North America bourbon spirits market was valued at $2643.2 million in 2021 and is projected to reach $4026.3 million by 2031, growing at a CAGR of 4.2% from 2022 to 2031.
North America is one of the major consumers that solely accounted for more than 35% of the overall bourbon spirits market share in 2021. The impact of COVID-19 was unprecedented, which impeding the market growth during the pandemic. One of the factors that has contributed to the recovery of the North America bourbon market is the increased demand for at-home drinking. With many bars and restaurants closed or operating at limited capacity during the pandemic, consumers turned to buying bottles of bourbon to enjoy at home. The alcoholic beverages market is evolving with technological enhancements in the North America beverages industry owing to increase in popularity of alcohol among the young and millennials worldwide.
The market offers several alcoholic drinks to consumers such as beer, wine, and spirits. Out of these, bourbon spirits have gained huge popularity in the North America market. Bourbon spirits is a distilled alcoholic drink that opens up a broad range of options to cater to the surge in demand for spirits. The trend of drinking different alcoholic drinks has led to an increase in the popularity of bourbon spirits products in the marketplace. Premiumization remains to be one of the major factors expected to drive the alcoholic beverages industry. The demand for premium cocktails is attributed to the trend of mixed drinks and crafted cocktails.
Pre-mixed and fresh cocktail manufacturers favor premium ingredients instead of artificial colorants & flavors to provide natural appeal in the drinks. and. Bourbon spirits are popular for their natural taste and they offer earthy appeal to the drink and most of the on-trade counters are utilize a huge quantity of bourbon spirits to offer premium drinks.
According to the report published by the Bacardi Cultural Insights Network 2021, 37% of bartenders voted bourbon spirits as the top spirit that preimmunize cocktails and other alcoholic drinks. The emergence of modern on-trade channels and increase in disposable income further ensure higher consumption of bourbon spirits-based cocktails in North America. Young consumers are more inclined toward well-crafted, flavored spirits that are artisanally produced and have an authentic and heritage-rich brand story.
By Type
Barrel finished segment would witness the fastest growth, registering a CAGR of 5.5% during the forecast period.
For this reason, whiskey particularly has become one of the fastest selling beverages among alcoholic beverages. Bartenders are increasingly using top-tier whiskey brands as an ingredient in cocktails. Hence, the ‘cocktail culture’ trend has become one of the driving factors for the market growth. Furthermore, the North American bourbon spirit market has experienced a trend toward premiumization, as consumers increasingly seek out higher-quality and more expensive bourbons.
This trend has been driven by a surge in appreciation for the craftsmanship and heritage behind bourbon production, as well as a desire for unique and exclusive experiences. Another trend in the market is the rise of flavored bourbons, with flavors such as honey, cinnamon, and apple becoming increasingly popular among consumers. This factor is expected to drive the bourbon spirit market growth in North America. A paradigm shift has been witnessed in the consumer’s way of living for the past several years, owing to the fact that consumers have become more conscious of their health and intake of food & drinks.
By Abv
40-45% segment would witness the fastest growth, registering a CAGR of 4.9% during the forecast period.
In addition, alarming rise in prevalence of ill effects on health due to alcohol consumption acts as a restraint to the market expansion. According to the IWSR Drinks Market Analysis report 2021, approximately 52% of the adult population is trying to reduce alcohol consumption in the U.S. Therefore, consumers have shifted their preference from spirits with high alcohol-by-volume (ABV) such as vodka, bourbon spirits, and others to low/zero alcoholic drinks. The IWSR further revealed that the volume of low/nonalcoholic spirits has increased by 32.7%. Thus, drinks with high ABV are expected to face significant challenges during the forecast period.
In the recent past, the number of bars, pubs, breweries, and restaurants serving alcohol has increased manifold. The major factors driving this growth are rise in consumer spending, rapid urbanization, product innovation, and rise in demand from the millennial population. The acceptance of alcoholic beverages, for social events including marriages, events, award functions, and several similar social gatherings, has generated a positive growth prospect for the bourbon spirits market.
By Distribution Channel
Off-trade segment would witness the fastest growth, registering a CAGR of 5.0% during the forecast period.
The market has developed at a fast pace in recent years, and more people now consider bourbon whisky as an affordable luxury. The increase in acceptance of bourbon whisky has led to growth in demand for different spirits such as premium and organic. The shift in consumer consciousness and demand for innovative products have led to an increase in desire for bourbon spirits distilled with organic malted barley and grains. This consumer demand can be regarded as an opportunity for the manufacturers to broaden their market base. Bourbon spirit originated in the 17th century in North America and is now consumed in approximately 100 countries worldwide. Initially, it was a medicinal purpose liquor, however, it has become an internationally recognized alcoholic beverage now. It is frequently sipped with other beverages to enjoy in a trendy cocktail format or as a pre-dinner drink.
