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Sector Trend Analysis – Beer, spirits and wine in the United States

September 2018

Executive summary

In this report, alcoholic drinks include beer and cider/perry, spirits/ready-to-drink (RTDs)/high strength premixes, and wine.

Canada and the United States (U.S.) have a solid trade relationship. The U.S. is Canada's largest export market in the world (US$27.2 billion in 2017). Canada's exports of alcoholic drinks to the U.S. totalled US$595.4 million in 2017, representing 2.2% of Canada's total export to the U.S.

In 2017 Canada exported US$42.9 million of wine to the U.S., among which icewine reached US$4.6 million, accounting for 10.7% of the total wine exports to the U.S. The compound annual growth rate for total wine was 16.0% and 12.1% for icewine from 2013 to 2017.

In 2017, retail sales of alcoholic drinks reached US$231.4 billion (on-trade: 51.0%, off-trade: 49.0%) in the U.S., with beer worth US$103.9 billion, spirits worth US$73.6 billion and wine worth US$46.3 billion.

Spirits recorded retail sale growth between 3.3% and 5.4% in every year from 2013 to 2017 in the U.S., making it the most stable and predictable category within alcoholic drinks.

In the U.S. wine market, ageing baby boomers, the largest group of the U.S. wine consumers and those most keen on the consumption of premium and luxury wines, are anticipated to decrease their rates of consumption. Meanwhile, millennials, determinedly unconventional, are expected to redefine the wine category with their sophisticated, albeit inexperienced, palates.

Introduction

In this report, alcoholic drinks include: beer and cider/perry, spirits/ready-to-drink (RTDs)/high strength premixes, and wine.

Canada's export of alcoholic drinks to the United States

Canada and the U.S. enjoy a solid trade relationship. The U.S. is Canada's largest export market in the world (US$27.2 billion for agrifood and seafood in 2017). Canada's exports of alcoholic drinks to the U.S. totalled US$595.4 million in 2017, representing 2.2% of Canada's total export to the U.S. The compound annual growth rate had a negative −1.8% from 2013 to 2017. Whisky was the biggest export to the U.S. worth US$257.4 million, followed by beer worth US$116.0 million in 2017. However both had a negative compound annual growth rate of −4.1% and −8.4% respectively from 2013 to 2017. Cider, perry, mead, saké and other fermented beverages recoded a 16.3% compound annual growth rate from 2013 to 2017, reaching US$47.4 million in 2017.

As of 2017, Canada and Mexico remained the largest exporters of spirits to the U.S. Both benefiting from close proximity to the U.S. Canadian whisky products remained popular value offerings.

Top ten alcoholic drinks Canada exported to the United States in US$ millions, 2013-2017
Description 2013 2014 2015 2016 2017 CAGR* % 2013-17
Total alcoholic drinks 683.5 640.7 619.7 608.5 595.4 −1.8
Whiskies 319.2 304.8 288.6 252.5 257.4 −4.1
Beer made from malt 187.4 164.6 147.1 112.7 116.0 −8.4
Liqueurs and cordials 107.1 92.4 91.4 136.5 112.5 5.0
Cider, perry, mead, saké and other fermented beverages 23.9 25.9 31.5 43.9 47.4 16.3
Wine of fresh grapes, including fortified wines, in containers of > 10 litres 16.5 29.4 31.0 34.0 31.3 1.6
Wine of fresh grapes, including fortified wines, in containers of <= 2 litres 7.1 8.4 11.3 12.9 10.1 4.8
Vodka 16.0 7.6 10.3 10.0 8.1 1.4
Rum and other spirits obtained by distilling fermented sugar-cane products 3.9 5.8 3.8 3.6 6.0 0.8
Ethyl alcohol of an alcoholic strength of < 80% volume, not denatured; spirits and other spirituous beverages 0.8 0.6 2.5 1.4 3.8 58.9
Wine of fresh grapes, including fortified wines, in containers of > 2 litres but <= 10 litres 0.0 0.0 0.0 0.0 1.4 N/C

Source: Global Trade Tracker, 2018

*CAGR: compound annual growth rate

N/C: Not Calculable

All wine Canada exported to the United States, by Harmonized System (HS) codes, in US$, 2013-2017
HS code Description 2013 2014 2015 2016 2017 CAGR* % 2013-17
2204 Total wine 23,659,070 38,055,483 42,361,884 46,907,663 42,869,791 16.0
22042900 Grape wine, fresh, nes, in container >10 litres 16,529,474 29,423,470 31,048,741 33,990,488 31,308,619 17.3
22042190 Other grape wine nes, in container <=2 litres 4,148,487 5,071,156 7,874,080 8,234,629 5,458,416 7.1
22042110 Icewine, in containers holding 2 litres or less 2,947,733 3,294,791 3,390,693 4,622,830 4,648,926 12.1
22042200 Grape wine, fresh, nes; in container >2 litres <=10 litres 0 0 0 0 1,400,144 N/C
22041000 Grape wines, sparkling 33,376 266,066 48,370 59,716 53,686 12.6

Source: Global Trade Tracker, 2018

*CAGR: compound annual growth rate

nes: not else specified

N/C: Not Calculable

In 2017, Canada exported US$42.9 million of wine to the U.S., among which icewine reached US$4.6 million, which accounted for 10.7% of the total wine to the U.S.  The compound annual growth rate for total wine was 16.0% and for icewine was 12.1% from 2013 to 2017.

Consumer behaviors

Changing consumer behaviour over the last several years have transformed the where and how of consumers' interaction with alcohol. While once most commonly associated with bars, dining rooms and backyards, consumers today, particularly young consumers, look beyond these confines to consume alcoholic drinks in previously unthinkable, often public locations. The boom in craft drinks encouraged consumption directly at the source, be it a vineyard, a distiller's tasting room or a brewer's taproom, fitting with the modern consumer's interest in better understanding the products they consume and witnessing alcohol's authenticity first hand. According to Euromonitor International, for beer, the most-developed craft beverage, it is estimated that as much as 10% of tap to glass beer volumes originate directly from a brewer's tank. Consumers are also increasingly bringing alcohol consumption outdoors, be it at a park alongside a picnic, on the beach with a volleyball game, or to street and music festivals. With this demand for mobility, producers of fine alcohol drinks (younger American consumers incidentally also place high value on quality) are reacting by packaging their products in single-serve, convenient packages, in many instances metal beverage cans.

Consumer trends

There is a growing trend of consumers going directly to alcohol producers for purchase. With each new generation of legal consumers of alcohol, experience and authenticity gain value over material possessions. According to Euromonitor International, this trend is expected to only gain in importance as the iGeneration adds to America's drinking cohort and travels further up the stream to alcohol's spawning grounds in search of these values.

From a manufacturer standpoint, consumption in close proximity from the place of production is lucrative, as it not only allows producers to avoid the challenging business of distribution and reap greater margins, but also gives greater accessibility to their consumers, allowing them to connect on a personal level and receive direction from those who drive their business. While on-the-go alcohol consumption has never been more in demand from consumers, a large hurdle in the form of regulation stands between alcohol and the great outdoors. As laws governing permissible alcohol consumption are generally deemed more favourable with each passing year, outdoor and on-the-go alcohol consumption are likely to continue to increase in popularity. Regardless of feasibility, single-serve, lightweight packaging is expected to persist in the years to come, as consumers are drawn to the idea of more-flexible consumption (Euromonitor International 2018).

Retail sales (including both on-trade and off-trade salesFootnote 1)

Retail sales of alcoholic drinks had a compound annual growth rate of 3.0% from 2013 to 2017, reaching US$231.4 billion in 2017 (on-trade: 51.0%, off-trade: 49.0%). Cider/perry had the highest compound annual growth rate at 13.1% over the past five years, reaching US$1.5 billion (on-trade: 55.5%, off-trade: 44.5%) in 2017.

