Press Release

A USD 415 Billion the US Alcoholic Drinks Market to Accelerate at a CAGR of Around 2.3% During 2024-30

The US Alcoholic Drinks Market size is valued at around USD 415 billion in 2024 and is anticipated to grow at a CAGR of around 2.3% during 2024-2030, cites MarkNtel Advisors in a recent research report. The growth of craft alcoholic drinks in the US is propelling the consumption of alcohol in the US Alcoholic Drinks Market. Craft beer manufacturers attract their consumers especially under the age of 40, by offering unique flavors and high-quality products. In 2023, craft beer’s market share grew from 9% to 15% because of their innovative marketing and advertising strategies. The growth in the market is also pushed by the expansion of product lines to capture a larger share of the market of national and regional breweries.

The tax system controlling alcoholic drink products is highly complex since taxes can be levied on them by federal, state, and local governments. Furthermore, the US government wants to recover as much tax revenue from the sale of these alcoholic drinks as possible, even though these things are not requirements for an individual's livelihood. Because of the nation's complex and high tax rates, top-tier enterprises struggle to remain profitable and thrive, which ultimately hinders the market's growth and expansion. These intricate and high tax rates further increase the retail costs of alcoholic drink items, making them expensive on the market and influencing consumers to pick other options. Thus, overall these challenges related taxation system are hindering the growth & expansion of the Alcoholic Drinks Industry in the nation.

Despite these challenges, the US market witnessing a trend of the premiumization of alcoholic drinks. High-quality, limited edition, and vintage products are on the priority list of the consumers for which they are willing to spend, driven by rising purchasing power. Both the spirits and beer sectors are exhibiting this trend as interest in new products in the craft and premium lager categories is still high. In response to the increasing demand for premium alcoholic beverages producers are concentrating on distinctive blends and premium ingredients, further states the research report, “The US Alcoholic Drinks Market Analysis, 2024.”

US Alcoholic Drinks Market Segmentation Analysis

The Spirits Segment Dominates Alcoholic Drinks Industry

Based on the product, the market is further bifurcated into, Beer, Spirits, Wine, Cider, RTDs, and Others. The spirits segment currently dominates the US Alcoholic Drinks Market because this segment offers distinctive flavors and wonderful experiences. Artisanal whiskeys vodkas and gins are among the premium and craft spirits that consumers value most. The growing popularity of mixed drinks with spirits and the rise in cocktail culture are both contributing factors to the segmental revenue growth. Additionally, because of their higher price points in comparison to other segments like beer and wine, the segment registered a market share of more than 35 percent in 2024. The spirit segment leads the US alcoholic drink industry due to its strong brand presence, creative marketing techniques, and ability to adjust to changing consumer preferences, etc.

Off-Trade Segment is the Leading Distribution Channel

Because of the pandemic and rising customer demand for at-home consumption for convenience, the off-trade segment currently has a dominant position in the US market. Due to consumers' preference to not attend pubs or restaurants, supermarkets and hypermarkets have seen tremendous expansion in the industry alongside online merchants. Furthermore, the convenience of buying from internet retailers increases the market domination of this particular area. Through off-trade distribution channels, market demand is being driven by this shift in consumer behavior toward the convenience of having access to a variety of alcoholic drink selections from the comfort of their own home. This increasing demand is expected to support segmental revenue growth over the forecast period.

Competitive Landscape

With strategic initiatives, such as mergers, collaborations, and acquisitions, the leading market companies, including Anheuser-Busch InBev NV, Molson Coors Brewing Co, Constellation Brands Inc., E&J Gallo Winery Inc., Mark Anthony Group Inc., Heineken NV, Boston Beer Co Inc., Diageo Plc, Blue Ribbon Intermediate Holdings LLC, The Wine Group Inc., and others are looking forward to strengthening their market positions.

Key Questions Answered in the Research Report

1. What are the industry’s overall statistics or estimates (Overview, Size- By Value, Forecast Numbers, Segmentation, Shares)?
2. What are the trends influencing the current scenario of the market?
3. What key factors would propel and impede the industry across the nation?
4. How has the industry been evolving in terms of geography & product adoption?
5. How has the competition been shaping up across the country?
6. How have buying behavior, customer inclination, and expectations from product manufacturers been evolving during 2019-30?
7. Who are the key competitors, and what strategic partnerships or ventures are they coming up with to stay afloat during the projected time frame?