Table of Contents
Overview
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- What you need to know
- Definition
Executive Summary
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- The issues
- Slow growth of white spirits continues
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- Figure 1: US volume sales of white spirits, 2011-21
- Dark spirits gain traction
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- Figure 2: US volume sales of dark spirits, 2012 – 2016
- Off-premise consumption tops on-premise
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- Figure 3: US volume sales of dark and white distilled spirits, off premise vs. on premise, 2011-16
- Millennials drive on-premise consumption
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- Figure 4: On-premise alcohol consumption frequency, at least weekly, by generation, February 2016
- Tequila, vodka buoy other white spirits
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- Figure 5: US volume sales and forecast of white spirits, by segment, 2011-21
- The opportunities
- Leverage cross category consumption
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- Figure 6: White spirits consumption, by white spirits consumption, August 2016
- On-premise shows potential
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- Figure 7: Total US sales and fan chart forecast of on-premise alcohol at current prices, 2010-20
- Figure 8: Total US sales and forecast of on-premise alcohol, at current prices, 2010-20
- Keep your eye on Millennials, but don’t forget others
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- Figure 9: Median household income, by age of householder, 2014
- What it means
The Market - What you need to know
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- Distilled spirits aren’t still
- Tequila is shaking up the category, vodka chills out
- Off-premise is the (not so) new nightclub
- Dark competition grows
Market Size and Forecast
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- Historic and projected sales performance
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- Figure 10: Total US sales and fan chart forecast of distilled spirits, at current prices, 2011-21
- Figure 11: Total US sales and forecast of on and off-premise Distilled Spirits, at current prices, 2011-21
- Figure 12: Total US sales and forecast of on and off-premise distilled spirits, at inflation-adjusted prices, 2011-21
Market Breakdown
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- White spirits tread water
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- Figure 13: US volume sales of white spirits, by segment, at current prices, 2016
- Tequila well poised for category growth
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- Figure 14: US volume sales and forecast of white spirits, by segment, 2011-21
- Figure 15: US volume sales and forecast of white spirits, by segment, 2011-21
- Vodka continues it reign
- Rum brands slipping
- Gin continues to struggle
Market Perspective
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- Beer, wine consumption dominate the alcoholic beverage occasion
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- Figure 16: Any alcohol consumption, October 2015
- Majority of white spirits drinkers also drink dark spirits
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- Figure 17: Dark spirits consumption, by white spirits consumption, August 2016
- On-premise consumption has room to grow
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- Figure 18: US volume sales of dark and white distilled spirits, off premise vs. on premise, 2011-16
- Location matters
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- Figure 19: Consumption location of liquor, September 2016
Market Factors
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- Consumer confidence
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- Figure 20: Consumer Sentiment Index, January 2007-May 2016
- Millennial, iGeneration populations have positive growth
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- Figure 21: Population by generation, percentage change, 2011-21
- Hispanic, Asian populations expect to see growth
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- Figure 22: Population by race and Hispanic origin, 2011-21
Key Players – What You Need to Know
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- Premium continues to drive innovation and the market
- White spirits get crafty
Leading Companies and Brands
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- Flavor stirs interest in vodka
- Rum brands on the rocks
- Tequila is for everyone
- Value gins struggle
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- Figure 23: Top menued liquors at restaurants, Q4 2012-Q4 2015
What’s Working?
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- Innovation with real flavors, ingredients
- Craft and small batch
- Whimsical bottle design
- Flavors and fun drive growth
- Focus on legacy and heritage
- Super premium offers bright spot in struggling segment
What’s Struggling?
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- Big brands
- Gin
- Rum
What’s Next?
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- Cocktail kits
- Beverage blurring
- Mezcal
The Consumer – What You Need to Know
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- Vodkas versatility aids category leadership
- White spirits drinkers stock the bar
- Tequila makes a run for rum
- Consumers indulge in vodka weekly
- Unflavored consumed more frequently than flavored
- Millennials are core white spirits drinkers
White Spirits Cross-consumption
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- Tequilas, gins nearing vodka, white/light rum consumption levels
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- Figure 24: White spirits consumption - Any consumption, August 2016
- Consumers drink multiple types of white spirits
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- Figure 25: White spirits consumption, by white spirits consumption, August 2016
- Older Millennials consume most types of white spirits
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- Figure 26: White spirits repertoire, August 2016
Vodka Consumer
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- Unflavored vodka consumed more frequently than flavored
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- Figure 27: White spirits consumption - Vodka, August 2016
- Men, Millennials, Hispanics over index for vodka consumption
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- Figure 28: Vodka consumption - Any consumption/at least monthly, by demographics – primary consumers, August 2016
- Opportunity to increase relevancy among women, non-Millennial, Blacks, Asians
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- Figure 29: Vodka consumption - Any consumption, by demographics – secondary consumers, August 2016
- Income drives greater consumption among younger adults
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- Figure 30: Vodka consumption - Any consumption, by age and household income, August 2016
- Vodka with juice leading drink form
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- Figure 31: Vodka drink form, August 2016
- Young Millennials stand out for unadulterated drink forms
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- Figure 32: Vodka drink form, by Millennial generations, August 2016
White/light Rum Consumer
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- Unflavored, flavored rum consumed at similar rates
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- Figure 33: White spirits consumption – White/light rum, August 2016
- Men, Millennials, Hispanics core white/light rum drinkers
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- Figure 34: White/light rum consumption - Any consumption/at least monthly, by demographics – primary consumers, August 2016
- Opportunity to increase relevancy among women, non-Millennials, Blacks, Asians
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- Figure 35: White/light rum consumption - Any consumption/at least monthly, by demographics – Secondary consumers, August 2016
