 3 Year-to-date ending 12/7/2024 in NIQ/Nielsen channels. 4 Adjusted to include Svedka, acquired in 2024. Source: NIQ/Nielsen & IMPACT DATABANK © 2024 |
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Tagged : Constellation, Crown Royal, Don Julio, Impact, Sazerac, Tito's
