US - Vodka Market by Price, Distribution Channel and Product - Forecast and Analysis 2024-2028

Published: Oct 2023

Pages: 139

SKU: IRTNTR45942

Snapshot

US - Vodka Market 2024-2028

The US - Vodka Market size is projected to increase by USD 5.28 billion and the market size is estimated to grow at a CAGR of 4.45% between 2023 and 2028.

This US Vodka Market report extensively covers market segmentation by price (premium and value), distribution channel (on-trade and off-trade), product (unflavored and flavored), and geography (North America). Our report examines historical data from 2018 - 2022, besides analyzing the current market scenario.

The increasing prominence of private-label brands is notably driving the market growth. Private-label vodkas are becoming a key focus area for retailers in the US, as the demand for flavored vodkas and cocktails (that include vodka as an essential ingredient) is high among the millennial population. Retailers are selling different types of vodkas under their private-label brands to increase their profitability, which is contributing to the growth of the US - vodka market. Retailers, especially grocery stores, see private label products as a profitable option, as margins are 10%-15% higher than national and global brands in the US. Private-label vodkas are made exclusively for a single retailer or for a brand that sources its vodka manufacturing to a third party. Major grocery retailers, such as Walmart Inc. and Costco Wholesale Corp., have come up with their own brands of vodkas and the penetration level of private labels in the US. Therefore, the growing prominence of private-label vodkas is expected to drive the growth of the market during the forecast period.

US Vodka Market: Overview

The US Vodka Market shows an Accelerate CAGR during the forecast period.

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Trends

Urbanization and socializing are emerging trends shaping the market growth. Due to the trend of urbanization and socializing, particularly among young adults, there has been an increase in the consumption of vodka in recent years. Over the past few years, the ready-to-drink (RTD) beverage category has grown rapidly due to consumer demand for convenient, high-quality beverage options, variety, and quality. However, vodka-based RTD drinks increased to nearly 46% of the category by 2023, more than doubling their market share. In order to fortify brand image, create market segments, and achieve larger profit margins, the industry players are under constant pressure to innovate through the introduction of unique products or services.

For instance, Diageo plc, a London-based company, introduced Raspberry Crush, a new flavored vodka, under the Smirnoff brand in 2021. The new flavored vodka is distinguished by its labeling, which is colored turquoise and red. Hence, the demand for new products in the vodka market due to urbanization and socializing can boost the growth of the market during the forecast period.

Challenge

Increasing competition from other alcoholic beverages is a significant challenge hindering the market growth. The increasing competition that the US - vodka market faces from the popularity and adoption of other alcoholic beverages, such as tequila, rum, brandy, mezcal, and whiskey, will likely limit market growth during the forecast period. Players operating in the whiskey market are coming up with new flavors to increase the popularity of whiskey among millennial consumers. Also, the growing popularity of craft beer and craft whiskies will affect the growth of the vodka market in the US. Consumer tastes and preferences are changing, and they are now more open to experimenting with new flavors and products.

Consequently, to build their customer base and sustain and grow in the highly competitive market, it has become important for vodka manufacturers in the US to focus on innovative marketing strategies and develop better products. Hence, due to these factors, the growth of the US vodka market is seen to be hampered during the forecast period.

US Vodka Market Segmentation by Distribution Channel

On-trade distribution channels, popularly known as on-premises distribution channels, include establishments where buyers not only purchase vodka but also consume it on the premises. The different types of on-trade distribution channels are bars, pubs, clubs, restaurants, and hotels. The growth of the on-trade distribution segment is mainly driven by the rising consumption of vodka at bars and pubs, particularly by the millennial population in the US. The increasing number of distilleries, the growing number of visitors to vodka distilleries, and the rising number of pubs that serve vodka products are some of the factors that will drive the consumption of vodka through this channel. In addition, bartenders are innovating cocktails based on various vodka products to cater to the demands of consumers. Owing to such factors, the consumption of vodka through the on-trade channel is expected to remain high, which can boost the growth of the US vodka market positively during the forecast period.