Retail sales (on-trade and off-trade) of alcoholic drinks by category, in US$ millions, 2013-2017
Category 2013 2014 2015 2016 2017 CAGR* % 2013-17
Total alcoholic drinks 205,659.5 212,462.6 218,631.7 225,165.1 231,408.9 3.0
Beer 96,237.7 99,109.3 101,486.0 102,898.3 103,990.7 2.0
Cider/perry 940.0 1,468.8 1,607.0 1,563.7 1,539.3 13.1
RTDs/high-strength premixes 5,633.9 5,468.8 5,461.5 5,641.4 6,009.4 1.6
Spirits 62,668.9 65,218.1 67,325.9 70,452.5 73,610.4 4.1
Wine 40,179.0 41,197.7 42,751.3 44,609.2 46,259.1 3.6

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Retail sales of alcoholic drinks by sector, % value breakdown, 2017
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  • Beer: 44.9%
  • Spirits: 31.8%
  • Wine: 20.0%
  • RTDs/High-Strength Premixes: 2.6%
  • Cider/Perry: 0.7%

Source: Euromonitor International 2018

Breakdown of retail sales of alcoholic drinks, by on-trade, off-trade, in US$ millions, 2013-2017
Category Type 2013 2014 2015 2016 2017 CAGR* % 2013-17
Total alcoholic drinks Off-trade 97,145.3 100,959.0 105,891.3 109,961.3 113,340.2 3.9
On-trade 108,514.1 111,503.6 112,740.4 115,203.7 118,068.8 2.1
Beer Off-trade 44,687.4 46,477.7 48,611.9 50,079.6 50,855.7 3.3
On-trade 51,550.3 52,631.6 52,874.1 52,818.8 53,135.0 0.8
Cider/perry Off-trade 398.1 686.3 783.1 711.2 684.7 14.5
On-trade 541.9 782.5 823.9 852.5 854.6 12.1
RTDs/high-strength premixes Off-trade 2,886.0 2,789.3 2,780.7 2,897.5 3,105.9 1.9
On-trade 2,747.8 2,679.5 2,680.8 2,743.9 2,903.5 1.4
Spirits Off-trade 28,257.1 29,297.8 30,699.2 32,043.4 33,279.6 4.2
On-trade 34,411.8 35,920.3 36,626.7 38,409.1 40,330.8 4.0
Wine Off-trade 20,916.7 21,708.0 23,016.4 24,229.7 25,414.3 5.0
On-trade 19,262.3 19,489.7 19,734.9 20,379.5 20,844.8 2.0

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Forecast retail sales of alcoholic drinks by category, in US$ millions, 2018-2022
Category 2018 2019 2020 2021 2022 CAGR* % 2018-22
Total alcoholic drinks 239,413.0 247,871.1 256,783.4 266,097.2 275,597.8 3.6
Beer 106,459.6 109,323.0 112,404.4 115,610.7 118,810.4 2.8
Cider/perry 1,294.8 1,242.9 1,206.5 1,183.4 1,167.3 −2.6
RTDs/high-strength Premixes 6,500.5 6,873.0 7,232.2 7,598.8 7,976.8 5.2
Spirits 77,072.0 80,722.4 84,509.5 88,407.9 92,341.6 4.6
Wine 48,086.1 49,709.7 51,430.9 53,296.4 55,301.7 3.6

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

It is forecast that retail sales of alcoholic drinks and all its category will have positive compound annual growth rate except cider/perry: a negative −2.6% compound annual growth rate from 2018 to 2022. Retail sales of alcoholic drinks are expected to reach US$275.6 billion (50% for both on and off-trade) in 2022.

Forecast retail sales of alcoholic drinks by on-trade, off-trade, in US$ millions, 2018-2022
Category Type 2018 2019 2020 2021 2022 CAGR* % 2018-22
Total alcoholic drinks Off-trade 117,707.1 122,261.9 127,023.0 131,994.0 137,170.3 3.9
On-trade 121,705.8 125,609.1 129,760.4 134,103.2 138,427.5 3.3
Beer Off-trade 52,237.2 53,809.5 55,489.3 57,257.5 59,110.0 3.1
On-trade 54,222.4 55,513.5 56,915.0 58,353.2 59,700.4 2.4
Cider/perry Off-trade 648.5 613.5 585.5 564.1 548.6 −4.1
On-trade 646.3 629.4 621.0 619.3 618.7 −1.1
RTDs/high-strength premixes Off-trade 3,301.3 3,454.8 3,597.2 3,735.9 3,878.2 4.1
On-trade 3,199.2 3,418.2 3,634.9 3,862.8 4,098.6 6.4
Spirits Off-trade 34,734.4 36,319.0 37,992.6 39,744.1 41,545.8 4.6
On-trade 42,337.5 44,403.3 46,516.8 48,663.9 50,795.8 4.7
Wine Off-trade 26,785.7 28,065.1 29,358.2 30,692.4 32,087.8 4.6
On-trade 21,300.4 21,644.7 22,072.6 22,604.0 23,213.9 2.2

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Beer/cider/perry

The stereotypical beer drinker in the U.S. is a working-class male; however, such perceptions have gradually changed. As mass-produced domestic lagers have lost their importance in the U.S. to diverse craft and import options, beer became an attractive affordable luxury to a broad consumer base.

While consumers had once appreciated the diverse beer offerings available in bars and restaurants (on-trade, accounting for 25% sales in volume), the dramatic expansion of off-trade (sold in retail stores, accounting for 75% sales in volume) have allowed consumers to continue buying varied types of beer for consumption at home and at much more affordable prices. The price of beer is three times higher in on-trade channels than in off-trade channels.

Retail sales of beer (combination of on-trade and off-trade), unit price per litre, in US$, 2013-2017
Category 2013 2014 2015 2016 2017 CAGR* % 2013-17
Total beer 4.0 4.1 4.2 4.3 4.4 2.4
Dark beer 7.5 7.6 7.7 7.8 8.0 1.6
Lager 3.7 3.8 3.8 3.9 4.0 2.0
Non/low alcohol beer 4.0 4.1 4.1 4.2 4.3 1.8
Stout 7.8 8.1 8.4 8.5 8.8 3.1

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

The average total unit price of beer rose by 2.4% in current value terms in 2017 to reach US$4.4 per litre. This growth was ultimately symbolic of premiumisation occurring in the U.S. beer market, motivated by consumers' demand for better beer and more variety.

Retail sales of beer/cider/perry by subsector, in US$ millions, 2013-2017
Category 2013 2014 2015 2016 2017 CAGR* % 2013-17
Total beer 96,237.7 99,109.3 101,486.0 102,898.3 103,990.7 2.0
Dark beer 14,068.4 16,236.7 17,807.2 18,337.1 18,682.2 7.3
Ale 9,747.2 11,570.1 12,862.9 13,594.5 13,980.9 9.4
Weissbier/Weizen/wheat beer 4,321.1 4,666.5 4,944.3 4,742.6 4,701.2 2.1
Lager 80,071.2 80,593.0 81,236.7 82,006.4 82,683.1 0.8
Flavoured/mixed lager 1,244.8 1,212.0 1,291.4 1,304.1 1,285.7 0.8
Standard lager 78,826.5 79,381.0 79,945.3 80,702.4 81,397.4 0.8
Premium lager 26,647.3 28,305.7 30,672.4 32,505.6 34,691.6 6.8
Domestic premium lager 9,091.7 10,144.9 11,690.7 12,027.6 12,858.3 9.1
Imported premium lager 17,555.7 18,160.8 18,981.7 20,478.1 21,833.3 5.6
Mid-priced lager 35,962.9 35,166.0 33,780.9 33,136.0 32,059.2 −2.8
Economy lager 16,216.2 15,909.3 15,492.1 15,060.8 14,646.6 −2.5
Non-alcoholic beer 398.0 401.3 403.8 399.2 390.2 −0.5
Stout 1,700.2 1,878.4 2,038.3 2,155.6 2,235.3 7.1
Total cider/perry 940.0 1,468.8 1,607.0 1,563.7 1,539.3 13.1

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Beer is the most popular alcoholic drink in the U.S. where US$103.9 billion (on-trade: 51.0%, off-trade: 49.0%) worth of beer was sold in 2017. Beer grew at a 2.0% compound annual growth rate from 2013 to 2017. Dark beer grew at a 7.3% compound annual growth rate and accounted for 17.9% of the total beer sales in 2017. Ale had the highest 9.4% compound annual growth rate from 2013 to 2017 in beer category, reaching US$13.9 billion in 2017.

