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WHITE SPIRITS - US - DECEMBER 2017

Published By :

Mintel

Published Date : Dec 2017

Category :

Alcoholic Beverages

No. of Pages : N/A

Distilled spirits (white and dark) are expected to flourish, growing 11% through 2022 with white spirits making up majority of volume sold. Sales of white spirits will maintain forward momentum as interest in craft, premium spirits, and cocktails grows. While vodkas versatile flavor profile has kept it as the leading segment of the category, success in newer unflavored varieties has brought the inherent quality of the spirit back to the forefront. Tequila is the fastest growing segment, driven by premium and super-premium offerings, while rum struggles to stabilize and gin lacks mainstream relevance.

Table of contents
OVERVIEW
What you need to know
Definition
EXECUTIVE SUMMARY
Overview
White spirits enjoy strong and steady volume growth
Figure 1: Total US volume sales and fan chart forecast of white spirits, 2012-22
The issues
Spirits, cocktails, mixed drinks come second to beer and wine
Figure 2: Alcohol associations, August 2017
Dark spirits rise in popularity
Figure 3: US volume sales of dark spirits, by segment 2012-22
Gin lacks associations needed to gain appeal
Figure 4: Spirit associations, August 2017
The opportunities
Consumers cutting back on alcohol, offer a solution
Figure 5: Reasons for drinking less white spirits, August 2017
Younger consumers drink for fun, drive segment growth
Figure 6: Motivations for drinking alcohol, by gender and age, August 2017
Gin consumers see themselves knowledgeable, older Millennials a strong target
Figure 7: Attitudes toward spirits, by white spirit consumption, August 2017
What it means
THE MARKET WHAT YOU NEED TO KNOW
White spirits aid in driving distilled spirits market
Vodka unwaveringly dominates white spirits, tequila posts largest gains
Advertising opportunities and celeb associations grow awareness, beer and wine still limit total growth
Total US population ages, drinks less
MARKET SIZE AND FORECAST
Distilled spirits dollar sales continue to soar
Figure 8: Total US sales and fan chart forecast of distilled spirits, at current prices, 2012-22
Figure 9: Total US sales and forecast of distilled spirits, at current prices, 2012-22
Historic and projected volume sales performance of white spirits
Figure 10: Total US volume sales and fan chart forecast of white spirits, 2012-22
Figure 11: US volume sales of white spirits, 2012-22
MARKET BREAKDOWN
Vodka continues to dominate category, tequila shows growth
Figure 12: US volume sales of white spirits, by segment, 2017
Figure 13: Sales of white spirits, by segment, 2012-2022
At-home consumption pivotal in the spirits category
Figure 14: US volume sales of dark and white distilled spirits, percentage change by channel, 2012-16
Figure 15: Where consumers drink liquor, trended 2012-17
MARKET PERSPECTIVE
Popularity rising for all things dark spirits
Figure 16: US volume sales of dark spirits, by segment 2012-22
Liquor advertisements allowed in NFL challenge beers stronghold
Cocktails and spirits come second to beer and wine
Figure 17: Alcohol associations, August 2017
MARKET FACTORS
Total alcohol consumption goes down, spending goes up
Figure 18: Total on-premise market volume consumption per capita, total alcohol, 2011-20
Median age rises, driving change in behavior
Figure 19: Median age of the population, 1940-2050
KEY PLAYERS WHAT YOU NEED TO KNOW
Vodka and tequila brands showed strongest movement toward premium trend
Premium spirits drive brand growth, unflavored vodkas gain attention
Domestic gins drag segment down
Craft spirits to continue to spark category interest
COMPANY AND BRAND SALES OF WHITE SPIRITS
Domestic vodka brands provide quality-driven growth
Figure 20: Vodka consumed in the past 30 days, by brand, trended 2012-17
Tequila brands see growth across the board
Figure 21: Tequila consumed in the past 30 days, by brand, trended 2012-17
Bacardi leads the segment, though rum brands may be missing out on key trends
Figure 22: White/light rum consumed in the past 30 days, by brand, trended 2012-17
Imported gin brands a bright spot in a falling segment
Figure 23: Gin consumed in the past 30 days, by brand, trended 2012-17
WHATS WORKING?
Premium spirits
Figure 24: Percent US white spirit entries (gin, white rum, tequila, vodka) with premium positioning claims, Jan 2009 Nov 2017
High-quality, unflavored vodka
Figure 25: US vodka entries, percent of entries by flavor, Jan 2012-Nov 2017
Celebrity endorsements break through the clutter
Figure 26: Chrissy Teigen Blue World | Only the Best for Everyone | Smirnoff, May 2017
WHATS STRUGGLING?
Domestic gin struggles to find footing
WHATS NEXT?
Farm-to-glass spirits
THE CONSUMER WHAT YOU NEED TO KNOW
Unflavored vodka a favorite among consumers, women prefer flavors
As consumption stalls, category growth may be limited
Relaxation drives alcohol consumption, secondary motivations vary
Cocktails encourage spirit exploration, though limited at home
Reason for drinking determines spirit decisions