US Vodka Market Segmentation by Price

The market share growth by the premium segment will be significant during the forecast period. The premium segment of the US - vodka market includes vodkas that are priced above USD 25 and include premium, high-end premium, and super-premium vodkas in 2023. The growth of the segment will primarily be driven by the increasing perception among consumers that premium vodka products are made from better quality ingredients than value vodkas

The premium segment was the largest and was valued at USD 13.15 billion in 2018

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Also, factors such as the increasing number of new product launches and the extension of existing product lines with the addition of new flavors will drive the premium vodka segment. The US is a developed nation, and millennial consumers, who have high purchasing power, especially in on-trade distribution channels, form an attractive consumer segment for the players in the market. Therefore, the demand for premium vodkas among millennials through on-trade distribution channels is expected to drive the growth of the segment during the forecast period.

Company Overview

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Key Offering- Bacardi Ltd.: The company offers vodka through its brands GREY GOOSE, ERISTOFF, Stillhouse and Ultimate Vodka.
Key Offering- Becle SAB de CV: The company offers vodka under the brand name Three Olives and HANGAR 1.
Key Offering- Brown Forman Corp.: The company offers vodka under the brand name Finlandia.

The US Vodka Market report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Segment Overview

The US Vodka Market report forecasts market growth by revenue and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.

Price Outlook
- Premium
- Value

Distribution Channel Outlook
- On-trade
- Off-trade

Product Outlook
- Unflavored
- Flavored

US Vodka Market Scope
Report Coverage	Details
Page number	139
Base year	2023
Historic period	2018 - 2022
Forecast period	2024-2028
Growth momentum & CAGR	Accelerate at a CAGR of 4.45%
Market Growth 2024-2028	USD 5,284.56 million
Market structure	Fragmented
YoY growth 2023-2024(%)	3.03
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Bacardi Ltd., Becle SAB de CV, Brown Forman Corp., Campari Group, Constellation Brands Inc., Diageo Plc, E. and J. Gallo Winery, Ethical Wine and Spirits Inc., Fifth Generation Inc., Grain and Barrel Spirits, Novabev Group, Pernod Ricard SA, Phillips Distilling Co., Podlaska Wytwornia Wodek POLMOS SA, Polmos Zyrardow Sp. ZOO, Stoli Group S.ar.l., Suntory Holdings Ltd., William Grant and Sons Ltd, Eastside Distilling Inc., and Globefill Inc.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period.
Customization purview	If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

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What are the Key Data Covered in this US Vodka Market Report?

CAGR of the market during the forecast period
Detailed information on factors that will drive the growth of the market between 2024 and 2028
Precise estimation of the US Vodka Market size and its contribution to the market in focus on the parent market
Accurate predictions about upcoming trends and changes in consumer behavior
Growth of the market across the US
A thorough analysis of the market’s competitive landscape and detailed information about companies
Comprehensive analysis of factors that will challenge the growth of US Vodka Market companies

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Table of Contents

1 Executive Summary

1.1 Market overview
- Exhibit 01: Executive Summary – Chart on Market Overview
- Exhibit 02: Executive Summary – Data Table on Market Overview
- Exhibit 03: Executive Summary – Chart on Country Market Characteristics
- Exhibit 04: Executive Summary – Chart on Market Segmentation by Price
- Exhibit 05: Executive Summary – Chart on Market Segmentation by Distribution Channel
- Exhibit 06: Executive Summary – Chart on Market Segmentation by Product
- Exhibit 07: Executive Summary – Chart on Vendor Market Positioning

2 Market Landscape

2.1 Market ecosystem
- Exhibit 08: Parent market
- Exhibit 09: Market Characteristics

3 Market Sizing

3.1 Market definition
- Exhibit 10: Offerings of vendors included in the market definition

3.2 Market segment analysis
- Exhibit 11: Market segments

3.3 Market size 2023

3.4 Market outlook: Forecast for 2023-2028
- Exhibit 12: Chart on US - Market size and forecast 2023-2028 ($ million)
- Exhibit 13: Data Table on US - Market size and forecast 2023-2028 ($ million)
- Exhibit 14: Chart on US: Year-over-year growth 2023-2028 (%)
- Exhibit 15: Data Table on US: Year-over-year growth 2023-2028 (%)

