Note: This report includes forecasting data that is based on baseline historical data.
Executive summary
The United States (US) was the world's second largest spirits market in 2021, with US$102.3 billion in sales. The American market increased at a compound annual growth rate (CAGR) of 7.2% from 2016-2021, and is expected to grow at a CAGR of 7.1% from 2021 to 2026. American sales of spirits are expected to reach US$144.4 billion by 2026.
The American spirit market is dominated by whiskies. Canadian whisky was the largest category of foreign whiskey, with US$6.0 billion in sales in 2021, up from its 2016 value of US$4.9 billion. Canadian whisky is expected to grow at a CAGR of 5.7% over the 2021-2026 period and reaching US$7.9 billion in sales in 2026.
In 2021, the American spirit market was dominated by the on-trade. Total on-trade sales were US$ 55.6 billion 54.3% of the spirit market), while off-trade sales were US$46.7 billion (45.7%).
In 2021, the top-10 brands in the US represented for 28.4% market share. Among the top-10 brands, Tito's (Fifth Generation, Inc) saw a highest market share growth at a CAGR of 15.5% from 2017 to 2021.
In 2021, the US imported a total of US$10.7 billion spirits growing at a CAGR of 7.6% from 2017 to 2021. Top three supplier markets were Mexico (35.4%), France (29.3%), and the UK 13.2$). Canada was the 4th largest spirits supplier to the US at a value of US$516.2 million in 2021.
In 2021, top-3 American imports of Canadian spirits were whiskies at US$261.0 million, liqueurs and cordials (US$ 187.9 million), and ethyl alcohol of an alcoholic strength of < 80% (US$37.0 million).
Market overview
The US was the world's second largest spirits market in 2021, with US$102.3 billion in sales. The American market increased at a CAGR of 7.2% from 2016-2021, and is expected to grow at a CAGR of 7.1% from 2021 to 2026. American sales of spirits are expected to reach US$144.4 billion by 2026.
| Geography | 2016 | 2021 | CAGR* % 2016-2021 | 2022 | 2026 | CAGR* % 2021-2026 |
|---|---|---|---|---|---|---|
| World | 482.2 | 553.1 | 2.8 | 601.5 | 790.9 | 7.4 |
| China | 133.1 | 178.7 | 6.1 | 182.4 | 239.0 | 6.0 |
| United States | 72.2 | 102.3 | 7.2 | 113.1 | 144.4 | 7.1 |
| India | 31.1 | 27.3 | −2.6 | 26.9 | 31.8 | 3.1 |
| United Kingdom | 15.9 | 19.2 | 3.8 | 22.4 | 29.1 | 8.7 |
| Japan | 25.5 | 18.8 | −5.9 | 22.6 | 26.7 | 7.2 |
| France | 18.4 | 16.6 | −2.0 | 19.2 | 23.4 | 7.1 |
| Russia | 12.7 | 14.0 | 2.1 | 11.6 | 12.3 | −2.6 |
| Germany | 17.6 | 13.6 | −5.0 | 17.8 | 21.6 | 9.7 |
| South Korea | 10.9 | 11.1 | 0.3 | 12.5 | 15.0 | 6.2 |
| Italy | 9.0 | 9.0 | 0.0 | 10.5 | 14.5 | 10.0 |
| Canada (11th) | 7.2 | 8.8 | 4.0 | 9.5 | 12.8 | 7.7 |
|
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate |
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The American spirit market is dominated by whiskies, which saw US$31.1 billion in sales in 2021, accounting for 30.4% of all sales in 2021 of any products in the spirit category. This category is expected to see higher growth than the market and is expected to account for 32.1% of the market in 2026, with US$46.3 billion in sales.