Breakdown of retail sales of beer/cider/perry by on-trade, off-trade, in US$ millions, 2013-2017
Category Type 2013 2014 2015 2016 2017 CAGR* % 2013-17
Total beer Off-trade 44,687.4 46,477.7 48,611.9 50,079.6 50,855.7 3.3
On-trade 51,550.3 52,631.6 52,874.1 52,818.8 53,135.0 0.8
Dark beer Off-trade 4,162.5 5,032.5 5,595.1 5,928.3 6,089.9 10.0
On-trade 9,905.8 11,204.1 12,212.1 12,408.8 12,592.2 6.2
Lager Off-trade 39,780.8 40,648.1 42,161.6 43,273.2 43,881.5 2.5
On-trade 40,290.4 39,944.8 39,075.2 38,733.3 38,801.6 −0.9
Non-alcoholic beer Off-trade 163.0 164.4 172.2 171.5 166.5 0.5
On-trade 235.0 236.9 231.6 227.7 223.7 −1.2
Stout Off-trade 581.1 632.6 683.1 706.6 717.7 5.4
On-trade 1,119.1 1,245.8 1,355.2 1,449.0 1,517.5 7.9
Total cider/perry Off-trade 398.1 686.3 783.1 711.2 684.7 14.5
On-trade 541.9 782.5 823.9 852.5 854.6 12.1

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Forecast retail sales of beer/cider/perry in the U.S by subsector, in US$ millions, 2018-2022
Category 2018 2019 2020 2021 2022 CAGR* % 2018-22
Total beer 106,459.6 109,323.0 112,404.4 115,610.7 118,810.4 2.8
Dark beer 19,336.3 20,126.0 21,001.3 21,930.7 22,912.7 4.3
Ale 14,526.4 15,131.5 15,766.3 16,439.6 17,151.5 4.2
Weissbier/Weizen/wheat beer 4,809.9 4,994.5 5,235.0 5,491.1 5,761.2 4.6
Lager 84,413.5 86,362.2 88,419.1 90,530.4 92,574.2 2.3
Flavoured/mixed lager 1,301.2 1,325.2 1,355.6 1,391.6 1,432.8 2.4
Standard lager 83,112.2 85,037.0 87,063.5 89,138.8 91,141.4 2.3
Premium lager 37,159.0 39,679.7 42,211.1 44,712.0 47,109.1 6.1
Domestic premium lager 13,885.1 14,974.2 16,072.5 17,160.4 18,149.4 6.9
Imported premium lager 23,273.9 24,705.5 26,138.6 27,551.6 28,959.7 5.6
Mid-priced lager 31,432.2 30,917.5 30,494.4 30,138.9 29,797.7 −1.3
Economy lager 14,521.1 14,439.8 14,358.0 14,287.9 14,234.6 −0.5
Non-alcoholic beer 393.9 407.7 427.6 453.9 487.5 5.5
Stout 2,315.9 2,427.1 2,556.4 2,695.7 2,836.1 5.2
Total cider/perry 1,294.8 1,242.9 1,206.5 1,183.4 1,167.3 −2.6

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

It is forecast that retail sales of beer will continue to grow at a 2.8% compound annual growth rate from 2018 to 2022, reaching US$118.8 billion (on-trade: 50%, off-trade: 50%) in 2022. Dark beer will continue to be one of the fastest growing subsectors with a 4.3% compound annual growth rate from 2018 to 2022, reaching US$22.9 billion (on-trade: 67.2%, off-trade: 32.8%) in 2022. Domestic premium lager will gain the highest (6.9%) compound annual growth rate from 2018 to 2022.

The top four beer brands in the U.S. – Bud Light, Budweiser, Coors Light and Miller Lite – are all positioned within the mid-priced band, making this the most competitive segment in the country.

According to Euromonitor International, around 94% of all beer purchased in the U.S. was produced at a domestic facility as of 2014. As the country is one of the heaviest consumers of beer, it is cheaper for manufacturers to produce and ship the product from within the U.S.

Cider/perry is expected to decline at a −2.6% compound annual growth rate in retail sales from 2018 to 2022, recording US$1.2 billion (on-trade: 53.0%, off-trade: 47.0%) in 2022.

Younger consumers and women remain the core consumer bases for cider/perry. Unlike the situation in the UK where cider is consumed rather equally between genders, in the U.S. consumers are more heavily skewed towards women, who are attracted by cider's refreshing and sweet taste. As a result, cider is in many ways perceived as a feminine product by American men; however, cider/perry producers are making efforts to change this perception with new product launches featuring drier apples and/or hops. Such developments in terms of ingredients assist in making cider more bitter, and as a result, men are expected to represent a greater share of consumers in the years to come, as consumers attracted to cider/perry products solely for their sweet taste move on to hard sodas and elsewhere.

Breakdown of forecast retail sales of beer by on-trade, off-trade, in US$ millions, 2018-2022
Category Type 2018 2019 2020 2021 2022 CAGR* % 2018-22
Total beer Off-trade 52,237.2 53,809.5 55,489.3 57,257.5 59,110.0 3.1
On-trade 54,222.4 55,513.5 56,915.0 58,353.2 59,700.4 2.4
Dark beer Off-trade 6,329.7 6,608.8 6,895.1 7,198.3 7,517.8 4.4
On-trade 13,006.6 13,517.2 14,106.2 14,732.4 15,394.8 4.3
Lager Off-trade 45,001.4 46,251.1 47,590.1 48,997.5 50,467.2 2.9
On-trade 39,412.1 40,111.0 40,829.0 41,532.9 42,107.0 1.7
Non-alcoholic beer Off-trade 165.5 167.8 173.5 183.3 198.0 4.6
On-trade 228.5 239.9 254.1 270.6 289.5 6.1
Stout Off-trade 740.7 781.7 830.6 878.4 927.0 5.8
On-trade 1,575.2 1,645.4 1,725.8 1,817.2 1,909.1 4.9
Total cider/perry Off-trade 648.5 613.5 585.5 564.1 548.6 −4.1
On-trade 646.3 629.4 621.0 619.3 618.7 −1.1

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Top 10 countries of total value sales of beer, in US$ millions, 2013-2017
Country 2013 2014 2015 2016 2017 CAGR* % 2013-17
United States 96,237.7 99,109.3 101,486.0 102,898.3 103,990.7 2.0
China 66,341.1 71,228.7 75,613.5 79,478.6 84,728.3 6.3
Japan 37,324.5 37,573.0 37,840.9 37,461.7 37,264.3 0.0
Germany 30,788.9 31,183.2 31,174.7 31,327.8 31,784.7 0.8
United Kingdom 25,906.3 26,326.1 26,421.7 26,336.8 26,761.6 0.8
Russia 17,129.7 17,580.9 17,773.0 18,986.2 19,216.7 2.9
Spain 14,621.9 14,731.5 15,139.8 15,746.6 16,314.1 2.8
Canada 12,671.0 12,877.1 13,087.9 13,326.9 13,477.4 1.6
Poland 7,963.3 8,033.0 8,071.9 8,148.1 8,162.2 0.6
India 5,654.2 6,546.9 7,313.4 8,060.4 8,627.1 11.1

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

The U.S. was the largest country for total beer value sales of beer, worth US$103.9 billion in 2017. Canada ranked as the eighth largest country for total value sales of beer, worth US$13.5 billion (on-trade: 43.4%, off-trade: 56.6%) in 2017.