4 Historic Market Size

4.1 Vodka market in US 2018 - 2022
- Exhibit 16: Historic Market Size – Data Table on vodka market in US 2018 - 2022 ($ million)

4.2 Price Segment Analysis 2018 - 2022
- Exhibit 17: Historic Market Size – Price Segment 2018 - 2022 ($ million)

4.3 Distribution channel Segment Analysis 2018 - 2022
- Exhibit 18: Historic Market Size – Distribution channel Segment 2018 - 2022 ($ million)

4.4 Product Segment Analysis 2018 - 2022
- Exhibit 19: Historic Market Size – Product Segment 2018 - 2022 ($ million)

5 Five Forces Analysis

5.1 Five forces summary
- Exhibit 20: Five forces analysis - Comparison between 2023 and 2028

5.2 Bargaining power of buyers
- Exhibit 21: Chart on Bargaining power of buyers – Impact of key factors 2023 and 2028

5.3 Bargaining power of suppliers
- Exhibit 22: Bargaining power of suppliers – Impact of key factors in 2023 and 2028

5.4 Threat of new entrants
- Exhibit 23: Threat of new entrants – Impact of key factors in 2023 and 2028

5.5 Threat of substitutes
- Exhibit 24: Threat of substitutes – Impact of key factors in 2023 and 2028

5.6 Threat of rivalry
- Exhibit 25: Threat of rivalry – Impact of key factors in 2023 and 2028

5.7 Market condition
- Exhibit 26: Chart on Market condition - Five forces 2023 and 2028

6 Market Segmentation by Price

6.1 Market segments
- Exhibit 27: Chart on Price - Market share 2023-2028 (%)
- Exhibit 28: Data Table on Price - Market share 2023-2028 (%)

6.2 Comparison by Price
- Exhibit 29: Chart on Comparison by Price
- Exhibit 30: Data Table on Comparison by Price

6.3 Premium - Market size and forecast 2023-2028
- Exhibit 31: Chart on Premium - Market size and forecast 2023-2028 ($ million)
- Exhibit 32: Data Table on Premium - Market size and forecast 2023-2028 ($ million)
- Exhibit 33: Chart on Premium - Year-over-year growth 2023-2028 (%)
- Exhibit 34: Data Table on Premium - Year-over-year growth 2023-2028 (%)

6.4 Value - Market size and forecast 2023-2028
- Exhibit 35: Chart on Value - Market size and forecast 2023-2028 ($ million)
- Exhibit 36: Data Table on Value - Market size and forecast 2023-2028 ($ million)
- Exhibit 37: Chart on Value - Year-over-year growth 2023-2028 (%)
- Exhibit 38: Data Table on Value - Year-over-year growth 2023-2028 (%)

6.5 Market opportunity by Price
- Exhibit 39: Market opportunity by Price ($ million)
- Exhibit 40: Data Table on Market opportunity by Price ($ million)

7 Market Segmentation by Distribution Channel

7.1 Market segments
- Exhibit 41: Chart on Distribution Channel - Market share 2023-2028 (%)
- Exhibit 42: Data Table on Distribution Channel - Market share 2023-2028 (%)

7.2 Comparison by Distribution Channel
- Exhibit 43: Chart on Comparison by Distribution Channel
- Exhibit 44: Data Table on Comparison by Distribution Channel

7.3 On-trade - Market size and forecast 2023-2028
- Exhibit 45: Chart on On-trade - Market size and forecast 2023-2028 ($ million)
- Exhibit 46: Data Table on On-trade - Market size and forecast 2023-2028 ($ million)
- Exhibit 47: Chart on On-trade - Year-over-year growth 2023-2028 (%)
- Exhibit 48: Data Table on On-trade - Year-over-year growth 2023-2028 (%)

