by Freedonia Focus Reports Team
May 9, 2023
Demand expected to rise 5.0%, compared to 1.8% for distilled spirits as a whole
Cleveland, OH, May 9, 2023 — US demand for distilled spirits is forecast to increase 1.8% per year in volume terms through 2027, according to Distilled Spirits: United States, a report recently released by Freedonia Focus Reports. Suppliers will continue to benefit from a consumer trend toward premium and super-premium distilled spirits, and away from beer and wine. Suppliers will also benefit from increasingly tight consumer budgets, particularly among millennials. Distilled spirits can offer a higher value in terms of drinks per dollar than beer or wine. An opened bottle of distilled spirit will also last considerably longer than beer or wine, reducing waste and enabling superior portion control.
Demand for bottled vodka is expected to decline to 2027 while remaining the largest segment. Penetration of flavored vodkas has reached a saturation point, which will restrain growth prospects, particularly as suppliers field flavored versions of other spirits. A projected minimal average annual decline in the segment’s prime 25-to-34-year-old demographic relative to the historical period will also darken the outlook.
Bottled tequila demand is expected to see the fastest growth among segments. Advances will be driven by continued consumer exploration of super-premium tequilas. New product introductions, such as an increase in tequilas aged in barrels that previously stored beer, wine, or other spirits, will stoke this trend.
These and other key insights are featured in Distilled Spirits: United States. This report forecasts to 2027 US bottled distilled spirits demand in US gallons. Total demand is segmented by product in terms of:
To illustrate historical trends, total demand, the various segments, and trade are provided in annual series from 2012 to 2022.
Distilled spirits packaged in bulk containers (i.e., containers holding over four liters) are excluded from the scope of this report. Spirits imported in bulk and bottled domestically are counted toward domestic production of bottled spirits. Exports of bulk spirits are similarly excluded.
This report includes the results of a proprietary national online consumer survey of US adults (age 18+). This Freedonia Focus Reports National Online Consumer Survey has a sample size of 2,001, screened for response quality, and representative of the US population on the demographic measures of age, gender, geographic region, race/ethnicity, household income, and the presence/absence of children in the household.
More information about the report is available at:
https://www.freedoniagroup.com/freedonia-focus/distilled-spirits-united-states-ff10014.htm
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