Strong spring and summer sparks in consumption benefit white spirits
Lacking associations, gin loses to the rest of the category
Regardless of value, liquor stores drive spirit purchases
WHITE SPIRITS CONSUMPTION
Unflavored vodka carries highest reach
Figure 27: White spirit consumption, August 2017
Flavored vodkas appeal to women
Figure 28: White spirit consumption, by gender, August 2017
Gin, white/light rums appeal to an older Millennial palate
Figure 29: White spirit consumption, by Millennial status, August 2017
Multicultural consumers an especially strong target
Figure 30: White spirit consumption, by race and Hispanic origin, August 2017
SHIFTS IN WHITE SPIRIT CONSUMPTION
Nine in 10 consumers stalling or decreasing consumption
Figure 31: Shifts in white spirit consumption, August 2017
35-44-year-olds show opportunity for growth
Figure 32: Shifts in white spirit consumption, by age, August 2017
Parents more likely to have increased consumption
Figure 33: Shifts in white spirit consumption, by gender and parent status, August 2017
Reasons for drinking more
Figure 34: Reasons for drinking more white spirits, August 2017
Reasons for drinking less
Figure 35: Reasons for drinking less white spirits, August 2017
MOTIVATIONS FOR DRINKING ALCOHOL
Relaxation is the main reason consumers imbibe
Figure 36: Motivations for drinking alcohol, August 2017
Motivations fluctuate per white spirit consumed
Figure 37: Motivations for drinking alcohol, by dark and white spirit consumption, August 2017
With age comes an appreciation for taste and indulgence
Figure 38: Motivations for drinking alcohol, by gender and age, August 2017
Parents turn to alcohol for fun
Figure 39: Motivations for drinking alcohol, by gender and parent status, August 2017
ATTITUDES TOWARD SPIRITS
Cocktails a good way to introduce new spirits
Figure 40: Attitudes toward spirits - White spirits rebase, August 2017
Gin consumers see themselves as more knowledgeable, effects their approach to spirits
Figure 41: Attitudes toward spirits part 1, by white spirit consumption, August 2017
White rum drinkers explore cocktail creation
Figure 42: Attitudes toward spirits part 2, by white spirit consumption, August 2017
Younger drinkers more adventurous in at-home cocktail creation
Figure 43: Attitudes toward spirits - White spirits rebase, by Millennial status, August 2017
DECIDING WHICH SPIRIT TO DRINK
Why they drink determines what spirit they drink
Figure 44: Spirit decision making - White spirits rebase, August 2017
Women may be more swayed by what they have on hand
Figure 45: Spirit decision making - White spirits rebase, any rank, by gender, August 2017
Word of mouth goes a long way for Millennials
Figure 46: Spirit decision making - White spirits rebase, any rank, by Millennial status, August 2017
and Hispanics
Figure 47: Spirit decision making - White spirits rebase, any rank, by Hispanic origin, August 2017
SEASONALITY OF SPIRITS
White spirit consumption peaks in summer months
Figure 48: Seasonality of spirits, August 2017
Tequila shows the strongest seasonal spike
Figure 49: Seasonality of spirits, by white spirit type, August 2017
WHITE SPIRIT ASSOCIATIONS
Gin lacks associations, lags behind vodka and tequila
Figure 50: Spirit associations, August 2017
Young men keen on high-quality tequila
Figure 51: Spirit associations tequila, by gender and age, August 2017
Vodka is Black consumers go-to for fun and good taste
Figure 52: Spirit associations - vodka, by race and Hispanic origin, August 2017
Millennials have higher associations with gin, though some conflicting
Figure 53: Spirit associations Gin, by Millennial status, August 2017
White/light rums appeal based on affordability more than quality for young consumers
Figure 54: Spirit associations White/light rum, by age, August 2017
PURCHASE LOCATION OF SPIRITS
Liquor stores drive majority of sales regardless of value
Figure 55: Purchase location, August 2017
Figure 56: Purchase location Do not purchase, August 2017
Consumers not restricted to ABC stores broaden their search, especially in western US
Figure 57: Purchase location, by region, August 2017
Older Millennials shop for value spirits wherever convenient
Figure 58: Purchase location, value spirits, by older and younger Millennials, August 2017
Hispanics open to purchasing in more channels
Figure 59: Purchase location, by Hispanic origin, August 2017
APPENDIX DATA SOURCES AND ABBREVIATIONS
Data sources
Sales data
Fan chart forecast
Consumer survey data
Abbreviations and terms
Abbreviations
Terms
APPENDIX THE MARKET
Figure 60: Total US sales and forecast of distilled spirits, at inflation-adjusted prices, 2012-22
Figure 61: US volume sales and forecast of white spirits, by segment, 2012-22
Figure 62: US volume sales of white spirits, by segment, 2015 and 2017
Figure 63: Total US volume sales and fan chart forecast of vodka, 2012-22
Figure 64: Total US volume sales and fan chart forecast of rum, 2012-22
Figure 65: Total US volume sales and fan chart forecast of gin, 2012-22
Figure 66: Total US volume sales and fan chart forecast of tequila, 2012-22

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