Bottoms up: Accelerated increases in per capita expenditure on alcohol will lead to continued revenue growth

The Vodka Distilleries industry has experienced impressive growth in both revenue and establishments over the five years to 2017. Consumers have increasingly gravitated toward alcoholic beverages that offer high quality, "craft"-based ingredients, and a new class of regional vodka distillers has emerged to satisfy this new consumer trend. Over the five years to 2022, the industry is anticipated to continue growing, though at a slightly slower rate than the previous five-year period. During the five-year period, the industry will benefit from expected increases in per capita expenditure on alcohol and disposable income, which will drive demand for more high-value industry goods...read more.

Industry Statistics & Market Size
Revenue
$4bn
Annual Growth 12-17
6.0%
Forecast Growth 17-22
Profit
Employment
2,925
Businesses
224
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Industry Threats & Opportunities

  • The rate of industry entrants will slow moving forward, as the operating environment becomes more competitive
  • Demand for a growing range of premium craft products contributed to the industry's revenue and profit growth
  • Niche products will likely expand their presence in the industry over the coming years
  • Industry Report - Industry Investment Chapter

    The Vodka Distilleries industry has a high level of capital intensity. The average operator dedicates $1.08 to capital equipment for every dollar spent on labor. Capital expenses vary by operator and depend on the size of the distillery. Large, vertically and horizontally integrated distilleries dedicate more of their revenue to capital expenses since their distillery processes span a wide range of products and markets. These operators must be able to respond to a larger stream of demand in a quick and efficient manner. By contrast, small, craft distilleries do not spend as much on equipment and may prefer using manual labor to perform many of the distillation and bottling activities.Over the past five years, industry capital intensity has declined. Whi...purchase to read more.

    Additional Insights for the Vodka Distilleries Industry

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

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

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    What is the Vodka Distilleries Industry?

    This industry manufactures vodka from fermented potatoes or cereal grains to create traditional (i.e. not flavored), flavored, craft and low-calorie spirits for consumption.

    Industry Products
  • Value vodka
  • Premium vodka
  • Ultra-premium vodka
  • Industry Activities
  • Manufacturing vodka through the process of distillation
  • Bottling and packaging vodka
  • Marketing vodka
  • 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 disposable income
  • Per capita expenditure on alcohol
  • Excise tax on distilled spirits
  • Trade-weighted index
  • Number of adults aged 20 to 64

  • Current Performance
  • Changing consumption habits
  • Imports and exports
  • Chart: Revenue Growth

  • Industry Outlook
  • Downstream demand and niche products
  • Taxes
  • Trade and inputs
  • Table: Vodka Distilleries Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Vodka 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
  • Fruit & Vegetable Wholesaling
  • Glass Product Manufacturing
  • Printing
  • Sugar Processing

  • Products & Services
  • Ultra-premium vodka
  • Premium vodka
  • Value vodka
  • Chart: Vodka Distilleries Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 35 to 64
  • Consumers under 35 years old
  • Consumers over 65 years old
  • Exports
  • Chart: Major Market Segmentation for the Vodka Distilleries Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitPurchases and depreciationMarketingWagesRent, utilities and other costs
  • Chart: Cost Structure Benchmarking – Sector vs Vodka Distilleries

  • Basis of Competition
  • Internal competition
  • External competition

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

  • Industry Globalization
    Diageo PLCFifth Generation Inc.Heaven Hill Distilleries Inc.Campari America
  • Table: Diageo PLC - financial performance
  • Table: Fifth Generation Inc. - financial performance
  • Table: Heaven Hill Distilleries Inc. - financial performance
  • Table: Campari America - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Vodka 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 Vodka Distilleries Industry
    Includes:
  • 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
    Body
  • The liquid that is collected after distillation and will ultimately be filtered into the finished product.
  • Heads
  • The initial liquid that is recovered during distillation. This liquid contains methanol and other chemicals that are undrinkable and must be discarded.
  • Premium Vodka
  • Vodka that retails between $20 and $39.99 per 1.75 liters.
  • Premiumization
  • The trend of consumers trading up to higher-value alcoholic beverages.
  • Tails
  • The remaining liquid that is recovered at the end of distillation. This liquid contains additional hazardous alcohols and must also be discarded.
  • Ultra-Premium Vodka
  • Vodka that retails for $40 or more per 1.75 liters.
  • Wash
  • Liquid containing fermented ingredients that will ultimately be filtered and distilled into vodka.
  • Why buy this report?

    The Vodka Distilleries Industry Research Report measures market size, analyses current and future trends, and provides an indication of market share for the industry’s largest companies. IBISWorld’s collection of industry market research reports gives you insightful, up-to-date information on the supply chains, economic drivers, and key buyers and markets for hundreds of industries.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Vodka 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 Vodka 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 Vodka Distilleries, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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