Alcoholic beverages industry in the U.S. - Statistics & Facts
The alcoholic beverage market in the U.S. is undergoing several changes. Where beer was once the country's favorite alcoholic beverage, today its market share has shrunk to 42 percent of supplier gross revenues. For the first time in 2022, spirits took up the mantel as America's preferred alcohol and has retained the position since. At the same time, younger consumers are reconsidering their relationship with alcohol. More than ever before, they are choosing to forego alcohol entirely.
Younger generations pose a challenge for the alcoholic beverages industry. Compared to older Americans, fewer drink alcohol on a regular basis. In contrast to the stereotype of younger people being more carefree, they are also more concerned about the health impacts of alcohol than any other age group. Economic uncertainty and price increases are hurting the industry now but winning over younger consumers may prove vital to long term success.
Revenue and volume diverge
Although revenue from alcoholic drinks continues to climb due to price increases, volume has stalled. This has led many to wonder about the long term prospects for the industry as upcoming generations drink less and are more concerned about the effects of alcohol consumption. Beer saw a sharp contraction in revenue 2020, but has since surpassed the high prior to the pandemic. Domestic beer remains the largest segment with a 68 percent share of the market. Retail sales of wine also dipped in 2020, falling 10 percent compared to 2019 but have since reached an all time high of 78.4 billion dollars. As with alcohol generally, direct to consumer sales of wine grew during the pandemic, in part due to online sales. 2022 saw the first decline in such sales and the reduction has not stopped as consumers are increasingly re-evaluating their spending. Revenue in the spirits industry continues to climb, but unlike the story of declining volume in the industry more generally, spirits volumes have increased as well. Vodka remains the most popular segment of the industry.Changes in consumption
Alcohol consumption in the United States has been steadily growing for years. Per capita, Americans consumed 2.5 gallons of alcohol in 2022. Although this was a decline compared to the previous year, it still represents growth of over 13 percent compared to 20 years ago. Consumption of beer has declined and is expected to continue to do so into the foreseeable future. Wine consumption in the U.S. has been particularly hard hit. Although it bucked the trend during the pandemic and continued upward, just like direct-to-consumer sales, 2022 saw an abrupt decline. 2023 was even worse with average consumption dropping an additional 9.5 percent. Distilled spirits on the other hand have continued to register impressive growth in consumption, with Americans drinking over 2.9 gallons in 2023, up from 1.98 gallons in 2021.Younger generations pose a challenge for the alcoholic beverages industry. Compared to older Americans, fewer drink alcohol on a regular basis. In contrast to the stereotype of younger people being more carefree, they are also more concerned about the health impacts of alcohol than any other age group. Economic uncertainty and price increases are hurting the industry now but winning over younger consumers may prove vital to long term success.
