For the first time in over a decade, Smirnoff vodka is no longer the top-selling distilled spirit in America.
That distinction is now owned by Tito’s Handmade Vodka, which increased in volume by over 20% in 2019 (vodka remains the largest spirit category by volume in the US), ISWR said, adding that total spirits volume in the country grew 2.3% last year, led by increases in mezcal (40%), Japanese whisky (23.1%), Irish whisky (8.6%), tequila (9.3%), US whiskey (5.5%), and cognac (4%).
Ready-to-drink products are an $8bn industry in the US, with volume that grew by almost 50% in 2019, thanks in large part to the tremendous popularity of hard seltzers (brands such as White Claw and Truly), which represent 43% of the total RTD category.
As noted in the recent IWSR Hard Seltzer Report, hard seltzer volume is currently about 82.5m nine-liter cases and forecasted to triple by 2023. Prepared canned cocktails are another segment of RTD beverages that are achieving high levels of growth, as many of these products emulate what’s popular among hard seltzers – they’re convenient, flavorful and lower in calories and sugar.
Beer: Craft, Low/No Alcohol, and Imports Post Gains
With continued heightened competition from other categories, beer once again showed a decline in the US in 2019 (-2.3%). However, craft beer consumption increased last year by 4.1%, and low/no alcohol beer posted a gain of 6.6%. Imported beer increased 3.1%, while domestic beer dropped -3.6%.
“The beer industry producers are diversifying by entering new categories – such as hard kombucha, hard seltzer, canned cocktails, and even spirits – to meet growing consumer demand for both convenience and better-for-you beverages,” says Brandy Rand, Chief Operating Officer for the Americas at IWSR Drinks Market Analysis.
Ecommerce Increases
The 2019 IWSR US BAR database also includes research on the growing eCommerce market for beverage alcohol in America. That channel is expected to have reached $3bn in 2019, led particularly by wine sales, which have relatively fewer state-level restrictions.
A recent IWSR report, A Blueprint for Success in the Ecommerce Space for Alcoholic Beverages, forecasts that by 2024 beverage alcohol eCommerce in the US will reach 101.2m nine-liter cases, with an estimated value of $13.4 billion.
“Online shopping in the US is a $755bn industry, and though alcohol represents a relatively small portion of that today, it’s expected to explode in the coming years,” says Adam Rogers, North America Research Director at IWSR. “Clearly, beverage alcohol brands and retailers should have strong eCommerce strategies in place to profit from this important shift in consumer purchase preference.”