Canadian whisky was the largest category of foreign whiskey, with US$6.0 billion in sales in 2021, up from its 2016 value of US$4.9 billion. Canadian whisky is expected to grow at a CAGR of 5.7% over the 2021-2026 period and reaching US$7.9 billion in sales in 2026.
| Category | 2016 | 2021 | CAGR* % 2016-2021 | 2022 | 2026 | CAGR* % 2021-2026 |
|---|---|---|---|---|---|---|
| Spirits | 72.2 | 102.3 | 7.2 | 113.1 | 144.4 | 7.1 |
| Brandy and Cognac | 8.4 | 14.5 | 11.6 | 16.3 | 21.9 | 8.6 |
| Brandy | 2.1 | 2.5 | 3.2 | 2.6 | 3.0 | 3.6 |
| Cognac | 6.3 | 12.0 | 13.9 | 13.7 | 19.0 | 9.5 |
| Liqueurs | 8.1 | 9.8 | 3.9 | 10.5 | 12.0 | 4.2 |
| Bitters | 0.9 | 1.1 | 2.6 | 1.1 | 1.3 | 4.3 |
| Cream-based Liqueurs | 1.0 | 1.2 | 3.3 | 1.3 | 1.4 | 3.4 |
| Other Liqueurs | 6.1 | 7.5 | 4.2 | 8.0 | 9.3 | 4.4 |
| Non Alcoholic Spirits | 0.0 | 0.1 | 144.8 | 0.2 | 0.6 | 50.6 |
| Rum | 6.1 | 7.0 | 2.6 | 7.4 | 8.1 | 3.1 |
| Dark Rum | 3.3 | 3.9 | 3.4 | 4.2 | 4.8 | 4.6 |
| White Rum | 2.9 | 3.1 | 1.6 | 3.2 | 3.3 | 1.1 |
| Tequila | 6.6 | 13.7 | 15.9 | 15.9 | 23.4 | 11.2 |
| Whiskies | 21.5 | 31.1 | 7.7 | 35.0 | 46.3 | 8.3 |
| Bourbon/Other US Whiskey | 9.4 | 14.1 | 8.6 | 16.3 | 22.7 | 9.9 |
| Canadian Whisky | 4.9 | 6.0 | 4.3 | 6.6 | 7.9 | 5.7 |
| Irish Whiskey | 2.2 | 4.0 | 12.7 | 4.7 | 6.9 | 11.2 |
| Japanese Whisky | 0.2 | 0.7 | 28.9 | 0.8 | 1.3 | 14.0 |
| Blended Scotch Whisky | 3.1 | 3.5 | 2.3 | 3.6 | 3.9 | 2.2 |
| Single Malt Scotch Whisky | 1.7 | 2.8 | 10.4 | 3.0 | 3.7 | 5.9 |
| White Spirits | 21.4 | 25.7 | 3.8 | 27.5 | 31.5 | 4.1 |
| Gin | 3.0 | 3.7 | 4.1 | 3.9 | 4.1 | 2.1 |
| Vodka | 18.3 | 22.1 | 3.8 | 23.6 | 27.4 | 4.4 |
| Other Spirits | 0.2 | 0.3 | 11.5 | 0.4 | 0.5 | 8.6 |
|
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate |
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Off-trade and on-trade review
In 2021, the American spirit market was dominated by the on-trade. Total on-trade sales were US$ 55.6 billion 54.3% of the spirit market), while off-trade sales were US$46.7 billion (45.7%).
2021 remained a year of growth for spirits overall. Some rebalancing necessarily occurred, as consumers again ventured outside the home, but the minor losses in the off-trade were more than outweighed by the sharp recovery in the on-trade (Euromonitor International, 2022).
