Washington. The distilled spirits sector achieved strong growth in 2021 driven by the gradual reopening of restaurants and consumers trading up to super-premium spirits for at-home occasions, according to the Distilled Spirits Council of the United States (DISCUS).
DISCUS president and CEO Chris Swonger reported that supplier sales in the United States were up 12% in 2021 to a total of $35.8bn, while volumes rose 9.3% to 291.1m nine-litre cases.
In 2021, spirits gained market share of the total U.S. beverage alcohol market with sales rising 1.7 share points to 41.3%. This represents the 12th straight year of market share gains for spirits overall.
“Last year, enthusiasm for spirits continued as consumers spent more to elevate their cocktail experiences with super-premium brands,” said Swonger. “Consumers savouring spirits at home and trading up to higher-end brands, combined with the gradual reopening of bars and restaurants, resulting in record sales for the spirits sector. We’re also seeing strong growth for spirits-based ready-to-drink (RTD) products, and that’s adding to our sector’s gains as well.”
Swonger noted that the premiumization trend, along with innovative COVID-relief measures such as cocktails-to-go, delivery and e-commerce, have helped to boost restaurants, bars and small distilleries as they continue to manage through the uncertainty and volatility created by the lingering pandemic.
Consumers’ Preference for Higher-end Spirits Accelerated in 2021
In presenting an overview of 2021 spirits sales trends, Christine LoCascio, DISCUS chief of public policy, reported that the premiumization trend accelerated in 2021.
“Nearly 82% of the spirits sector’s total revenue increase was from the sale of high-end and super-premium spirits brands,” said LoCascio. “Purchasing luxury spirits to create craft cocktails was a simple pleasure for spirits consumers who hunkered down at home and curtailed spending on vacations and dining out for the second year in a row.”
LoCascio noted that tequila was a key driver of growth accounting for nearly one-third of the total increase in spirits revenue. “From sipping fine tequilas, to enjoying classic cocktails like the margarita and paloma, consumers’ tastes for super-premium tequila took off in 2021,” she said.
2021 Spirits Category Trends:
The top 5 spirits categories by revenue:
- Vodka sales up 4.9% or $341m to $7.3bn
- Tequila/Mezcal up 30.1% or $1.2bn to $5.2bn
- American Whiskey up 6.7% or $288m to $4.6bn
- Brandy & Cognac up 13.1% or $403m to $3.5bn
- Cordials up 15.2% or $376m to $2.9bn
Top five fastest-growing spirits categories by revenue:
- Pre-mixed cocktails including spirits-based RTDs up 42.3% or $489m to $1.6bn
- Tequila/Mezcal up 30.1% or $1.2bn to $5.2bn
- Irish Whiskey up 16.3% or $185m to $1.3bn
- Cordials up 15.2% or $376m to $2.9bn
- Single Malt Scotch up 14.4% or $130m to $1bn
