Exclusive news and research on the wine, spirits and beer business

Exclusive: Impact Databank Projects U.S. Spirits Market To Rise For 24th Consecutive Year

October 7, 2019

The U.S. spirits market is on pace to expand once again this year, by an estimated 2% in volume terms, according to The U.S. Spirits Market: Shanken’s Impact Databank Review & Forecast, 2019 Edition. This will mark the 24th consecutive annual volume gain for the spirits industry, which by year-end is expected to stand at 235.8 million nine-liter cases. Consumption is projected to rise further to 255 million cases by 2025, according to the recently released 300-page report.

Spirits are estimated to have outperformed both the beer and wine categories in volume terms for the eighth straight year in 2019. Last year, spirits sales surpassed beer in dollar terms for the first time in over 40 years, with Tequila, Bourbon, Irish whiskey, Cognac, and flavored spirits driving growth. Vodka remains the largest single category by a wide margin, but its recent growth has been sluggish and inconsistent at best.

While total spirits consumption has expanded by more than 23 million cases over the past five years, more than a quarter of that gain came from one brand: Tito’s vodka. During that span, Tito’s moved up from 40th overall among all spirits brands in volume terms, all the way up to No.-2, behind only Smirnoff vodka. Tito’s is also on pace to become the market’s second-largest brand overall in dollar terms behind Crown Royal by the end of this year, surpassing Hennessy Cognac.

By company, industry leader Diageo outsells second-ranked Bacardi USA in dollar terms by more than a two-to-one margin. Diageo still leads by volume as well, even after having sold 19 spirits brands this year to Sazerac Co., which ranks second by volume. For more information and to order The U.S. Spirits Market: Impact Databank Review & Forecast, 2019 Edition, as well as other exclusive Shanken reports and publications, click here.—Natalia Razzo

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