From 2021-2026, the on-trade is expected to see faster sales growth as it partially recovers from the pandemic. On-trade sales of spirits in 2026 are expected to be US$79.3 billion. Off-trade sales are expected to reach US$65.1 billion by 2026. Numerous categories, especially tequila, whiskey, and cognac, are those on which US consumers love to splurge. This intense interest was enough to drive sales in these categories regardless of whether people were going out or staying at home (Euromonitor International, 2022).
| Category | Off-trade / on trade | 2016 | 2021 | CAGR* % 2016-2021 | 2022 | 2026 | CAGR* % 2021-2026 |
|---|---|---|---|---|---|---|---|
| Spirits | Off-trade | 31,879.7 | 46,695.9 | 7.9 | 50,971.3 | 65,132.9 | 6.9 |
| On-trade | 40,292.8 | 55,581.3 | 6.6 | 62,172.4 | 79,280.8 | 7.4 | |
| Brandy and Cognac | Off-trade | 2,479.8 | 4,639.7 | 13.3 | 5,155.6 | 6,914.3 | 8.3 |
| On-trade | 5,920.6 | 9,879.9 | 10.8 | 11,184.9 | 15,018.5 | 8.7 | |
| Liqueurs | Off-trade | 3,151.9 | 3,882.4 | 4.3 | 4,140.5 | 4,793.4 | 4.3 |
| On-trade | 4,907.1 | 5,888.7 | 3.7 | 6,345.2 | 7,227.5 | 4.2 | |
| Non Alcoholic Spirits | Off-trade | 0.1 | 14.9 | 172.0 | 26.2 | 94.9 | 44.8 |
| On-trade | 0.8 | 64.3 | 140.4 | 126.7 | 517.0 | 51.7 | |
| Rum | Off-trade | 3,028.7 | 3,543.7 | 3.2 | 3,701.6 | 4,259.2 | 3.7 |
| On-trade | 3,107.4 | 3,421.7 | 1.9 | 3,686.1 | 3,857.0 | 2.4 | |
| Tequila | Off-trade | 3,126.2 | 6,952.8 | 17.3 | 8,073.6 | 12,063.1 | 11.7 |
| On-trade | 3,445.1 | 6,795.4 | 14.6 | 7,863.8 | 11,339.9 | 10.8 | |
| Whiskies | Off-trade | 10,129.8 | 15,449.6 | 8.8 | 17,006.8 | 22,217.9 | 7.5 |
| On-trade | 11,322.6 | 15,675.0 | 6.7 | 17,984.2 | 24,116.7 | 9.0 | |
| White Spirits | Off-trade | 9,931.5 | 12,152.1 | 4.1 | 12,796.6 | 14,695.8 | 3.9 |
| On-trade | 11,433.0 | 13,593.7 | 3.5 | 14,682.4 | 16,810.8 | 4.3 | |
| Other Spirits | Off-trade | 31.8 | 60.7 | 13.8 | 70.3 | 94.3 | 9.2 |
| On-trade | 156.1 | 262.7 | 11.0 | 299.1 | 393.5 | 8.4 | |
|
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate |
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Distribution channels
In 2021, store-based retailing distribution totaled a market share of 97.5% consisting of modern (31.1%) and traditional (56.9%) grocery retailers, mixed retailers (5.6%), and non-grocery specialists (3.9%).
Non-store e-commerce retailing holds a highest growth of market share amongst all retail distribution channels, at a CAGR of 44.3% from 2017 to 2021. E-commerce was easier for spirits than it used to be, with direct-to-consumer online sales slowly gaining ground (Kentucky, the heartland of bourbon, legalizing these sales was especially important), and to-go cocktails were made permanently legal in some areas (Euromonitor International, 2022).
