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

Exclusive: Premium Spirits To Drive Industry Growth Through 2025

December 17, 2019

The U.S. distilled spirits category is poised to expand once again this year, with an expected 2% gain bringing total volume to yet another all-time high of 236 million 9-liter cases, according to The U.S. Spirits Market: Shanken’s Impact Databank Review & Forecast, 2019 Edition. Spirits sales in the U.S. surpassed beer in dollar value terms last year, and are projected to continue accruing volume and value share until at least 2025, according to the 300-page report.

High-end labels have fueled distilled spirits’ uninterrupted 24-year run of annual volume increases, as super-premium brands ($25 and above a 750-ml.) continue to post impressive gains, particularly for Irish whiskey, Tequila, Cognac, and flavored whiskies. High-end Bourbon, single malt Scotch whisky, imported liqueurs, and a number of gins have also recorded solid increases the past few years.

Imported spirits overall crested 100 million cases for the first time ever last year and will continue to outpace domestic brands through 2025. Craft spirits also are outperforming the overall spirits market, although the segment is projected to account for less than 4% of total industry volume this year. Craft spirits are expected to reach nearly 10 million cases by the end of next year—and are projected to double their overall market share by 2025.

Crown Royal, with its flavor extensions included, remains the U.S. market’s number-one spirits brand by dollar value, followed by Jack Daniel’s and Hennessy. Last year, Smirnoff was the industry’s biggest player by volume for the 12th consecutive year, but the Diageo-owned vodka brand is now on the verge of being surpassed by Tito’s vodka. Among other key developments, the Fireball flavored whisky brand is expected to rank among the top five spirits brands in the U.S. market by the end of this year.

For more information and to order The U.S. Spirits Market: Impact Databank Review & Forecast, as well as other Shanken reports and publications, visit https://www.impactdatabank.com/—Natalia Razzo

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