Breakdown of top 10 countries' total value sales of beer by on-trade, off-trade, in US$ millions, 2013-2017
Country Type 2013 2014 2015 2016 2017 CAGR* % 2013-17
United States Off-trade 44,687.4 46,477.7 48,611.9 50,079.6 50,855.7 3.3
On-trade 51,550.3 52,631.6 52,874.1 52,818.8 53,135.0 0.8
China Off-trade 23,401.9 24,610.8 25,805.8 26,682.1 28,094.3 4.7
On-trade 42,939.2 46,617.9 49,807.7 52,796.4 56,634.0 7.2
Japan Off-trade 19,103.7 19,541.9 19,566.2 19,220.4 19,319.9 0.3
On-trade 18,220.8 18,031.1 18,274.7 18,241.3 17,944.4 −0.4
Germany Off-trade 7,716.6 7,955.3 7,965.1 8,032.3 8,168.5 1.4
On-trade 23,072.3 23,227.9 23,209.6 23,295.5 23,616.2 0.6
United Kingdom Off-trade 8,950.2 9,041.9 8,964.7 8,842.2 9,038.5 0.2
On-trade 16,956.1 17,284.2 17,457.0 17,494.6 17,723.1 1.1
Russia Off-trade 13,852.6 14,206.6 14,208.2 15,099.1 15,108.7 2.2
On-trade 3,277.0 3,374.3 3,564.8 3,887.1 4,108.0 5.8
Spain Off-trade 2,227.5 2,233.4 2,293.8 2,353.8 2,405.5 1.9
On-trade 12,394.4 12,498.0 12,846.0 13,392.7 13,908.5 2.9
Canada Off-trade 7,274.5 7,345.0 7,397.6 7,535.8 7,632.3 1.2
On-trade 5,396.4 5,532.1 5,690.3 5,791.1 5,845.1 2.0
Poland Off-trade 5,156.4 5,155.6 5,172.2 5,212.5 5,128.0 −0.1
On-trade 2,806.9 2,877.5 2,899.7 2,935.6 3,034.2 2.0
India Off-trade 3,575.3 4,111.6 4,580.3 5,034.4 5,401.9 10.9
On-trade 2,078.9 2,435.4 2,733.1 3,026.0 3,225.3 11.6

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Spirits and ready-to-drink (RTDs)

As the U.S. economy continues along its slow recovery, the role played by spirits changed to one of high-quality, premium products. Spirits recorded retail sale growth between 3.3% and 5.4% in every year from 2013 to 2017, making it the most stable and predictable category within alcoholic drinks. While growth of the various categories of spirits was far less consistent, consumers tended to substitute one spirit for another, ensuring modest retail growth persisted.

Stereotypically, American men consume whiskies neat and women prefer spirits in fruity cocktails; however, such consumption trends have been breaking down as the popularity of cocktails has grown across genders and demographics.

As of 2017, Canada and Mexico remained the largest exporters of spirits to the U.S. Both benefiting from close proximity to the U.S. Canadian whisky products remained popular value offerings and Mexican products benefited from a rapidly growing Hispanic population in the country. As a result, consumer preferences in the U.S. are increasingly favouring tequila-based drinks, which helped Mexico increase its exports to the U.S. with a 7% compound annual growth rate from 2013 to 2017, reaching US$6.2 billion (on-trade: 46.8%, off-trade: 53.2%) in 2017.

Retail sales of spirits and ready-to-drink by subsector, 2013-2017, in US$ millions
Category 2013 2014 2015 2016 2017 CAGR* % 2013-17
Total RTDs 5,073.8 5,005.1 5,025.6 5,225.8 5,602.9 2.5
Total spirits 62,668.9 65,218.1 67,325.9 70,452.5 73,610.4 4.1
Brandy and cognac 6,024.6 6,572.6 7,347.6 8,303.2 9,109.1 10.9
Brandy 1,866.6 1,961.0 1,966.8 2,030.3 2,068.0 2.6
Cognac 4,157.9 4,611.6 5,380.7 6,272.9 7,041.1 14.1
Liqueurs 7,329.5 7,942.6 8,123.5 8,036.0 8,080.0 2.5
Bitters 1,111.9 1,012.5 972.2 941.9 933.1 −4.3
Cream-based liqueurs 1,017.3 1,013.3 999.3 1,011.5 1,037.9 0.5
Other Liqueurs 5,200.3 5,916.9 6,151.9 6,082.6 6,108.9 4.1
Rum 6,494.6 6,311.6 6,154.1 6,120.6 6,080.3 −1.6
Dark rum 3,219.7 3,235.1 3,217.6 3,245.4 3,270.5 0.4
White rum 3,274.9 3,076.6 2,936.5 2,875.2 2,809.7 −3.8
Tequila (and mezcal) 4,654.7 4,950.8 5,279.8 5,679.9 6,234.9 7.6
Whiskies 17,602.0 18,301.2 19,239.1 20,379.0 21,537.7 5.2
Bourbon/other US whisky 7,242.1 7,668.5 8,158.6 8,680.0 9,241.3 6.3
Canadian whisky 4,674.3 4,692.8 4,745.2 4,881.6 4,963.0 1.5
Irish whiskey 1,576.5 1,722.4 1,950.2 2,224.2 2,536.1 12.6
Blended scotch whisky 2,725.4 2,701.7 2,701.3 2,738.8 2,785.5 0.5
Single malt scotch whisky 1,336.4 1,452.9 1,584.2 1,704.7 1,797.9 7.7
White spirits 19,915.2 20,507.7 20,553.5 21,289.0 21,909.0 2.4
Gin 2,862.8 2,874.2 2,862.7 2,940.0 2,999.5 1.2
Vodka 17,052.4 17,633.6 17,690.8 18,349.0 18,909.5 2.6
Other spirits 648.4 631.6 628.3 644.9 659.5 0.4

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Retail sales of spirits grew at a 4.1% compound annual growth rate from 2013 to 2017, reaching US$73.6 billion (on-trade: 54.8%, off-trade: 45.2%) in 2017. Brandy and Cognac was the fast growing subsector, gaining 10.9% compound annual growth rate from 2013 to 2017, reaching US$9.1 billion (on-trade: 70.9%, off-trade: 29.1%) in 2017. Cognac had the highest compound annual growth rate of 14.1% from 2013 to 2017. Canadian whisky grew at a 1.5% compound annual growth rate over the same past five years, reaching almost US$5 billion in 2017.

RTDs also grew at a 2.5% compound annual growth rate from 2013 to 2017, reaching US$5.6 billion in 2017. Of all the various categories within spirits in the U.S., just two posted a retail sales decline in 2017: bitters (−4.3% CAGR) and rum (−1.6% CAGR).

Retail sales of spirits and Ready-to-Drinks by on-trade, off-trade, in US$ millions, 2013-2017
Category Type 2013 2014 2015 2016 2017 CAGR* % 2013-17
Total ready-to-drink Off-trade 2,886.0 2,789.3 2,780.7 2,897.5 3,105.9 1.9
On-trade 2,747.8 2,679.5 2,680.8 2,743.9 2,903.5 1.4
Total spirits Off-trade 28,257.1 29,297.8 30,699.2 32,043.4 33,279.6 4.2
On-trade 34,411.8 35,920.3 36,626.7 38,409.1 40,330.8 4.0
Brandy and cognac Off-trade 1,857.8 2,037.2 2,233.5 2,461.2 2,652.8 9.3
On-trade 4,166.8 4,535.4 5,114.1 5,842.0 6,456.4 11.6
Liqueurs Off-trade 2,824.1 3,075.5 3,186.9 3,151.9 3,139.1 2.7
On-trade 4,505.3 4,867.1 4,936.6 4,884.1 4,940.9 2.3
Rum Off-trade 3,150.9 3,071.4 3,061.6 3,044.2 3,028.8 −1.0
On-trade 3,343.8 3,240.3 3,092.5 3,076.4 3,051.5 −2.3
Whiskies Off-trade 8,517.5 8,877.6 9,454.9 10,129.2 10,699.9 5.9
On-trade 9,084.5 9,423.6 9,784.2 10,249.7 10,837.8 4.5
Tequila (and mezcal) Off-trade 2,550.2 2,624.8 2,849.0 3,056.5 3,318.4 6.8
On-trade 2,104.6 2,326.0 2,430.8 2,623.4 2,916.6 8.5
White spirits Off-trade 9,090.1 9,350.1 9,650.7 9,931.5 10,165.4 2.8
On-trade 10,825.2 11,157.7 10,902.8 11,357.5 11,743.6 2.1
Other spirits Off-trade 266.6 261.3 262.6 268.9 275.3 0.8
On-trade 381.7 370.3 365.8 376.0 384.2 0.2