| Outlet Type | 2017 | 2018 | 2019 | 2020 | 2021 | CAGR* % 2017-2021 |
|---|---|---|---|---|---|---|
| Store-Based Retailing | 99.6 | 99.6 | 99.5 | 98.2 | 97.5 | −0.4 |
| Grocery Retailers | 90.1 | 89.9 | 89.8 | 88.1 | 88.0 | −0.5 |
| Modern Grocery Retailers | 31.7 | 32.0 | 32.2 | 29.2 | 31.1 | −0.4 |
| Convenience Stores | 2.7 | 2.8 | 2.8 | 2.6 | 2.7 | 0.0 |
| Forecourt Retailers | 7.3 | 7.5 | 7.6 | 4.5 | 7.0 | −0.8 |
| Hypermarkets | 4.1 | 4.1 | 4.1 | 4.1 | 4.0 | −0.5 |
| Supermarkets | 17.7 | 17.7 | 17.7 | 18.0 | 17.4 | −0.3 |
| Traditional Grocery Retailers | 58.3 | 57.8 | 57.6 | 58.9 | 56.9 | −0.5 |
| Food/drink/tobacco specialists | 54.8 | 54.3 | 54.0 | 54.8 | 53.3 | −0.6 |
| Independent Small Grocers | 2.7 | 2.7 | 2.6 | 2.6 | 2.6 | −0.8 |
| Other Grocery Retailers | 0.8 | 0.9 | 1.0 | 1.4 | 1.1 | 6.6 |
| Non-Grocery Specialists | 4.1 | 4.1 | 4.0 | 4.0 | 3.9 | −1.0 |
| Drugstores/parapharmacies | 4.1 | 4.1 | 4.0 | 4.0 | 3.9 | −1.0 |
| Mixed Retailers | 5.5 | 5.6 | 5.6 | 6.1 | 5.6 | 0.4 |
| Mass Merchandisers | 0.7 | 0.7 | 0.8 | 0.8 | 0.7 | 0.0 |
| Warehouse Clubs | 4.8 | 4.8 | 4.9 | 5.3 | 4.8 | 0.0 |
| Non-Store Retailing | 0.4 | 0.4 | 0.5 | 1.8 | 2.5 | 44.3 |
| E-Commerce | 0.4 | 0.4 | 0.5 | 1.8 | 2.5 | 44.3 |
| Total | 100.0 | 100.0 | 100.0 | 100.0 | 100.0 | 0.0 |
|
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate |
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Competitive landscape
In 2021, the top-10 brands in the US represented for 28.4% market share. Among the top-10 brands, Tito's (Fifth Generation, Inc) saw a highest market share growth at a CAGR of 15.5% from 2017 to 2021.
| Brand Name | Company Name | 2017 | 2018 | 2019 | 2020 | 2021 | CAGR* % 2017-2021 |
|---|---|---|---|---|---|---|---|
| Hennessy | LVMH Moët Hennessy Louis Vuitton SA | 3.9 | 4.3 | 4.7 | 4.3 | 5.2 | 6.0 |
| Tito's | Fifth Generation, Inc | 2.3 | 2.9 | 3.6 | 4.0 | 4.8 | 15.5 |
| Crown Royal | Diageo Plc | 2.3 | 2.4 | 2.6 | 2.9 | 3.4 | 8.0 |
| Jameson | Pernod Ricard Groupe | 1.9 | 2.2 | 2.4 | 2.1 | 2.5 | 5.3 |
| Patrón | Bacardi & Co Ltd | 1.6 | 1.8 | 1.9 | 2.4 | N/C | |
| Jack Daniel's | Brown-Forman Corp | 2.3 | 2.4 | 2.5 | 2.2 | 2.4 | 1.0 |
| Rémy Martin | Rémy Cointreau Group | 1.6 | 1.7 | 1.7 | 1.8 | 2.4 | 9.0 |
| Fireball | Sazerac Co Inc | 1.8 | 1.9 | 2.0 | 2.0 | 2.3 | 5.9 |
| Maker's Mark | Suntory Holdings Ltd | 1.3 | 1.4 | 1.6 | 1.6 | 1.9 | 8.6 |
| Smirnoff | Diageo Plc | 1.6 | 1.7 | 1.7 | 1.6 | 1.7 | 0.7 |
| Private label | Private Label | 0.2 | 0.2 | 0.2 | 0.2 | 0.2 | 2.8 |
| Others | Others | 56.8 | 58.2 | 61.4 | 63.3 | 73.0 | 5.2 |
| Total | Total | 75.9 | 80.9 | 86.2 | 87.9 | 102.3 | 6.1 |
|
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate N/C: not calculable |
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Foreign spirits in the United States
In 2021, the US imported a total of US$10.7 billion spirits growing at a CAGR of 7.6% from 2017 to 2021. Top three supplier markets were Mexico (35.4%), France (29.3%), and the UK 13.2$). Canada was the 4th largest spirits supplier to the US at a value of US$516.2 million in 2021.
