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Impact Data Bank: Pre-mixed Cocktails to Drive 29th Growth in U.S. Spirits Category

September 30, 2024

While inventory issues and inflation have hampered the spirits market over the past two years, strong momentum in the ready-to-drink and ready-to-serve meals sectors continues to drive industry growth, according to the 2024 release of the report. The US Spirits Market: Shanken Impact Data Bank Overview and Forecast. Total spirits volume is expected to top 300 million cases for the first time this year, marking the industry’s 29th consecutive year of growth.

Although Tequila’s sales momentum has moderated recently, agave-based spirits are expected to surpass vodka for the first time in history to become the market’s largest category by dollar value as early as next year, according to a 280-page Impact Databank report. After supply chain issues disrupted shipments during the pandemic, sales of the 100% blue agave tequila brand surged again last year, capturing nearly three-quarters of the U.S. tequila market

The biggest catalyst for the industry’s development continues to be RTD products based on spirits – last year, packaged cocktails became the second largest spirits segment in terms of volume, just behind vodka itself. In 2023, High Noon hard seltzer rose to the top spot among all spirits brands for the first time, and the Gallo brand is expected to outsell second-ranked Tito’s vodka by two to one in volume by the end of the year.

The super premium sector also remains resilient. Last year, prices for tequila brands priced at $25 and up increased by more than 6% in volume terms, while prices for Bourbon and other straight American whiskeys priced at $25 and up saw a solid 3.5% increase, according to Impact Databank .

Three $40-plus tequila brands – Don Julio, Patrón and Casamigos – rank among the top six overall spirits by retail value in the U.S., each selling for more than $1.5 billion. Don Julio, in particular, saw impressive growth in NielsenIQ channels, up 47% in the year-to-date period ending September 7, driven largely by the Reposado expression.

For more information regarding US Spirits Market: Impact Databank Overview and Forecast, 2024 Editionand Shanken’s other exclusive reports and publications can be found at Impactdatabank.com.—Juan Banaag

Degree	Mark	Business	Origin/type	2019	2024P	Growth Indicator¹
USA – 10 best spirits priced at least $25 per 750 ml. (millions of 9 liter cases)
1	Jameson	Pernod Ricardo	Irish whiskey	3.72	3.85	0.6%
2	Royal Crown²	Diageo	Canadian whiskey	4/10	3.50	-3.1%
3	Hennessy	Moët Hennessy	Cognac	4.24	3/05	-6.3%
4	Greylag goose	Bacardi	Imported vodka	2.23	2.70	3.9%
5	Don Julio	Diageo	Tequila	1/02	2.65	21.0%
6	Patron	Bacardi	Tequila	2/13	2.50	3.3%
7	Casamigos	Diageo	Tequila	0.55	2.35	33.8%
8	The Maker’s Mark	Suntory Global Spirits	bourbon	1.79	2.20	4.2%
9	1800	Proximo ghosts	Tequila	1/17	2.15	13.0%
10	Johnnie Walker	Diageo	Scotch whisky	1.86	1.90	0.4%
Top 10 overall³				22.80	26.84	3.3%
1 Average annual compound growth rate. 2 Excludes flavors. 3 Adding columns may not match due to rounding. Source: IMPACT DATA BANK © 2024

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