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Forecast retail sales of spirits and RTDs by subsector, in US$ millions, 2018-2022
Category 2018 2019 2020 2021 2022 CAGR* % 2018-22
Total RTDs 6,091.0 6,458.9 6,812.9 7,172.2 7,541.2 5.5
Total spirits 77,072.0 80,722.4 84,509.5 88,407.9 92,341.6 4.6
Brandy and cognac 9,911.6 10,714.2 11,565.7 12,428.6 13,282.3 7.6
Brandy 2,148.0 2,275.6 2,437.4 2,623.8 2,803.8 6.9
Cognac 7,763.6 8,438.6 9,128.4 9,804.7 10,478.5 7.8
Liqueurs 8,195.3 8,354.1 8,522.5 8,667.7 8,778.8 1.7
Bitters 931.6 935.4 944.6 957.1 971.7 1.1
Cream-based liqueurs 1,067.9 1,102.4 1,136.0 1,169.9 1,203.3 3.0
Other liqueurs 6,195.8 6,316.3 6,441.8 6,540.7 6,603.8 1.6
Rum 6,157.6 6,291.0 6,468.0 6,681.3 6,923.2 3.0
Dark rum 3,360.4 3,491.0 3,652.0 3,837.6 4,041.5 4.7
White rum 2,797.2 2,800.0 2,816.0 2,843.7 2,881.7 0.7
Tequila (and mezcal) 6,758.5 7,242.9 7,676.8 8,085.6 8,514.2 5.9
Whiskies 22,804.2 24,164.9 25,558.0 26,999.9 28,460.7 5.7
Bourbon/other US whisky 9,877.1 10,547.5 11,230.2 11,914.5 12,582.7 6.2
Canadian whisky 5,080.6 5,230.0 5,389.6 5,561.7 5,741.1 3.1
Irish Whisky 2,819.9 3,087.1 3,320.8 3,541.2 3,757.0 7.4
Blended scotch whisky 2,842.5 2,914.4 2,988.9 3,065.3 3,145.4 2.6
Single malt scotch whisky 1,894.4 2,008.6 2,141.8 2,299.7 2,477.7 6.9
White spirits 22,566.0 23,255.0 23,994.9 24,797.3 25,610.1 3.2
Gin 3,114.8 3,259.7 3,430.9 3,615.1 3,798.7 5.1
Vodka 19,451.3 19,995.3 20,564.0 21,182.3 21,811.4 2.9
Other Spirits 678.7 700.2 723.5 747.6 772.3 3.3

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

The retail sales of spirits are anticipated to grow at a 4.6% compound annual growth rate from 2018 to 2022, reaching US$92.3 billion (on-trade: 55.0%, off-trade: 45.0%) in 2022. Consumption of spirits per capita by legal-aged consumers is expected to grow from 8.3 litres in 2017 to 8.7 litres per person in 2021 (data only available until 2021).

RTDs is expected to grow at a compound annual growth rate of 5.5% in retail sales over the forecast period, reaching US$7.5 billion in 2022.

The consumption of RTDs/high-strength premixes is greatest during the summer months, when these products are considered an alternative to beers during at-home entertainment events, most notably barbecues when family and friends congregate outdoors on weekends and during holidays. Since many RTDs/high-strength premixes are prepared cocktails, consumers favour them for larger events when preparing cocktails by hand is not feasible due to time and financial reasons, providing guests with an alcoholic beverage option beyond beer and wine.

Young women used to be the key consumers of RTDs/high-strength premixes, although this gradually changed with an increasing base of both male and female consumers opting for such convenient alternatives. However, RTDs/high-strength premixes continue to appeal to younger consumers, who prefer sweeter flavours and moderate alcohol content when compared with traditional spirits.

Forecast of retail sales of spirits and ready-to-drink by on-trade, off-trade, in US$ millions, 2018-2022
Category Type 2018 2019 2020 2021 2022 CAGR* % 2018-22
Total ready-to-drink Off-trade 3,301.3 3,454.8 3,597.2 3,735.9 3,878.2 4.1
On-trade 3,199.2 3,418.2 3,634.9 3,862.8 4,098.6 6.4
Total spirits Off-trade 34,734.4 36,319.0 37,992.6 39,744.1 41,545.8 4.6
On-trade 42,337.5 44,403.3 46,516.8 48,663.9 50,795.8 4.7
Brandy and cognac Off-trade 2,875.4 3,111.2 3,353.6 3,611.8 3,873.4 7.7
On-trade 7,036.2 7,603.0 8,212.1 8,816.7 9,408.9 7.5
Liqueurs Off-trade 3,176.9 3,261.3 3,380.4 3,517.1 3,652.4 3.5
On-trade 5,018.4 5,092.8 5,142.0 5,150.5 5,126.4 0.5
Rum Off-trade 3,046.2 3,081.7 3,135.2 3,205.3 3,288.2 1.9
On-trade 3,111.4 3,209.3 3,332.8 3,476.0 3,635.0 4.0
Whiskies Off-trade 3,594.4 3,854.7 4,091.6 4,311.0 4,543.0 6.0
On-trade 3,164.0 3,388.2 3,585.2 3,774.6 3,971.2 5.8
Tequila (and mezcal) Off-trade 11,323.7 11,985.0 12,665.7 13,375.2 14,121.4 5.7
On-trade 11,480.6 12,179.9 12,892.4 13,624.6 14,339.3 5.7
White spirits Off-trade 10,434.4 10,733.1 11,064.8 11,412.3 11,745.8 3.0
On-trade 12,131.7 12,521.9 12,930.1 13,385.0 13,864.3 3.4
Other spirits Off-trade 283.4 292.0 301.4 311.3 321.6 3.2
On-trade 395.3 408.2 422.2 436.3 450.7 3.3

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Top ten countries consuming the most spirits in million litres, 2013-2017
Country 2013 2014 2015 2016 2017 CAGR* % 2013-17
China 5,284.0 5,370.0 5,585.6 5,695.7 5,777.4 2.3
India 2,510.4 2,612.4 2,568.4 2,627.3 2,688.5 1.7
United States 1,820.9 1,856.1 1,897.2 1,948.1 1,998.9 2.4
Russia 1,542.6 1,385.2 1,221.3 1,220.0 1,219.2 −5.7
South Korea 1,234.8 1,327.1 1,381.2 1,342.1 1,343.3 2.1
Japan 1,044.7 1,043.7 1,028.5 1,010.9 1,005.4 −1.0
Thailand 726.1 732.2 747.6 723.5 745.7 0.7
Brazil 725.7 753.2 726.4 712.5 711.3 −0.5
Philippines 636.5 671.7 647.1 643.7 648.1 0.5
Germany 480.7 480.4 475.2 476.3 477.0 −0.2
Canada (27) 153.6 154.6 158.5 161.5 164.5 1.7

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

China consumed 5.8 billion litres of spirits, followed by India, consuming 2.7 billion litres and the U.S. consuming 1.9 billion litres in 2017. Canada ranked twenty-seventh largest country consuming the spirits (164.5 million litres) in 2017.

Wine

The wine market in the U.S. is at a crossroads, whereby trends are evolving alongside an ongoing demographic shift. The importance of the Silent Generation is fading while the ageing of baby boomers is sapping the wine market of its most loyal and lavish consumers. While millennials, and to a lesser degree generation X, are proving to be quite enthusiastic consumers of wine, their purchasing habits pose considerable differences for the wine industry to come to terms with.

Continued flux in the U.S. demographic makeup is expected to be fundamental to developments found in the U.S. wine market. Ageing baby boomers, the largest group of U.S. wine consumers and those most keen on the consumption of premium and luxury wines, are anticipated to decrease their rates of consumption. Meanwhile, millennials, determinedly unconventional, are expected to redefine the wine category with their sophisticated, albeit inexperienced, palates. As they age, earning higher incomes and developing greater familiarity with wine, it is expected that millennials' consumption of blended wines will settle to make way for specific items.

Young consumers in the U.S., the fastest growing group of wine consumers, have shown a preference for convenience and a willingness to break with convention. This generation is also responsible for the trend towards smaller and frequently single-person households. Significant opportunity exists for brands willing to develop smaller packaging solutions to suit consumers that live alone and may wish to have just one or two glasses without wasting the rest of a bottle, as well as those that are consuming wine in less-typical locations.

A vast majority of U.S. wine consumption is of domestically produced wine from the state of California; however, wines from the states of Washington and Oregon are increasingly viewed as strong competitors in terms of quality. Italian wine is the most imported foreign wine, with France being the second largest exporter of European wine to the U.S. by volume.