| Market | 2017 | 2018 | 2019 | 2020 | 2021 | CAGR* % 2017-2021 | Market share (%) in 2021 |
|---|---|---|---|---|---|---|---|
| World | 7,986.0 | 8,725.2 | 9,533.6 | 8,893.1 | 10,689.9 | 7.6 | 100.0 |
| Mexico | 1,335.3 | 1,564.3 | 1,887.3 | 2,698.2 | 3,783.6 | 29.7 | 35.4 |
| France | 2,283.9 | 2,522.7 | 2,748.8 | 2,538.7 | 3,135.2 | 8.2 | 29.3 |
| United Kingdom | 1,953.6 | 2,034.6 | 2,105.6 | 1,417.3 | 1,408.7 | −7.9 | 13.2 |
| Canada | 386.0 | 400.5 | 440.5 | 454.5 | 516.2 | 7.5 | 4.8 |
| Ireland | 649.0 | 724.0 | 817.4 | 528.9 | 409.0 | −10.9 | 3.8 |
| Netherlands | 263.8 | 361.8 | 334.0 | 310.4 | 324.2 | 5.3 | 3.0 |
| Sweden | 279.3 | 255.3 | 257.8 | 234.3 | 177.9 | −10.7 | 1.7 |
| Italy | 153.3 | 177.7 | 182.0 | 111.2 | 159.9 | 1.1 | 1.5 |
| Latvia | 138.4 | 123.3 | 139.1 | 120.8 | 139.6 | 0.2 | 1.3 |
| Japan | 50.3 | 48.5 | 70.9 | 88.1 | 129.9 | 26.8 | 1.2 |
|
Source: Global Trade Tracker, 2022 *CAGR: Compound Annual Growth Rate |
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From 2017-2021, American imports of Canadian spirits increased from US$386.0 in 2017 to US$516.2 in 2021, at a CAGR of 7.5%. In 2021, top-3 American imports of Canadian spirits were whiskies at US$261.0 million, liqueurs and cordials (US$ 187.9 million), and ethyl alcohol of an alcoholic strength of < 80% (US$37.0 million).
| HS Code | Description | 2017 | 2018 | 2019 | 2020 | 2021 | CAGR* % 2017-2021 |
|---|---|---|---|---|---|---|---|
| 2208 | Spirits total | 386.0 | 400.5 | 440.5 | 454.5 | 516.2 | 7.5 |
| 220830 | whiskies | 259.9 | 270.4 | 254.2 | 239.4 | 261.0 | 0.1 |
| 220870 | liqueurs and cordials | 112.4 | 115.7 | 165.9 | 172.5 | 187.9 | 13.7 |
| 220890 | ethyl alcohol of an alcoholic strength of < 80 | 3.3 | 3.7 | 6.9 | 19.7 | 37.0 | 83.4 |
| 220860 | vodka | 7.8 | 7.4 | 9.5 | 11.8 | 15.7 | 19.1 |
| 220850 | gin and geneva | 1.2 | 2.0 | 2.2 | 4.6 | 8.0 | 59.3 |
| 220840 | rum | 1.4 | 1.4 | 1.9 | 6.4 | 6.6 | 47.2 |
| 220820 | spirits obtained by distilling grape wine or grape marc | 0.00 | 0.00 | 0.00 | 0.00 | 0.02 | N/C |
|
Source: Euromonitor International, 2022 *CAGR: Compound Annual Growth Rate N/C: not calculable |
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Resources
- Euromonitor International, 2022
- Euromonitor International, 2022: Spirits in the US
- Global Trade Tracker, 2022
Sector Trend Analysis – Spirits in the United States
Global Analysis Report
Prepared by: ZhiDuo Wang, Market Analyst
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