Hot to handle: The rising popularity of cocktails has resulted in increased liquor and spirits consumption

The Distilleries industry includes producers that distill potable liquors, blend liquors and mix liquors with other ingredients. The industry has experienced robust growth over the past five years due to favorable economic conditions, including an increase in consumer spending on alcohol. A trend toward premiumization, or an increase in the consumption of high-grade liquors and spirits, allowed producers to sell higher-priced items, boosting profit margins and revenue. Craft and artisanal spirits have also been a driving force of revenue and enterprise growth in recent years. In the past five years, the popularity of cocktails has resulted in increased liquor and spirits consumption in social drinking locations, such as bars and nightclubs...purchase to read more.

Industry Statistics & Market Size
Annual Growth 12-17
Forecast Growth 17-22

Industry Threats & Opportunities

  • Demand for higher-priced craft and premium spirits will boost industry revenue growth
  • Importers benefit most from premiumization because consumers are willing to spend more on quality products
  • The increase in America’s drinking-age population will outpace general population growth
  • Industry Report - Industry Key Buyers Chapter

    The Distilleries industry has a medium level of market share concentration. In 2017, the top four distilleries control an estimated 57.1% of industry revenue. These companies' market share declined from 63.1% in 2012, mainly due to the entrance of new craft distilleries. The remainder of the market share is spread out over regional and local brands. These companies have smaller distilleries, most of which will not expand beyond their regional or niche markets.There are fewer such players compared to the wine and beer markets. This is because microbreweries and wineries are relatively easy to set up, but distilleries are more tightly regulated and face steeper tax rates due to the higher alcohol content of their product. How...purchase to read more.

    Additional Insights for the Distilleries Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Distilleries Industry are

  • Effective product promotion
  • Economies of scale
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Per capita expenditure on alcohol and Per capita disposable income in the Distilleries industry impact industry performance..

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    What's in this report

    What is the Distilleries Industry?

    This industry consists of establishments engaged in distilling spirits (i.e. not beer or wine). The three main activities they are engaged in is distilling potable liquors (except brandies), blending liquors, and mixing liquors with other ingredients. These spirits are then bottled and sold primarily to liquor wholesalers, as well as to other retail stores.

    Industry Products
  • Vodka
  • Gin
  • Whiskey
  • Other spirit
  • Rum
  • Cordials
  • Tequila
  • Industry Activities
  • Distilling liquors
  • Blending liquors
  • Bottling liquors
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita expenditure on alcohol
  • Per capita disposable income
  • Excise tax on distilled spirits
  • Trade-weighted index

  • Current Performance
  • Industry landscape
  • Craft spirit boom
  • Premiumization drives growth
  • Volatile profit margins
  • Chart: Revenue Growth

  • Industry Outlook
  • Aging population poses opportunity
  • Industry structure
  • Profit margins expand further
  • Table: Distilleries Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Distilleries Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wine & Spirits Wholesaling

  • Key Selling Industries
  • Cardboard Box & Container Manufacturing
  • Corn, Wheat & Soybean Wholesaling
  • Glass Product Manufacturing
  • Printing
  • Sugar Processing

  • Products & Services
  • Whiskey
  • Vodka
  • Tequila
  • Cordials
  • Rum
  • Gin
  • Other spirit
  • Chart: Distilleries Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Wholesalers to retail and liquor stores
  • Wholesalers to bars and nightclubs
  • Exports
  • Wholesalers to food and drink stores
  • Chart: Major Market Segmentation for the Distilleries Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Marketing
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Distilleries

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Distilleries Industry

  • Industry Globalization
    Diageo PLC, Brown-Forman Corp., Beam Suntory Inc.,
  • Table: Diageo PLC - financial performance
  • Table: Brown-Forman Corp. - financial performance
  • Table: Beam Suntory Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Distilleries Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Distilleries Industry
  • Industry Revenue (2008-2022)
  • Industry Gross Product (2008-2022)
  • Establishments (2008-2022)
  • Businesses (2008-2022)
  • Employment (2008-2022)
  • Exports (2008-2022)
  • Imports (2008-2022)
  • Wages (2008-2022)
  • Per Capita Expenditure on Alcohol (2008-2022)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Control States
  • States where local, state and/or federal government controls the sale of alcohol. Uniform pricing. There are 17 control states/jurisdictions in the US.
  • Craft Spirits
  • Products of independently-owned distilleries where products are both made and bottled on-site. Must produce no more than 52,000 cases of sales annually or produce less than 200,000 gallons annually.
  • Distillation
  • The evaporation and collection of a liquid, undertaken in order to separate a more volatile liquid from a less volatile one; used as a means of purification.
  • Off-Premises
  • The purchase of liquor in packaged form (bottles, cans or casks) for consumption at home or anywhere other than the location of purchase.
  • On-Premises
  • The purchase of liquor for immediate consumption.
  • Open States
  • States where alcohol is allowed to be sold by private enterprises or citizens. Prices set by owner.
  • Premiumization
  • Trading up toward products that are of a higher quality and price.
  • Ready-To-Drink (Rtd)
  • A bottled beverage that typically has some combination of spirits and juices. Examples include Smirnoff Ice and Jack Daniels and Cola.
  • Still
  • A distilling apparatus, consisting of a vessel, in which a liquid is heated and vaporized, and a cooling device or coil for condensing the vapor.
  • What Our Customers Say

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    The Distilleries industry market report contains strategic analysis of the key drivers influencing the industry. Save hours of time on research and prospecting using IBISWorld’s standardized, up-to-date reports on thousands of industries. Our industry research provides growth and profit forecasts for a five-year outlook period, presented in a clear and user-friendly format.

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    This report on Distilleries:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Distilleries market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Distilleries, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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