All major alcoholic drinks categories – beer, wine, cider, spirits and ready-to-drink (RTDs) saw growth in the premium segment in the United States last year, new data from IWSR Drinks Market Analysis has shown.
According to IWSR, while total volumes for wine (-2%), beer (-2%) and cider (-4%) all reported a drop in volume, the premium-and-above tiers of each segment saw growth – wine was up 6%, beer up 4% and cider up 11%.
In terms of spirits, total category volumes rose by 2%, with premium-and-above sales rising 13%, while in the RTDs category, total volumes were up 1%, with premium-and-above products rising 38%.
Impact Of Economic Uncertainty
“Economic uncertainty continued throughout 2022, ranging from inflation to talks of a recession to supply chain instability,” said Brandy Rand, chief strategy officer, IWSR Drinks Market Analysis. “Despite this, a recent IWSR consumer price sensitivity survey shows Americans feel confident about their finances at a personal level.”
According to IWSR, despite industry-wide price increases, the premiumisation trend is still driving all segments within alcoholic beverages, particularly in spirits – one third (33%) of US consumers said that they spent $50 or more on a bottle of alcohol in 2022, compared to 24% in 2021.
In addition, six in ten online shoppers say they spend more on alcohol online than they do in store.
Premiumisation At Home
“Another area where premiumisation is proving to be a key factor driving volume is at-home consumption,” Rand added.
“With a vast majority of Americans consuming alcohol at home, 46% say they are likely to treat themselves to better quality drinks there, which is also beneficial for wine and beer.”
© 2023 European Supermarket Magazine – your source for the latest drinks news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
