North America Spirits Market Size, Share & Trends Analysis Report By Product, By Caps & Closures, By Caps & Closures Material, By Distribution Channel, By Country, And Segment Forecasts, 2024 - 2030

North America Spirits Market Size & Trends

The North America spirits market size was estimated at USD 216.62 billion in 2023 and is expected to grow at a CAGR of 6.3% from 2024 to 2030. The growing demand for premium products has been driving the market's growth across the region. Consumers have been switching to premium spirit brands with amplified brand experience. Many spirits with unique flavors and distinct tastes were launched in North America even during the COVID-19 pandemic, and thus, the market is expected to continue to grow in the coming years. For instance, Onda, a New York-based company, launched a canned spirit-based cocktail with Blanco Tequila and real fruit juice, which is gluten-free and contains no sugar and no carbs.

Moreover, changing consumer preferences, improved standards of living, increasing disposable income levels, and changing lifestyles are stimulating the demand. Furthermore, the growing popularity of the cocktail culture is expected to boost the demand for premium products. Over the past few years, the growth of the high-end alcohol segment has been outpacing the growth of the overall segment, hence driving product consumption in North America.

Consumer trends and preferences in the alcohol industry have been changing gradually over the years. Due to rising purchasing power, millennials have been shifting toward premium drinks. Tequila has been one of the fastest‐growing categories in North America for several years, and sales of tequila brands such as Patrón, Don Julio, Casamigos Tequila, and Epsolòn Tequila have grown significantly in the region in the last few years.

In 2022, According to the Distilled Spirits Council, the U.S. spirits market saw a preference for high-end tequila, mezcal, and American whiskey. More than 60% of the total revenue in the spirits market came from the sales of high-end and super-premium spirits, which were primarily led by these two categories. The ready-to-drink (RTD) spirits category continued to gain popularity, representing 13% of the total RTD market volume in 2022. The top five spirits categories by revenue were Vodka, Tequila/Mezcal, American Whiskey, Brandy and Cognac, and Cordials, with Tequila/Mezcal and American Whiskey showing the most significant growth.

Sales of Irish whiskey in the U.S. increased considerably in 2022, with more than 6.1 billion 9-litre cases sold, generating USD 1.4 billion for distillers. This growth significantly contributed to the record-breaking growth of the U.S. spirits market. The category also benefited from a boost in tourism numbers, attracting 677,000 visitors to whiskey tourism sites in Ireland.

Furthermore, the rising trend of cocktails with exotic flavors and low alcohol content has been widening the scope for products in the region. Margaritas, martinis, old-fashioned mimosas, and Moscow mules are among the trending cocktails in the U.S. Botanicals flavors such as basil, lavender, cilantro, sorrel, and orange peel have been gaining traction over the years, along with citrus and exotic fruit flavors. Companies are introducing new products in the spirits market by incorporating botanical ingredients. This trend reflects a growing consumer interest in unique and natural flavors in alcoholic beverages.

In September 2023, The Holistic Spirits Company launched Origen, a Harmony Gin and Specialty Vodka, both distinguished by their use of all-natural and botanical ingredients. Employing certified green distilling methods that merge science, nature, and artisanal craftsmanship, these innovative spirits have earned recognition as they showcase a special blend of elderberries, green tea leaves, artichoke leaves, and indigenous American South muscadine grapes. Harmony Gin goes a step further, incorporating botanicals like coriander seed and juniper berries. Both beverages are sugar-free, devoid of artificial flavors or colors, and GMO-free.

Industry Dynamics

The degree of innovation in the North America spirits market is notably high, driven by evolving consumer preferences, a focus on premiumization, and the integration of advanced technologies. Distilleries are increasingly experimenting with unique flavors, sustainable production methods, and artisanal approaches to stand out in a crowded market. In addition, the rise of craft distilleries and the popularity of ready-to-drink cocktails are reshaping the landscape. Digital marketing, e-commerce, and personalized consumer experiences further contribute to the dynamic nature of innovation in this sector.

The impact of regulations significantly impacts the North American market by enforcing product safety and quality standards. Stringent laws govern the labeling, advertising, and sales of alcoholic beverages, ensuring consumer safety and fair-trade practices. Regulations also dictate the taxation and licensing requirements, which can affect pricing and market entry for new players. Compliance with these regulations can be costly and complex, posing challenges for smaller craft distilleries. However, regulatory frameworks also help maintain market stability and protect public health, contributing to the overall integrity of the industry.

In the North America market, product substitutes include a wide range of alcoholic and non-alcoholic beverages that compete for consumer preference. Beer and wine are the primary alcoholic substitutes, often chosen for their lower alcohol content and varied flavor profiles. Non-alcoholic alternatives such as mocktails, flavored seltzers, and alcohol-free spirits are gaining popularity, driven by health-conscious consumers and the growing trend of mindful drinking. In addition, other beverages like energy drinks, soft drinks, and specialty teas can serve as substitutes, offering varied taste experiences and catering to different social occasions and lifestyle choices.

