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The US alcoholic beverages market size is projected to increase by USD 52.82 billion and the market size is estimated to grow at a CAGR of 2.95% between 2022 and 2027.This US alcoholic beverages market report extensively covers market segmentation by distribution channel (off-trade and on-trade) and product (beer, wine, spirits, RTD, and others). It also includes an in-depth analysis of drivers, trends, and challenges.
One of the key factors driving the US alcoholic beverages market growth is the increased demand for craft drinks. There is an increasing preference for craft drinks among the consumer segment as it offers more varieties than traditional beer. One of the main features of craft beer is that they are locally brewed beers that have a unique taste compared with regular beers and are available in different ingredients and flavors. There is a significant demand for these craft beers and are available in fresh bottles, cans, and kegs. Furthermore, there is also high demand for other types of craft segments such as craft cocktails and craft liquor segments. It is estimated that more than 500 craft distilleries are in the US which is expected to drive the US alcoholic beverages market growth.
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A key factor shaping the US alcoholic beverages market growth is the new packaging formats. Several vendors in the US alcoholic beverages market are launching new and distinctive packaging labels in various formats. These kinds of luxury and unique packaging helps to attract the consumer segment as well as it improves the shelf life of the products.
There is an increasing demand for certain kinds of packaged products among millennials such as tetra packs, PET bottles, bag-in-box, and metal cans. One of the main reasons driving the high demand for these packaged products is the ease of on-the-go consumption and the lightweight nature of these packaging formats, Hence, such trends are expected to drive the US alcoholic beverages market growth during the forecast period.
Campaigns against alcohol consumption are one of the key challenges hindering the US alcoholic beverages market growth. Factors such as the rising incidence of alcohol abuse and alcohol-related accidents, mainly among the younger population have resulted in several regulatory and social organizations launching campaigns against alcohol consumption. Additionally, various governments and health organizations are promoting such campaigns by spreading among people the harmful impacts of consuming alcoholic beverages.
As a result, it can negatively impact the growth of the alcoholic beverages market in the region. For example, in November 2021, the Pan-American Health Organization (PAHO) launched a new awareness campaign, Live Better, Drink Less, to spread awareness of the harmful effect of alcohol consumption as well as the negative impacts of alcohol consumption such as liver diseases and cancer, cardiovascular problems, and tuberculosis. Hence, such factors are expected to hinder the US alcoholic beverages market growth during the forecast period.
The increasing number of pubs is expected to boost the beer segment in the US alcoholic beverages market during the forecast period. Although, the segment growth rate is slowing down owing to the rising preference for wine and spirits among millennials and Gen-X consumers. Thus, several beer companies are innovating new varieties of drinks and introducing new flavors to existing products to sustain as well as expand their market. For instance, in April 2022, Diageo Plc rolled out cold brew coffee beer globally.
Moreover, the Biscuit Bar, a US-based company, which serves a wide range of alcoholic beverages, including beer, announced the opening of five outlets across North Texas In 2020. One of the major factors which is expected to fuel the growth of this segment is the increasing number of bars, pubs, and restaurants that promote the sales of new beer varieties through on-trade distribution channels is expected to drive the growth of this segment which turn will fuel the US alcoholic beverages market growth during the forecast period.
The spirits segment is the second-largest segment of the US Alcoholic beverages market. This segment includes whiskey, gin, rum, tequila, scotch, cognac, brandy liqueur, and others. Rising health awareness among consumers is the key factor driving the demand for low-calorie spirits. Moreover, market players are encouraging off-trade sales of the product by offering gluten-free, unflavored vodkas. Smirnoff, Absolut, Khortytsa, Khlibnyi Dar, and Svedka are some of the highest-selling vodka brands in the US in 2020. These developments are expected to fuel the growth of the spirits segment, which is expected to boost the growth of the market in focus during the forecast period.
The off-trade segment is estimated to witness significant growth during the forecast period. The off-trade segment mainly comprises supermarkets, hypermarkets, specialty stores, and other retail formats such as online sales. These supermarkets and hypermarkets have special sections for or storing alcoholic beverages as well as huge stocks of various brands are available in these stores as well.
The off-trade segment was the largest segment and was valued at USD 200.75 billion in 2017.
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There is a growing preference for these off-trade channel segments as it provides convenience to consumers by offering a wide range of options to choose from. Furthermore, with the opening of new supermarkets and hypermarkets, it is expected to boost the sale of alcohol through these off-trade channels. For instance, Aldi plans to open nearly 2,500 stores in the US by 2022. Tesco Plc (Tesco), Carrefour SA (Carrefour), and Target Brands Inc. (Target) are some of the major hypermarkets and supermarkets that offer various brands of alcoholic beverages in the US. Hence, the rising number of vodka manufacturers that offer their products through supermarkets and hypermarkets, is expected to drive the growth of this segment which in turn will drive the US alcoholic beverages market growth during the forecast period.
The growing preference of the on-trade segment among millennials is expected to fuel the US alcoholic beverages market growth during the forecast period. One of the main features of the on-trade segment is that it allows consumers to drink at the place of purchase. This segment mainly comprises hotels, pubs, bars, and restaurants. Factors such as the rising consumption of alcoholic beverages at bars and pubs, particularly by the millennial population, the growing popularity of pubbing and nightlife, prefer consuming alcoholic beverages in the form of cocktails are expected to drive the growth of this segment which in turn will fuel the US alcoholic beverages market growth during the forecast period.
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The alcoholic beverages market in US report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The alcoholic beverages market in US report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Alcoholic Beverages Market In US Scope
