North America Spirits Market Size, Prospective Growth and Trends Report 2028

North America Spirits Industry Overview

The North America spirits market is expected to reach USD 278.5 billion by 2028, registering a CAGR of 7.7% over the forecast period, according to a new report by Grand View Research, Inc. The market has several growth opportunities due to the rising consumer demand for premium and low alcohol content drinks. Moreover, innovation in Ready-to-Drink (RTD) products with an infusion of botanical and organic ingredients will provide new growth opportunities in the coming years.

U.S. spirits market size, by product, 2018 - 2028 (USD Billion)

North America Spirits Market Segmentation

Grand View Research has segmented the North America spirits market on the basis of product, caps & closure, caps & closure material, distribution channel, and region:

Based on the Product Insights, the market is segmented into Whiskey, Vodka, Gin, Rum, Brandy, and Others.

  • The whiskey product segment held the largest market share of more than 27% in 2020 and is expected to maintain dominance over the forecast period. Premiumization has become a growing trend in the alcohol industry. Most of the categories in the industry are going through substantial premiumization. Whiskey, in particular, has been gaining traction among consumers over the years. 
  • However, the gin product segment is projected to register the fastest CAGR during the forecast period. The demand for distilled gin manufactured in the U.S. is expected to grow in the coming years as consumer interest is shifting toward exotic, handcrafted drinks.

Based on the Caps & Closure Insights, the market is segmented into Screw-top, Bar-top/Cork and Others.

  • The screw-top segments accounted for the largest revenue share of more than 85% in 2020 due to various benefits associated with this format, primarily the ease of sealing spirits for later consumption. Screw-top caps can be either endless threads or lugs, generally with a metal skirt down the neck to resemble the conventional wine capsule. These caps are cost-efficient, easy to use, provide an effective seal, and adhere to product, package, & environmental laws & administrations.
  • The others segment is expected to register the fastest growth during forecast years. Other caps & closures include non-refillable closures. Non-refillable closures are used by distilleries for the packaging of spirits, such as whisky, vodka, rum, brandy, and gin. In addition, the practice of counterfeiting and refilling spirit bottles represents a serious risk to the well-being of consumers. To avoid such risks, manufacturers are coming up with a wide range of non-refillable closures for spirits, which, in turn, is expected to drive the segment growth.

Based on the Caps & Closure Material Insights, the market is segmented into Metal, Plastic and Others.

  • The plastic material segment held the largest market share of more than 50% in 2020 and is expected to maintain dominance over the forecast period due to the abundant availability of these raw materials. The spirits industry relies heavily on plastic caps and closures as they provide a cost-effective sealing solution. Thus, the growing demand for plastic packaging solutions is the key factor fueling the segment growth.
  • On the other hand, the metal segment is projected to register the fastest CAGR during the forecast period. The growth is credited to the rising demand for effective packaging solutions for spirits, such as metal caps and closures. These packaging solutions come with a plastic liner so that the content and the closure are never in contact with each other. Furthermore, technological advancements in the metal caps and closures market have helped in the aging of spirits, which in turn, drives the segment growth.

Based on the Distribution Channel Insights, the market is segmented into On-Trade, Liquid Stores, Online, and Others.

  • The liquor stores segment held the largest market share of over 50% in 2020 and is expected to maintain dominance over the forecast period. Liquor stores are a prominent distribution channel for selling these drinks. Small retailers always look for opportunities to establish and maintain an effective retail chain due to significant changes in consumers’ purchase behavior and patterns, especially for premium and innovative products. Earlier, key players in the North America market offered their range of products through exclusive stores that were usually situated at prime locations in various cities.
  • However, the online segment is projected to register the fastest CAGR during the forecast period. The hassle-free shopping experience offered by various online platforms is expected to drive the growth of the online segment. Easy payment methods that fit into the regulatory standards of different countries have made online transactions a lot easier. Moreover, due to the outbreak of COVID-19, consumers have started to purchase products through online channels to avoid physical contact, which is expected to fuel product sales through online distribution channels.

North America Spirits Regional Outlook

  • U.S.
  • Mexico
  • Canada

Key Companies Profile & Market Share Insights

The market has a large number of regional and several international players.

Some of the prominent players operating in the North America spirits market include,

  • Suntory Holdings Ltd.
  • Pernod Ricard
  • Constellation Brands
  • Rémy Cointreau
  • Brown-Forman
  • Asahi Group Holdings, Ltd.
  • Bacardi Limited
  • Campari Group
  • William Grant & Sons

Order a free sample PDF of the North America Spirits Market Intelligence Study, published by Grand View Research.

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