- Income level affects younger consumers white/light rum consumption
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- Figure 36: White/light rum consumption - Any consumption, by age and household income, August 2016
- Soda and white/light rum leading drink form
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- Figure 37: White/light rum drink form, August 2016
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- Figure 38: White/light rum drink form, by Millennial and non-Millennial generations, August 2016
Tequila Consumer
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- One in five drink each tequila type at least monthly
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- Figure 39: White spirits consumption – Tequila, August 2016
- Older Millennials, Hispanics strongest tequila drinkers
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- Figure 40: Tequila consumption - Any consumption/at least monthly, by demographics – primary consumers, August 2016
- Opportunity to increase consumption among women, Asians
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- Figure 41: Tequila consumption -- Any consumption/at least monthly, by demographics – secondary consumers, August 2016
- Income level significantly impacts tequila consumption among those 22-54
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- Figure 42: Tequila consumption - Any consumption, by age and household income, August 2016
- In a shot, a made-from-scratch cocktail top tequila drink forms
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- Figure 43: Tequila drink form, August 2016
- Older consumers drink tequila in a cocktail
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- Figure 44: Tequila drink form, by Millennial generations, August 2016
Gin Consumer
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- One in five drink gin at least monthly
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- Figure 45: White spirits consumption – Gin, August 2016
- Older Millennials are core gin drinkers
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- Figure 46: Gin consumption - Any consumption/at least monthly, by demographics – primary consumers, August 2016
- Opportunity to reach women, Blacks, Asians
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- Figure 47: Gin consumption -- Any consumption/at least monthly, by demographics – secondary consumers, August 2016
- Higher-income level encourages greater gin consumption
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- Figure 48: Gin consumption -- Any consumption, by age and household income, August 2016
- Gin and juice leading drink form
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- Figure 49: Gin drink form, August 2016
White versus Dark Spirits Consumption
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- Majority drink more white spirits than dark
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- Figure 50: White versus dark spirits consumption, August 2016
- Older Millennials, parents consume more white spirits than dark
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- Figure 51: White versus dark spirits consumption -- More white spirits than dark spirits, by demographics, August 2016
Important White Spirits Characteristics
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- Flavor leading attribute important in white spirits selection
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- Figure 52: Important white spirits characteristics, August 2016
- Flavor greater influence on women than men
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- Figure 53: Important white spirits characteristics, by gender, August 2016
- Older Millennials influenced by niche attributes
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- Figure 54: Important white spirits characteristics, by Millennial generation, August 2016
White Spirits Flavors
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- Greatest interest in fruit flavored white spirits, opportunity with aging
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- Figure 55: White spirits flavors, August 2016
- Older consumers prefer unflavored white spirits
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- Figure 56: White spirits flavors – None of the above, I prefer unflavored, by Millennial generation, August 2016
- Older Millennials most open to niche, unique flavors
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- Figure 57: White spirits flavors, by Millennial generation, August 2016
- Mothers over index for fruit flavors, fathers prefer aged
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- Figure 58: White spirits flavors, by gender and parental status with child(ren) under 18 in the household, August 2016
Spirits Behaviors
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- Socialization, relaxation leading reasons to drink white spirits
- Experience is All
- Return to the Experts
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- Figure 59: Spirits behaviors, by white versus dark spirits consumption, August 2016
- Older Millennials looking for new experiences
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- Figure 60: Spirits behaviors, by Millennial generations, August 2016
- Parents less likely to drink for socialization, relaxation than non-parents
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- Figure 61: Spirits behaviors, by gender and parental status with child(ren) under 18 in the household, August 2016
Spirits’ value defined
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- Consumers define value, mid-range, premium, and super-premium prices
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- Figure 62: Spirits value, August 2016
- Millennials drive up price points
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- Figure 63: Spirits value, by white versus dark spirits consumption -- Mostly/only white spirits drinkers, August 2016
- Preferred spirits pricing varies with age
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- Figure 64: Spirits behaviors – Price point preferences, by generation, August 2016
- Mid-range, premium-priced spirits preferred
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- Figure 65: Spirits behaviors, by white versus dark spirits consumption, August 2016
Craft Spirits Defined
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- Craft definition differs with age
- Non-Millennials define craft as being made in small batches
- Older Millennials driven by premium ingredients
- Younger Millennials look for unique qualities
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- Figure 66: Craft spirits defined, August 2016
Appendix – Data Sources and Abbreviations
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- Data sources
- Sales data
- Fan chart forecast
- Consumer survey data
- Abbreviations and terms
- Abbreviations
- Terms
Appendix – Market
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- Figure 67: Total US sales and forecast of on and off-premise Distilled Spirits at current prices, 2011-21
- Figure 68: Total US sales and forecast of on and off-premise Distilled Spirits, at inflated prices, 2011-21
- Figure 69: US volume sales of white spirits, 2011-21
- Source: The Beverage Information & Insights Group, Liquor Handbook 2016/Mintel
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- Source: The Beverage Information & Insights Group, Liquor Handbook 2016/Mintel
- Source: The Beverage Information & Insights Group, Liquor Handbook 2016/Mintel
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- Source: The Beverage Information & Insights Group, Liquor Handbook 2016/Mintel
- Source: The Beverage Information & Insights Group, Liquor Handbook 2016/Mintel
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- Source: The Beverage Information & Insights Group, Liquor Handbook 2016/Mintel
- Source: The Beverage Information & Insights Group, Liquor Handbook 2016/Mintel
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- Source: The Beverage Information & Insights Group, Liquor Handbook 2016/Mintel
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