Retail sales of wine by subsector, in US$ millions, 2013-2017
Category 2013 2014 2015 2016 2017 CAGR* % 2013-17
Wine 40,179.0 41,197.7 42,751.3 44,609.2 46,259.1 3.6
Fortified wine and vermouth 3,090.0 3,065.4 3,129.7 3,213.7 3,265.2 1.4
Port 138.0 144.6 149.7 149.4 153.8 2.7
Sherry 48.3 47.5 46.7 45.9 45.9 −1.3
Vermouth 405.2 409.7 419.3 434.0 456.4 3.0
Other fortified wine 2,498.4 2,463.6 2,514.0 2,584.4 2,609.0 1.1
Non-grape wine 323.5 332.2 339.8 396.2 402.6 5.6
Rice wine 323.5 332.2 339.8 396.2 402.6 5.6
Sparkling wine 3,285.2 3,522.3 3,947.1 4,410.3 4,736.1 9.6
Champagne 969.1 1,047.8 1,150.2 1,233.1 1,329.5 8.2
Other sparkling wine 2,316.1 2,474.5 2,796.8 3,177.2 3,406.6 10.1
Still light grape wine 33,480.4 34,277.8 35,334.7 36,589.0 37,855.3 3.1
Still red wine 17,561.3 18,300.1 19,061.6 19,800.4 20,424.1 3.8
Still rosé wine 1,689.4 1,688.5 1,731.9 1,862.3 2,001.1 4.3
Still white wine 14,229.7 14,289.2 14,541.2 14,926.3 15,430.2 2.0

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Retail sales of wine grew at a 3.6% compound annual growth rate from 2013 to 2017, reaching US$46.3 billion (on-trade: 45.0%, off-trade: 55.0%) in 2017. This sustained growth was indicative of Americans' all-round unending interest in wine. Not long ago, wine was seen as luxury goods reserved for elites; however, such perceptions have whittled away to near non-existence as barriers to consumption fell. As technology and resources related to wine production have advanced, wine consistency and quality has improved, giving consumers access to higher-quality wine and better value. Sparkling wine was the fastest growing category within wine for the fifth year running in 2017. The compound annual growth rate was 9.6% from 2013 to 2017. Non-champagne wine grew at a 10.1% compound annual growth rate for the past five years, reaching US$3.4 billion (on-trade: 38.7%, off-trade: 61.3%) in 2017.

Retail sales of wine by on-trade, off-trade, in US$ millions, 2013-2017
Category Type 2013 2014 2015 2016 2017 CAGR* % 2013-17
Wine Off-trade 20,916.7 21,708.0 23,016.4 24,229.7 25,414.3 5.0
On-trade 19,262.3 19,489.7 19,734.9 20,379.5 20,844.8 2.0
Fortified wine and Vermouth Off-trade 1,406.4 1,368.1 1,385.3 1,380.2 1,381.3 −0.4
On-trade 1,683.5 1,697.3 1,744.4 1,833.5 1,883.9 2.9
Port Off-trade 68.6 72.3 74.4 73.5 75.0 2.3
On-trade 69.4 72.3 75.3 75.9 78.8 3.2
Sherry Off-trade 27.0 25.5 24.5 23.5 23.2 −3.7
On-trade 21.3 22.0 22.2 22.4 22.7 1.6
Vermouth Off-trade 65.7 65.1 67.3 69.9 71.5 2.1
On-trade 339.6 344.6 352.0 364.0 384.9 3.2
Other fortified Wine Off-trade 1,245.1 1,205.2 1,219.1 1,213.3 1,211.6 −0.7
On-trade 1,253.3 1,258.4 1,294.9 1,371.2 1,397.5 2.8
Non-grape wine Off-trade 50.5 53.0 55.3 65.7 68.1 7.8
On-trade 272.9 279.2 284.5 330.5 334.5 5.2
Rice wine Off-trade 50.5 53.0 55.3 65.7 68.1 7.8
On-trade 272.9 279.2 284.5 330.5 334.5 5.2
Sparkling wine Off-trade 1,861.9 2,024.1 2,295.6 2,603.5 2,789.2 10.6
On-trade 1,423.4 1,498.3 1,651.5 1,806.8 1,946.9 8.1
Champagne Off-trade 510.7 546.9 593.0 644.7 699.5 8.2
On-trade 458.4 500.9 557.2 588.4 630.0 8.3
Other sparkling wine Off-trade 1,351.1 1,477.2 1,702.5 1,958.8 2,089.7 11.5
On-trade 965.0 997.4 1,094.3 1,218.4 1,316.9 8.1
Still light grape wine Off-trade 17,597.9 18,262.9 19,280.2 20,180.3 21,175.8 4.7
On-trade 15,882.5 16,014.9 16,054.5 16,408.7 16,679.6 1.2
Still red wine Off-trade 8,677.1 9,112.0 9,666.2 10,364.8 10,882.1 5.8
On-trade 8,884.2 9,188.1 9,395.4 9,435.5 9,542.0 1.8
Still rosé wine Off-trade 1,256.0 1,252.3 1,279.9 1,365.1 1,480.6 4.2
On-trade 433.3 436.2 452.0 497.2 520.5 4.7
Still white wine Off-trade 7,664.8 7,898.6 8,334.2 8,450.3 8,813.1 3.6
On-trade 6,564.9 6,390.6 6,207.0 6,476.0 6,617.1 0.2

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Forecast retail sales of wine by subsector, in US$ millions, 2018-2022
Category 2018 2019 2020 2021 2022 CAGR* % 2018-22
Wine 48,086.1 49,709.7 51,430.9 53,296.4 55,301.7 3.6
Fortified wine and vermouth 3,432.7 3,548.0 3,664.1 3,784.3 3,910.7 3.3
Port 163.2 167.8 172.7 178.1 183.8 3.0
Sherry 47.8 49.7 50.8 51.7 52.4 2.3
Vermouth 490.3 518.7 546.2 572.9 599.6 5.2
Other fortified wine 2,731.5 2,811.8 2,894.3 2,981.6 3,074.9 3.0
Non-grape wine 443.4 478.4 516.3 547.5 576.0 6.8
Rice wine 443.4 478.4 516.3 547.5 576.0 6.8
Sparkling wine 5,323.5 5,829.9 6,326.5 6,810.8 7,312.9 8.3
Champagne 1,468.9 1,583.5 1,702.7 1,822.2 1,947.9 7.3
Other sparkling wine 3,854.7 4,246.4 4,623.8 4,988.7 5,365.0 8.6
Still light grape wine 38,886.4 39,853.4 40,924.0 42,153.7 43,502.2 2.8
Still red wine 21,788.1 22,531.0 23,329.2 24,175.3 25,067.8 3.6
Still rosé wine 2,135.5 2,249.2 2,353.2 2,451.3 2,547.4 4.5
Still white wine 14,962.8 15,073.2 15,241.6 15,527.1 15,887.0 1.5

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

It is forecast that retail sales of wine will continue to grow at a compound annual growth rate of 3.6% from 2018 to 2022, reaching US$55.3 billion (on-trade: 42.0%, off-trade: 58.0%) in 2022. Sparkling wine will continue to have the fastest compound annual growth rate of 8.3%, reaching US$7.3 billion (on-trade: 38.7%, off-trade: 61.3%) in 2022.

