Spirits Rebound On-Premise, Still Down 5% Compared With Pre-Pandemic

According to Impact Databank, the U.S. spirits market totaled 294 million cases last year on 6% growth. With that performance, combined with beer’s decline, spirits value from a supplier perspective surpassed that of beer in 2022 for the first time since the 1970s. In terms of total consumer purchases in the on- and off-premise combined, however, spirits surpassed beer about a decade ago.

The Distilled Spirits Council of the U.S. (DISCUS) reports that spirits’ supplier value grew by 5.1% in 2022 to a record total of $37.6 billion, taking a 42.1% share of beverage alcohol, compared with beer’s 41.9% share.

Spirits volume in the on-premise, representing about 20% of the U.S. market, according to DISCUS, has rebounded from the pandemic but remains 5% lower than 2019 levels. The U.S. Bureau of Labor and Statistics reported that hospitality industry employment remained 750,000 jobs short last year compared to pre-pandemic. Off-premise spirits volume has remained steady the past two years after vaulting upward amid the initial outbreak of the pandemic in 2020.

“The recovery of hospitality businesses is trending in the right direction, but we urge legislators at the federal and state levels to seek ways to support these businesses as they continue to recover, not saddle them with unnecessary market restrictions or higher taxes,” said DISCUS president and CEO Chris Swonger. “Measures to modernize the marketplace by providing spirits consumers with greater access and more choices will continue to spur economic growth.”—Daniel Marsteller

Tagged : DISCUS, Impact Databank

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