7.4 Off-trade - Market size and forecast 2023-2028
- Exhibit 49: Chart on Off-trade - Market size and forecast 2023-2028 ($ million)
- Exhibit 50: Data Table on Off-trade - Market size and forecast 2023-2028 ($ million)
- Exhibit 51: Chart on Off-trade - Year-over-year growth 2023-2028 (%)
- Exhibit 52: Data Table on Off-trade - Year-over-year growth 2023-2028 (%)

7.5 Market opportunity by Distribution Channel
- Exhibit 53: Market opportunity by Distribution Channel ($ million)
- Exhibit 54: Data Table on Market opportunity by Distribution Channel ($ million)

8 Market Segmentation by Product

8.1 Market segments
- Exhibit 55: Chart on Product - Market share 2023-2028 (%)
- Exhibit 56: Data Table on Product - Market share 2023-2028 (%)

8.2 Comparison by Product
- Exhibit 57: Chart on Comparison by Product
- Exhibit 58: Data Table on Comparison by Product

8.3 Unflavored - Market size and forecast 2023-2028
- Exhibit 59: Chart on Unflavored - Market size and forecast 2023-2028 ($ million)
- Exhibit 60: Data Table on Unflavored - Market size and forecast 2023-2028 ($ million)
- Exhibit 61: Chart on Unflavored - Year-over-year growth 2023-2028 (%)
- Exhibit 62: Data Table on Unflavored - Year-over-year growth 2023-2028 (%)

8.4 Flavored - Market size and forecast 2023-2028
- Exhibit 63: Chart on Flavored - Market size and forecast 2023-2028 ($ million)
- Exhibit 64: Data Table on Flavored - Market size and forecast 2023-2028 ($ million)
- Exhibit 65: Chart on Flavored - Year-over-year growth 2023-2028 (%)
- Exhibit 66: Data Table on Flavored - Year-over-year growth 2023-2028 (%)

8.5 Market opportunity by Product
- Exhibit 67: Market opportunity by Product ($ million)
- Exhibit 68: Data Table on Market opportunity by Product ($ million)

9 Customer Landscape

9.1 Customer landscape overview
- Exhibit 69: Analysis of price sensitivity, lifecycle, customer purchase basket, adoption rates, and purchase criteria

10 Drivers, Challenges, and Trends

10.1 Market drivers

10.2 Market challenges

10.3 Impact of drivers and challenges
- Exhibit 70: Impact of drivers and challenges in 2023 and 2028

10.4 Market trends

11 Vendor Landscape

11.1 Overview

11.2 Vendor landscape
- Exhibit 71: Overview on Criticality of inputs and Factors of differentiation

11.3 Landscape disruption
- Exhibit 72: Overview on factors of disruption

11.4 Industry risks
- Exhibit 73: Impact of key risks on business

12 Vendor Analysis

12.1 Vendors covered
- Exhibit 74: Vendors covered

12.2 Market positioning of vendors
- Exhibit 75: Matrix on vendor position and classification

12.3 Bacardi Ltd.
- Exhibit 76: Bacardi Ltd. - Overview
- Exhibit 77: Bacardi Ltd. - Product / Service
- Exhibit 78: Bacardi Ltd. - Key offerings

12.4 Becle SAB de CV
- Exhibit 79: Becle SAB de CV - Overview
- Exhibit 80: Becle SAB de CV - Business segments
- Exhibit 81: Becle SAB de CV - Key offerings
- Exhibit 82: Becle SAB de CV - Segment focus

12.5 Brown Forman Corp.
- Exhibit 83: Brown Forman Corp. - Overview
- Exhibit 84: Brown Forman Corp. - Product / Service
- Exhibit 85: Brown Forman Corp. - Key offerings

12.6 Campari Group
- Exhibit 86: Campari Group - Overview
- Exhibit 87: Campari Group - Business segments
- Exhibit 88: Campari Group - Key offerings
- Exhibit 89: Campari Group - Segment focus

12.7 Constellation Brands Inc.
- Exhibit 90: Constellation Brands Inc. - Overview
- Exhibit 91: Constellation Brands Inc. - Business segments
- Exhibit 92: Constellation Brands Inc. - Key offerings
- Exhibit 93: Constellation Brands Inc. - Segment focus