Forecast retail sales of wine by off-trade, on-trade, in US$ millions, 2018-2022
Category Type 2018 2019 2020 2021 2022 CAGR* % 2018-22
Wine Off-trade 26,785.7 28,065.1 29,358.2 30,692.4 32,087.8 4.6
On-trade 21,300.4 21,644.7 22,072.6 22,604.0 23,213.9 2.2
Fortified wine and Vermouth Off-trade 1,436.3 1,464.7 1,493.3 1,523.2 1,554.7 2.0
On-trade 1,996.4 2,083.4 2,170.8 2,261.1 2,355.9 4.2
Port Off-trade 79.3 81.3 83.6 86.3 89.4 3.0
On-trade 83.8 86.5 89.1 91.7 94.4 3.0
Sherry Off-trade 24.0 25.1 25.4 25.6 25.5 1.5
On-trade 23.8 24.6 25.4 26.1 26.8 3.0
Vermouth Off-trade 70.8 72.3 73.9 75.8 77.8 2.4
On-trade 419.4 446.4 472.3 497.1 521.9 5.6
Other fortified Wine Off-trade 1,262.1 1,285.9 1,310.3 1,335.5 1,362.0 1.9
On-trade 1,469.3 1,525.9 1,584.0 1,646.2 1,712.8 3.9
Non-grape wine Off-trade 76.2 82.2 88.2 93.8 99.0 6.8
On-trade 367.2 396.2 428.1 453.7 477.0 6.8
Rice wine Off-trade 76.2 82.2 88.2 93.8 99.0 6.8
On-trade 367.2 396.2 428.1 453.7 477.0 6.8
Sparkling wine Off-trade 3,141.5 3,483.0 3,817.8 4,144.1 4,484.9 9.3
On-trade 2,182.1 2,346.9 2,508.7 2,666.7 2,827.9 6.7
Champagne Off-trade 766.2 829.7 896.9 963.0 1,032.9 7.8
On-trade 702.7 753.7 805.7 859.2 915.0 6.8
Other sparkling wine Off-trade 2,375.3 2,653.3 2,920.8 3,181.1 3,452.1 9.8
On-trade 1,479.4 1,593.1 1,703.0 1,807.5 1,912.9 6.6
Still light grape wine Off-trade 22,131.7 23,035.2 23,959.0 24,931.3 25,949.0 4.1
On-trade 16,754.7 16,818.2 16,965.0 17,222.5 17,553.1 1.2
Still red wine Off-trade 11,301.3 11,879.2 12,447.0 13,018.2 13,599.5 4.7
On-trade 10,486.8 10,651.8 10,882.2 11,157.1 11,468.3 2.3
Still rosé wine Off-trade 1,588.1 1,676.4 1,755.6 1,829.7 1,903.8 4.6
On-trade 547.4 572.8 597.7 621.6 643.7 4.1
Still white wine Off-trade 9,242.3 9,479.6 9,756.4 10,083.4 10,445.8 3.1
On-trade 5,720.6 5,593.6 5,485.2 5,443.7 5,441.2 −1.2

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Top ten countries consuming the most wine, in million litres, 2013-2017
Category 2013 2014 2015 2016 2017 CAGR* % 2013-17
China 4,208.8 4,108.2 4,349.9 4,581.5 4,777.3 3.2
United States 3,010.2 3,052.0 3,111.2 3,185.3 3,269.0 2.1
France 2,433.7 2,421.2 2,404.0 2,365.6 2,349.4 −0.9
Italy 2,271.5 2,197.9 2,261.9 2,291.7 2,317.1 0.5
Germany 2,044.6 2,035.4 2,029.4 2,017.0 2,012.0 −0.4
United Kingdom 1,368.4 1,356.8 1,354.8 1,355.7 1,357.0 −0.2
Russia 1,099.3 1,034.6 942.4 910.6 904.5 −4.8
Argentina 1,060.0 1,019.6 1,066.3 981.5 926.6 −3.3
Spain 937.8 941.8 953.6 975.9 995.1 1.5
Japan 908.4 899.1 892.6 868.1 865.2 −1.2
Canada (12) 506.4 525.7 546.7 563.3 586.1 3.7

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

China was the largest country in consuming 4.8 billion litres of wine in 2017, followed by the U.S. (3.2 billion litres) and France (2.3 billion litres). Canada was the twelfth largest country, consuming 586.1 million litres of wine in 2017 with a compound annual growth rate of 3.7% from 2013 to 2017.

Brand shares

Brand shares of beer, % volume breakdown, 2012-2016
Brand Company 2012 2013 2014 2015 2016 CAGR* % 2012-16
Bud Light Anheuser-Busch InBev NV 21.2 20.5 20.1 19.5 18.8 −3.0
Coors Light Molson Coors Brewing Co 9.2 9.1 8.6 8.4 8.3 −2.5
Budweiser Anheuser-Busch InBev NV 8.1 7.8 7.4 7.1 6.8 −4.3
Miller Lite Molson Coors Brewing Co 6.3 N/C
Busch Anheuser-Busch InBev NV 6.0 5.9 5.8 5.6 5.5 −2.2
Corona Extra Constellation Brands Inc 3.7 3.8 4.1 4.3 N/C
Natural Anheuser-Busch InBev NV 5.4 5.1 4.8 4.6 4.3 −5.5
Modelo Constellation Brands Inc 1.9 2.3 2.7 3.3 N/C
Michelob Ultra Anheuser-Busch InBev NV 1.8 1.9 2.1 2.4 3.0 13.6
Pabst Blue Ribbon Intermediate Holdings LLC 2.2 2.1 2.1 N/C
Others 48.3 44.1 42.9 43.5 37.3 −6.3
Total 100 100 100 100 100

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Note: Data available until 2016

N/C: Not Calculable

In 2016, among top ten brands of beer in volume sales, Anheuser-Busch InBev NV company occupied five brands: Bud Light (18.8%), Budweiser (6.8%), Busch (5.5%), Natural (4.3%) and Michelob Ultra (3.0%). Molson Coors Brewing Co had two brands: Coors Light (8.3%) and Miller Lite (6.3%).

Brand shares of spirits, % volume breakdown, 2012-2016
Brand Company 2012 2013 2014 2015 2016 CAGR* % 2012-16
Smirnoff Diageo Plc 4.9 4.7 4.5 4.4 4.3 −3.2
Bacardi Bacardi & Co Ltd 3.9 3.8 3.6 3.4 3.2 −4.8
Jack Daniel's Brown-Forman Corp 2.7 2.7 2.7 2.9 2.9 1.8
Captain Morgan Diageo Plc 3.1 3.0 2.8 2.7 2.7 −3.4
Crown Royal Diageo Plc 2.1 2.2 2.1 2.4 2.6 5.5
Jim Beam Suntory Holdings Ltd 2.0 2.0 2.1 N/C
Fireball Sazerac Co Inc 0.4 0.9 1.8 2.0 2.0 49.5
New Amsterdam E&J Gallo Winery Inc 1.0 1.4 1.7 1.9 2.0 18.9
Svedka Constellation Brands Inc 1.9 1.9 2.0 2.0 2.0 1.3
Absolut Pernod Ricard Groupe 2.4 2.2 2.0 2.0 1.9 −5.7
Others 77.6 77.2 74.8 74.3 74.3 −1.1
Total 100 100 100 100 100

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Note: Data available until 2016

N/C: Not Calculable

Diageo Plc continued to lead volume sales of spirits in 2016 even though it recorded declining sales of spirits over the period 2012−2016. Diageo Plc benefits from a stable of brands with considerable strength, including category-leading brands such as Smirnoff (vodka), Capitain Morgan,, Crown Royal (Canadian whisky), and Johnnie Walker (other blended Scotch whisky).

Private label spirits in the U.S. hold a very small share of category sales, but remain a concern to the major branded players. The most notable private label spirit retailer is Costco, whose private label line, Kirkland, offers vodka, whisky and other offerings. Despite their private label status, these spirits have received great reviews and are considered affordable premium products.

Brand shares of ready-to-drink, % volume breakdown, 2012-2016
Brand Company 2012 2013 2014 2015 2016 CAGR* % 2012-16
Mike's Hard Lemonade Mark Anthony Brands Ltd 21.9 19.5 20.9 22.3 23.5 1.8
Bud Light Anheuser-Busch InBev NV 8.2 22.1 25.7 20.2 17.8 21.4
Smirnoff Diageo Plc 16.2 13.4 12.8 13.5 13.1 −5.2
Twisted Tea Boston Beer Co Inc, The 7.8 7.8 8.6 10.2 11.0 9.0
Four Loko Phusion Projects LLC 6.5 5.5 5.1 5.0 5.4 −4.5
Seagram's Escapes Pernod Ricard Groupe 4.4 4.0 4.6 4.8 5.0 3.2
Sparks Molson Coors Brewing Co 2.0 N/C
José Cuervo Grupo Cuervo SA de CV 2.0 1.6 1.6 1.8 1.9 −1.3
Daily's Cocktail American Beverage Corp 2.7 2.3 1.5 1.5 1.3 −16.7
Seagram's Pernod Ricard Groupe 1.1 1.0 1.0 1.1 1.0 −2.4
Others 29.2 22.8 18.2 19.6 18.0 −11.4
Total 100 100 100 100 100

