CLEVELAND, Aug. 18, 2016 /PRNewswire/ -- US consumption of distilled spirits is forecast to rise 2.2% annually, reaching 580 million gallons in 2020 – a rate of growth almost 3 times faster than that of the US population. "Vodka and tequila are expected to post the fastest growth among the major segments of this market," says Erica Keenan, market analyst for Freedonia Focus Reports. "Producers of these spirits will benefit in part from a flourishing US cocktail culture inspired by retro-themed television shows such as Mad Men."
Full Report Compares Trends by Major Product. According to Distilled Spirits: United States – a newly published report from Freedonia Focus Reports, a division of The Freedonia Group – vodka will remain the largest segment in terms of volume, bolstered by its widespread use in cocktails. Demand for this spirit is forecast to rise 3.7% annually to 2020.
Similarly robust gains are expected for tequila, due in part to the growing Hispanic influence on US culture. In fact, the Hispanic population is forecast to rise more than 2.6 times faster than the general population, and celebrations such as Cinco de Mayo are becoming more widespread. Orders of the tequila-based margarita – already the most popular cocktail in bars and restaurants – more than double on this holiday each year.
The versatility of tequila will benefit all tiers of the market, from value to superpremium brands. While many consumers enjoy tequila at various price points in margarita form, many high-end varieties are gaining in popularity as beverages to be sipped and savored "neat".
Since tequila, by definition, must be produced in Mexico, the widespread popularity of this spirit among US consumers will continue to drive vigorous advances in trade. Tequila imports grew 5.0% per year, on average, between 2005 and 2015.
About Freedonia Focus Reports Each month, The Freedonia Group publishes over 20 new or updated Freedonia Focus Reports, providing fresh, unbiased analysis on a wide variety of markets and industries. Published in 20-30 pages, Focus Report coverage ranges from raw materials to finished manufactured goods and related services such as freight and construction. Analysis guides the busy reader through pertinent topics in rapid succession, including:
Total historical market size and industry output
Segmentation by products and markets
Identification of market drivers, constraints, and key indicators