A Spirited Surge: The Growth of the Premium American Whiskey Market
In recent years, the American whiskey market has experienced a remarkable surge, driven by evolving consumer preferences, innovative product offerings, and a renewed appreciation for craft and heritage spirits. This resurgence reflects a broader shift towards premiumization and a desire for authentic, high-quality products.
Valued at $9.2 billion in 2023, the American whiskey market is forecasted to grow at a compound annual growth rate of 11.5% to reach $19.8 billion by 2030.1 One factor contributing to this growth is the increasing demand for premium and craft spirits. Consumers are seeking unique and artisanal experiences, driving interest in craft whiskey distilleries. These producers offer a diverse range of flavors and styles, catering to the discerning palate of modern whiskey enthusiasts.
The return of the cocktail culture has also played a significant role in expanding the whiskey market. Whiskey-based cocktails have become increasingly popular among millennials and Gen Z consumers, who value craftsmanship in their drinks. This trend has led to a surge in whiskey consumption across bars, restaurants, and social gatherings, further fueling market growth. In fact, while vodka remains America’s most popular spirit overall, whiskey has become the best-selling spirit category for on-premise consumption in recent years.
And people aren’t just enjoying whiskey drinks in bars and restaurants. The COVID-19 pandemic accelerated certain trends within the whiskey market, including a rise in home bartending and DIY cocktail-making. This has led to increased sales of whiskey for at-home consumption as well. E-commerce platforms and online liquor stores have witnessed a surge in demand, providing consumers with convenient access to a wide selection of whiskey brands and products.
In addition to domestic consumption, the American whiskey market has seen growing demand from international markets. American whiskey, particularly Bourbon and Tennessee whiskey, has gained popularity worldwide, with exports increasing by 40% from 2022 to 2023.2 Its distinctive flavor profiles, rich history, and craftsmanship resonate with consumers seeking premium and unique spirits. Europe and Asia are the largest markets for American whiskey, with countries like the UK, Germany, Japan, and Taiwan leading the charge. This global appeal has opened new opportunities for U.S. distillers to expand their reach and increase sales abroad.
Looking ahead, the premium American whiskey market is forecasted to continue its double-digit growth rate in the coming years. As consumer preferences continue to evolve and the industry adapts to changing dynamics, whiskey producers and investors have ample opportunities to innovate, diversify, and capitalize on the growing demand for America’s favorite spirit.
1,2 American Whiskey Market – Global Industry Analysis, Size, Share, Growth, Trends and Forecast, SAC Insight, 2023
About Spirits Capital
Spirits Capital is a fintech company that merges technology with the alternative asset class of premium American whiskey. Spirits has built a platform that provides investors with a secure and transparent way to capitalize on the growth in value of whiskey while it matures in the barrel. In addition, Spirits has created the Distilled Barrels Financial Exchange (“DBFEX”), a cutting-edge digital platform for the global trading of aged whiskey barrels. Learn more at www.spiritscap.com.