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Note: Data available until 2016

N/C: Not Calculable

Brand shares of wine, % volume breakdown, 2012-2016
Brand Company 2012 2013 2014 2015 2016 CAGR* % 2012-16
Franzia Wine Group Inc, The 6.9 7.2 7.1 6.4 6.3 −2.2
Barefoot Cellars E&J Gallo Winery Inc 4.4 4.8 5.2 5.5 5.6 6.2
Carlo Rossi E&J Gallo Winery Inc 3.7 3.5 3.4 3.3 3.1 −4.3
Sutter Home Trinchero Family Estates 3.2 3.1 3.0 2.9 2.9 −2.4
Woodbridge Constellation Brands Inc 2.6 2.7 2.8 2.8 2.9 2.8
Twin Valley E&J Gallo Winery Inc 2.8 2.7 2.7 2.6 2.6 −1.8
Yellow Tail Casella Wines Pty Ltd 2.6 2.6 2.5 2.4 2.3 −3.0
Peter Vella E&J Gallo Winery Inc 2.1 2.0 2.0 2.0 1.9 −2.5
Beringer Treasury Wine Estates Ltd 1.9 1.9 1.9 1.9 1.8 −1.3
Livingston Cellars E&J Gallo Winery Inc 1.7 1.6 1.6 1.5 1.5 −3.1
Others 68.1 67.9 67.8 68.7 69.1 0.4
Total 100 100 100 100 100

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Note: Data available until 2016

In 2016, among top ten brands of wine in volume sales, E&J Gallo Winery Inc occupied five brands: Barefoot Cellars (5.6%), Carlo Rossi (3.1%), Twin Valley (2.6%), Peter Vella (1.9%) and Livingston Cellars (1.5%).

Company market shares

Anheuser-Busch InBev NV has been the top company from 2012 to 2016 with a market share of 35.7% in 2016, followed by Molson Coors Brewing Co with a market share of 20.7% in 2016. Constellation Brands Inc, the number three top company, recorded the highest compound annual growth rate of 53.8% from 2012 to 2016, with a market share shooting up to 8.4% in 2016 from 1.5% in 2012, which partially contribute to the reason why other companies below top ten had a negative −13.2% compound annual growth rate from 2012 to 2016.

Top ten company market shares of alcoholic drinks –  % volume, 2012-2016
Company 2012 2013 2014 2015 2016 CAGR* % 2012-16
Anheuser-Busch InBev NV 39.0 38.3 37.4 36.4 35.7 −2.2
Molson Coors Brewing Co 10.9 10.8 10.3 10.0 20.7 17.4
Constellation Brands Inc 1.5 6.6 7.1 7.6 8.4 53.8
Heineken NV 3.3 3.3 3.3 3.5 3.4 0.7
E&J Gallo Winery Inc 2.4 2.5 2.6 2.6 2.7 3.0
Blue Ribbon Intermediate Holdings LLC 2.4 2.3 2.2 N/C
Diageo Plc 2.2 2.2 2.1 2.0 1.9 −3.6
Boston Beer Co Inc, The 1.2 1.5 1.7 1.8 1.7 9.1
Wine Group Inc, The 1.4 1.4 1.3 1.2 1.2 −3.8
Yuengling Brewery 1.0 1.0 1.0 1.0 1.0 0.0
Others 37.1 32.4 30.8 31.6 21.1 −13.2
Total 100 100 100 100 100

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Note: Data available until 2016

Distribution channels

Food/drink/tobacco specialists stores remained the largest retail channel for alcohol sales in retail value sales (40.6% in 2016) followed by small grocery retailers (22.3% in 2016). The wide range of product availability and knowledgeable staff found in specialist retailers are harmonious with modern consumer trends of more alcohol options coupled with demand for information about those products. Despite their strength, food/drink/tobacco specialists lost volume share of alcoholic drinks in 2017, while one-stop locations such as hypermarkets and supermarkets gained share alongside an increased focus on greater product representation.

Distribution channels historical retail value sales, % breakdown, 2012-2016
Channels 2012 2013 2014 2015 2016 CAGR* % 2012-16
Store-based retailing 98.0 98.0 97.7 97.7 97.3 −0.2
Grocery retailers 89.9 89.9 89.4 89.3 89.1 −0.2
Discounters 0.7 0.6 0.6 0.5 0.5 −8.1
Food/drink/tobacco specialists 42.1 42.9 41.6 41.1 40.6 −0.9
Hypermarkets 3.7 3.7 3.6 3.7 3.7 0.0
Small grocery retailers 22.1 21.7 22.4 22.6 22.3 0.2
Convenience stores 4.7 4.5 4.6 4.7 4.6 −0.5
Forecourt retailers 14.2 14.0 14.6 14.6 14.3 0.2
Independent small grocers 3.2 3.2 3.2 3.3 3.3 0.8
Supermarkets 18.5 18.2 18.2 18.3 18.6 0.1
Other grocery retailers 2.8 2.8 3.1 3.1 3.4 5.0
Non-grocery specialists 2.9 2.7 2.6 2.5 2.3 −5.6
Drugstores/parapharmacies 2.9 2.7 2.6 2.5 2.3 −5.6
Mixed retailers 5.3 5.3 5.7 5.9 5.8 2.3
Mass merchandisers 0.4 0.3 0.3 0.4 0.4 0.0
Warehouse clubs 4.9 5.0 5.4 5.5 5.5 2.9
Non-store retailing 2.0 2.0 2.3 2.3 2.7 7.8
Internet retailing 2.0 2.0 2.3 2.3 2.7 7.8
Total 100 100 100 100 100

Source: Euromonitor International 2018

*CAGR: compound annual growth rate

Note: Data available only until 2016

Product launch analysis

From January 2013 to December 2017, there were 7,706 launches of alcoholic beverages in the U.S. Most of these occurred in the beer category with 3,374 products launches, while 2,236 product launches were in the wine category, and 445 were in the vodka category.

Top 10 categories of alcoholic beverage product launches, 2013-2017
Category 2013 2014 2015 2016 2017 Total
Beer 1,002 836 579 436 521 3,374
Wine 582 449 379 404 422 2,236
Vodka 147 106 81 78 33 445
Whisky 93 102 101 47 49 392
Flavoured alcoholic beverages 102 98 58 59 65 382
Liqueur 86 50 36 35 6 213
Cider 51 45 34 42 39 211
Tequila 58 46 16 5 6 131
Dark rum 26 19 16 11 3 75
White rum 28 14 11 11 5 69
Other 63 38 33 24 20 178
Total 2,238 1,803 1,344 1,152 1,169 7,706
Source: Mintel 2018

Among 7,706 alcoholic product launches from 2013 to 2017, 3,104 were new varieties, 2,933 were new products, 1,514 had a new packaging, and 144 were relaunches. 2,238 products were launched in 2013, the most launches in a single year for the past five years.

Alcoholic product launch type, 2013-2017
Launch type 2013 2014 2015 2016 2017 Total
New variety/range Extension 828 786 540 475 475 3,104
New product 1,017 673 506 362 375 2,933
New packaging 341 312 277 296 288 1,514
Relaunch 45 30 21 19 29 144
New formulation 7 2 0 0 2 11
Total 2,238 1,803 1,344 1,152 1,169 7,706
Source: Mintel 2018

Conclusion

The average unit price of alcoholic drinks continued to rise in current value terms in 2017, however, Americans of legal drinking age continued to consume less on a per capita basis due to the trend towards more-sensible drinking.

Retail sales of alcoholic drinks in the U.S. reached US$231.4 billion in 2017 and grew at a 3.0% compound annual growth rate from 2012 to 2017 and is forecast to reach US$275.6 billion in 2022.  Canada needs to seize this opportunity to export more alcoholic drinks, in particular icewine, in addition to spirits and beer, to the U.S.

For more information

International Trade Commissioners can provide Canadian industry with on-the-ground expertise regarding market potential, current conditions and local business contacts, and are an excellent point of contact for export advice.

For additional intelligence on this and other markets, the complete library of Global Analysis reports can be found on the International agri-food market intelligence page, arranged by region.

Resources

Sector Trend Analysis – Beer, spirits and wine in the United States
Global Analysis Report

Prepared by: Hongli Wang, Market Analyst

© Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food (2018).

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