The level of mergers and acquisitions (M&A) activities in the North America spirits industry is currently moderate. As technology matures and market demand grows, companies are increasingly exploring strategic partnerships, acquisitions, and collaborations to enhance their capabilities, expand their product offerings, and gain a competitive edge.

Product Insights

Whiskey accounted for a market share of 27.69% in 2023. The whiskey industry is experiencing a significant trend toward premiumization, with consumers increasingly inclined to spend more on high-quality, premium bottles. This shift reflects a broader trend in the beverage sector, where affordable luxury items are gaining popularity.

According to the Distilled Spirits Council of the U.S., spirits supplier sales in the U.S. were up 5.1% in 2022. Blended whiskey experienced a growth of 6.8%, or USD 60 million, to USD 940 million. The premiumization trend, which was strong in 2021, slowed down in 2022 but remained significant. High-end Tequila and American Whiskey were the main drivers for the growth of the spirits sector in 2022.

Gin is expected to grow at a CAGR of 7.8% from 2024 to 2030. Gin consumption in North America is rising due to a growing appreciation for its versatility in cocktails, the increasing popularity of craft distilleries, and a renewed interest in classic and innovative gin-based drinks. The diverse botanical profiles and unique flavors offered by artisanal and small-batch gins attract consumers seeking new and sophisticated drinking experiences.

According to the statistics released by the Distilled Spirits Council of the U.S. (DISCUS), in June 2021, the premium, high-end premium, and super-premium categories increased in gross revenue by 6.3%, 7.7%, and 8.7%, respectively. Such indicators are likely to boost the overall demand for gins during the forecast period.

Distribution Channel Insights

Sales through liquor stores accounted for a share of 49.86% in 2023. Consumers in North America prefer buying spirits from liquor stores due to the wide selection, expert recommendations, and the ability to compare prices and products easily. Liquor stores often offer a diverse range of brands and types of spirits, including exclusive and premium options not available in other retail outlets. In addition, knowledgeable staff can provide guidance on new or niche products, enhancing the shopping experience. The convenience of one-stop shopping and regulatory restrictions on alcohol sales in some regions also drive this preference.

Sales through online channels are anticipated to grow at a CAGR of 10.0% from 2024 to 2030. 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. Major spirits manufacturers such as Diageo plc emphasize online distribution channels to reach more consumers. Moreover, third-party sellers such as Drizly and ReserveBar sell products offered by major manufacturers as well as local producers. Such sellers establish a strong supply chain that expands all over the world.

Caps & Closures Insights

Screw top accounted for a market share of 85.24% in packaging caps & closure in 2023. The screw-top segment has been growing at a significant pace 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 engineered and created to be cost-efficient, easy to use, provide an effective seal, and adhere to product, package, and environmental laws and administrations. Spirit bottles are mostly made with screw tops, such as the Johnnie Walker brand. Some of the major players in the screw-top market are Federal Mfg. Co. and E-PAK Machinery, Inc.

Bar top/cork is expected to grow at a CAGR of 7.5% from 2024 to 2030. Cork stoppers are becoming increasingly popular in the spirits industry, with significant demand from white spirits. The trend of premiumization in the spirits and craft beer categories has fueled the growth of the cork stoppers segment. Cork offers a superior seal for spirit bottles and is often viewed as a sign of class. Various spirit brands are embracing the trend of sealing their bottles with cork stoppers. For instance, the tequila brands Patrón and Don Julio, vodka producers Chase and Belvedere, and gin brands Hendrick’s, Elephant, and Caorunn, have used cork closure in their bottles.

Caps & Closures Material Insights

Plastic caps & closures accounted for a market share of 49.81% in 2023. Plastic materials such as high-density polyethylene, low-density polyethylene, polypropylene, and polyethylene terephthalate are used for manufacturing caps and closures. The abundant availability of these raw materials translates to the low cost of production, thereby making plastic caps and closures a viable choice for packaging. Moreover, a wide range of plastic caps in different shapes and sizes can be easily molded economically by using compression molding and injection molding techniques. Therefore, the spirits industry relies heavily on plastic caps and closures as they provide a cost-effective sealing solution.

Metal cap & closures are expected to grow at a CAGR of 7.6% from 2024 to 2030. The significant growth in the spirits industry is contributing to the rising demand for effective packaging solutions for spirits, such as metal caps and closures. Metal caps and closures are available in various diameters and closure types. They offer stability and rigidity while conveying a superior product image. Moreover, these metal caps and closures 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 segment growth.