The revenue contributed by bourbon spirits market is expected to surge by about 5% year-on-year growth in North America. On the other hand, the volumetric consumption of bourbon spirits is expected to rise by the year 2031. Bourbon spirit continues to perform decently in both off-trade and on-trade channels. However, the outbreak of novel coronavirus impacted sales through on-trade channels worldwide.
Manufacturers are increasingly focusing on online retailing by dealing with e-commerce giants and developing e-delivery systems. Among these, the U.S. is the largest producer, consumer, and exporter of all types of bourbon spirits, and the consumers in the country enjoy several options of the product. Thus, manufacturers capitalize on increase in production capabilities and export destinations to meet the surge in demand from several overseas markets. In developed markets, individuals prefer to “drink better, not more” and seek for products that meet their superior quality, taste, and authenticity. Thus, in response to the sustained premiumization of spirits, manufacturers develop more premium and luxurious bourbon spirits, which is expected to increase its adoption among North American consumers during the forecast period.
The North America bourbon spirit market is segmented into type, ABV, distribution channel, and country. By type, the market is segregated into wheated, barrel finished, barrel select, and others. Depending on alcohol-by-volume (ABV), it is classified into 40-45%, 46-55%, and 56% & above. By distribution channel, it is fragmented into on-trade (hotel, bar, pub, and others) and off-trade (supermarkets/hypermarkets, convenience stores, specialty stores, online retailers, and others). Country-wise, the market is analyzed across the U,S., Canada, Mexico.
Some of the key players profiled in the North America bourbon spirits market analysis include Brown-Forman Corporation, MGP Ingredients, Inc., Laws Whiskey House, Conecuh Brands, LLC, Distiller’s Way, LLC, Sazerac Company, Inc, Bacardi Limited., Michters Distillery LLC., Heaven Hill Brands, Nashville Barrel Company, Bardstown Bourbon Company, Wyoming Whiskey, Inc., and Jos. A. Magnus & Co. These players have adopted different strategies such as new partnership, product launch, and expansion to increase their market share and maintain dominant shares in North America.
KEY BENEFITS FOR STAKEHOLDERS
- The study provides an in-depth analysis of the market with current and future trends to elucidate the imminent investment pockets.
- Information regarding key drivers, restraints, and opportunities along with their impact analysis on the market is provided in the report.
- Porter's Five Forces analysis illustrates the potency of buyers and suppliers operating in the industry.
- The quantitative analysis of the North America bourbon spirits market from 2021-2031 is provided to determine the market potential.
North America Bourbon Spirits Market Report Highlights
| Aspects | Details |
 By Type |
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 By ABV |
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 By Distribution Channel |
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 By Region |
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 Key Market Players | LAWS WHISKEY HOUSE, CONECUH BRANDS, LLC, HEAVEN HILL BRANDS, NASHVILLE BARREL COMPANY, BROWN-FORMAN CORPORATION, DISTILLER’S WAY, LLC, WYOMING WHISKEY, INC., SAZERAC COMPANY, INC, BARDSTOWN BOURBON COMPANY, BACARDI LIMITED., JOS. A. MAGNUS AND CO., MGP INGREDIENTS, INC., MICHTERS DISTILLERY LLC. |
Analyst Review
According to the CXOs of leading companies, the North America bourbon spirits market is expected to grow at a significant rate during the forecast period owing to various factors such as premium positioning and craft varieties through product innovations, rise in acceptance and consumption of alcoholic beverages, and growing demand from young consumers. The bourbon whiskey consumption is led by North America and the region also has higher per capita daily consumption of alcoholic beverages, as compared to other regions.
A growing interest in premium and super-premium bourbons, and the rise of cocktail culture are all contributing to the market's growth. Additionally, the pandemic has led to a surge in at-home consumption of spirits, which has also had a positive impact on the bourbon market. Moreover, there is a growing trend towards sustainable and eco-friendly production practices, which can help companies differentiate themselves and appeal to environmentally conscious consumers. .
The CXOs further added that Canada and Mexico is projected to register significant growth as compared to the U.S., due to factors such as rise in consumer spending, increase in consumption of whiskey, and its acceptance in social gatherings & events. The North America bourbon spirit market is segmented into type, ABV, distribution channel, and region. By type, the market is segregated into wheated, barrel finished, barrel select, and others. Depending on alcohol-by-volume (ABV), it is classified into 40-45%, 46-55%, and 56% & above. By distribution channel, it is fragmented into on-trade (hotel, bar, pub, and others) and off-trade (supermarkets/hypermarkets, convenience stores, specialty stores, online retailers, and others).
Country-wise, the market is analyzed across the U.S., Canada, Mexico. Some of the key players profiled in the bourbon spirits market analysis include Brown-Forman Corporation, MGP Ingredients, Inc., Laws Whiskey House, Conecuh Brands, LLC, Distiller’s Way, LLC, Sazerac Company, Inc, Limited, Bacardi Limited., Michters Distillery LLC., Heaven Hill Brands, Nashville Barrel Company, Bardstown Bourbon Company, Wyoming Whiskey, Inc., and Jos. A. Magnus & Co.
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