Tequila is now the American whiskey of choice.
Tequila, a Mexican spirit, has become the second most valuable spirit in the US after American whiskey.
IWSR Drinks Market Analysis also stated that Tequila would surpass vodka as the largest category in terms of value by 2023.
The US saw an increase in spirits volume sales of 2% in 2022, with strong demand for premium products.
According to IWSR statistics, premium spirits sales increased by 13% last year in volume terms.
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IWSR reported that Agave spirits accounted for US$1.6 billion in contributions to the spirits sector in 2022. This was responsible for 70% overall volume growth and 65% overall value growth in total US spirits.
The total volume of spirits sales increased, but wine and beer both declined by 2%. Cider fell by 4%.
New data on spirits sales in the US revealed Tequila surpassed American whiskey in value terms last year https://t.co/ejq4roJS04
— The Spirits Business (@spiritsbusiness) January 10, 2023
Ready to drink (RTD), spirits offerings showed moderate gains of less that 1% but a 38% increase in the premium section.
Brandy Rand, chief strategist officer, IWSR Drinks Market Analysis said that “Economic uncertainty continued through 2022, ranging form inflation to talk of a recession and supply chain instability to supply chains instability to discuss about a recession.”
“Despite this, IWSR’s recent consumer price sensitivity survey found that Americans are confident about their personal finances.
IWSR observed that people who earn more than US$150,000 per year are ‘especially secure’ in terms of demographics. Millennials were more confident than older drinkers across all age groups.
IWSR reported that consumer spending and purchasing volume increased in 2022, compared to 2021 for most of the categories.
Spirits are the leading brand in premiumization. IWSR reported that 33% of Americans had spent at least US$50 on alcohol in 2022, compared to 24% the year before.
Six out of ten online shoppers reported that they spend more online on alcohol than in-store.
Rand said, “At-home consumption is another area in which premiumization is proving to have a significant impact on volume.”
“Despite the fact that 46% of Americans drink alcohol at home, they say they will likely treat themselves to higher quality beverages there. This is good news for wine and beer as well.