Country Insights

U.S. Spirits Market Trends

The spirits market in the U.S. held a market share of 79.36% in 2023. The market is growing due to increased consumer demand for premium and craft products, innovative flavor profiles, and the resurgence of cocktail culture. Millennials and younger consumers are driving this trend, seeking high-quality, authentic, and diverse drinking experiences. In addition, effective marketing, expanding e-commerce channels, and the popularity of ready-to-drink cocktails are contributing to the market's expansion. Economic factors, such as rising disposable incomes and changing social habits, also play a significant role in boosting spirits consumption.

New product developments, mergers & acquisitions, and expansions are some of the most preferred strategies for players in the spirits industry in the U.S. For instance, in August 2022, English gin distillery Three Wrens introduced a rum to its lineup of spirits. The Three Wrens Bison Grass Rum is made with five botanicals, including raw cacao, and infused with bison grass, tonka beans, vanilla pods, and cinnamon. The owner of Three Wrens Distillery, Nick Wadeson, expressed excitement about expanding into flavored rum, which has been growing in popularity.

Canada Spirits Market Trends

The spirits market in Canada is expected to grow at a CAGR of 6.5% from 2024 to 2030. It comprises numerous alcoholic products, including vodka, gin, tequila, rum, whiskey, brandy, and flavored spirits. Consumers in the country prefer premium brands and are willing to pay a higher price for high-quality brands. Innovative social media campaigns focusing on spirit brands have been fueling market growth.

In January 2023, The House of Suntory launched its first-ever world-blended whisky called Suntory World Whisky 'Ao'. This premium whisky is blended using whisky from five renowned whisky regions: Scotland, Ireland, Canada, Japan, and the U.S. It captures the distinct flavors of each region, with notes of vanilla, tropical fruit, and cinnamon. The whisky is named 'Ao,' meaning blue, after the oceans that connect these regions.

Mexico Spirits Market Trends

The spirits market in Mexico is expected to grow at a CAGR of 7.0% from 2024 to 2030. The growing popularity of high-end drinks among the millennial population has been fueling market growth across the country. The sales of cocktails such as margaritas and martinis have gained remarkable traction in Mexico. As a result, the growing popularity of the cocktail culture in the country is expected to promote the market for various spirits.

Key North America Spirits Company Insights

The market includes both international and domestic participants. Brand market share analysis indicates that key market players are focusing on strategies such as new product launches, partnerships, mergers & acquisitions, global expansion, and others. Some of the largest spirits companies, including Diageo Plc, Suntory Holdings Limited, and Bacardi Limited, have entered the market. Along with that, to improve their efficiency and by using the international distribution channel, the companies have been ruling the industry.

Recent Developments

• In March 2024, Cobblestone Brands launched a new rum brand called Star & Key Rum, a single-estate rum from Mauritius. The rum is made with fresh cane juice to capture the island's unique terroir. The rum is tropically aged on the estate, which accelerates the maturation process and intensifies the flavor drawn from the oak casks.

• In May 2024, Empress 1908, the fastest-growing and top-ranked ultra-premium gin in the U.S., launched a new expression called Empress 1908 Cucumber Lemon Gin. This premium, handcrafted gin is produced in small batches by Victoria Distillers, one of Canada's oldest artisan distilleries. The new Empress 1908 Cucumber Lemon Gin is crafted with eight unique botanicals, including juniper berries, lemon, jasmine, star anise, cucumber, and fresh lemon zest.

• In October 2023, DIAGEO announced its "Spirited Xchange" Special Releases Scotch Whisky Collection, featuring eight rare and collectible single malt expressions. The collection celebrates the journey of Scotch whisky and its cultural exchange with countries and cultures around the world.

• In September 2023, Bacardi Limited announced the acquisition of Mexico-based ILEGAL Mezcal, a super-premium artisanal mezcal provider. The initiative was aimed at accelerating brand growth within the fast-growing super-premium mezcal category.

North America Spirits Market Report Scope

North America Spirits Market Report Segmentation

This report forecasts revenue growth at the regional and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the North America spirits market report based on product, caps & closures, caps & closures material, distribution channel, and country.

• Product Outlook (Revenue, USD Billion, 2018 - 2030)

  • Whiskey

  • Vodka

  • Gin

  • Rum

  • Brandy

  • Others

• Caps & Closures Outlook (Revenue, USD Billion, 2018 - 2030)

  • Screw-top

  • Bar-top/Cork

  • Others

• Caps & Closures Material Outlook (Revenue, USD Billion, 2018 - 2030)

  • Metal

  • Plastic

  • Others

• Distribution Channel Outlook (Revenue, USD Billion, 2018 - 2030)

  • On-Trade

  • Liquid Stores

  • Online

  • Others

• Regional Outlook (Revenue, USD Billion, 2018 - 2030)

  • North America

    • U.S.

    • Canada

    • Mexico