12.8 Diageo Plc
- Exhibit 94: Diageo Plc - Overview
- Exhibit 95: Diageo Plc - Business segments
- Exhibit 96: Diageo Plc - Key offerings
- Exhibit 97: Diageo Plc - Segment focus

12.9 E. and J. Gallo Winery
- Exhibit 98: E. and J. Gallo Winery - Overview
- Exhibit 99: E. and J. Gallo Winery - Product / Service
- Exhibit 100: E. and J. Gallo Winery - Key offerings

12.10 Eastside Distilling Inc.
- Exhibit 101: Eastside Distilling Inc. - Overview
- Exhibit 102: Eastside Distilling Inc. - Product / Service
- Exhibit 103: Eastside Distilling Inc. - Key news
- Exhibit 104: Eastside Distilling Inc. - Key offerings

12.11 Ethical Wine and Spirits Inc.
- Exhibit 105: Ethical Wine and Spirits Inc. - Overview
- Exhibit 106: Ethical Wine and Spirits Inc. - Product / Service
- Exhibit 107: Ethical Wine and Spirits Inc. - Key offerings

12.12 Fifth Generation Inc.
- Exhibit 108: Fifth Generation Inc. - Overview
- Exhibit 109: Fifth Generation Inc. - Product / Service
- Exhibit 110: Fifth Generation Inc. - Key offerings

12.13 Globefill Inc.
- Exhibit 111: Globefill Inc. - Overview
- Exhibit 112: Globefill Inc. - Product / Service
- Exhibit 113: Globefill Inc. - Key offerings

12.14 Novabev Group
- Exhibit 114: Novabev Group - Overview
- Exhibit 115: Novabev Group - Business segments
- Exhibit 116: Novabev Group - Key offerings
- Exhibit 117: Novabev Group - Segment focus

12.15 Pernod Ricard SA
- Exhibit 118: Pernod Ricard SA - Overview
- Exhibit 119: Pernod Ricard SA - Product / Service
- Exhibit 120: Pernod Ricard SA - Key offerings

12.16 Polmos Zyrardow Sp. ZOO
- Exhibit 121: Polmos Zyrardow Sp. ZOO - Overview
- Exhibit 122: Polmos Zyrardow Sp. ZOO - Product / Service
- Exhibit 123: Polmos Zyrardow Sp. ZOO - Key offerings

12.17 Suntory Holdings Ltd.
- Exhibit 124: Suntory Holdings Ltd. - Overview
- Exhibit 125: Suntory Holdings Ltd. - Business segments
- Exhibit 126: Suntory Holdings Ltd. - Key offerings
- Exhibit 127: Suntory Holdings Ltd. - Segment focus

13 Appendix

13.1 Scope of the report

13.2 Inclusions and exclusions checklist
- Exhibit 128: Inclusions checklist
- Exhibit 129: Exclusions checklist

13.3 Currency conversion rates for US$
- Exhibit 130: Currency conversion rates for US$

13.4 Research methodology
- Exhibit 131: Research methodology
- Exhibit 132: Validation techniques employed for market sizing
- Exhibit 133: Information sources

13.5 List of abbreviations
- Exhibit 134: List of abbreviations

Methodology

Research Framework

Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.

INFORMATION SOURCES

Primary sources

Manufacturers and suppliers
Channel partners
Industry experts
Strategic decision makers

Secondary sources

Industry journals and periodicals
Government data
Financial reports of key industry players
Historical data
Press releases

DATA ANALYSIS

Data Synthesis

Collation of data
Estimation of key figures
Analysis of derived insights

Data Validation

Triangulation with data models
Reference against proprietary databases
Corroboration with industry experts

REPORT WRITING

Qualitative

Market drivers
Market challenges
Market trends
Five forces analysis

Quantitative

Market size and forecast
Market segmentation
Geographical insights
Competitive landscape

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Key Questions Answered

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What are the revenue-generating key market segments?
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What are the latest trends influencing the growth of this market?
What are the variables influencing the market growth in the primary regions?
What are the factors influencing the growth of the parent market?

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