On December 10th, 2024, at a liquor store in Monterrey, Mexico, the seller lifts a bottle of tequila from Diageo, one of the world’s leading spirit makers.
Daniel Beckelil | Reuters
The US spirits industry has maintained its market share leadership over beer and wine for the third year in 2024, even if revenue slips. According to new data released Tuesday, it has maintained a market share leadership over beer and wine for the third consecutive year.
The annual US Economic Report from the Distillation Spirits Council, a major trade agency, shows that sales of US spirits suppliers fell 1.1% last year to a total of $37.2 billion, up 1.1%.
This is the first time that the Spirits category’s revenue has fallen for over 20 years. Despite a return to a more typical purchasing pattern after the pandemic boom, Spirits’ revenues have increased by an average annual rate of 5.1% since 2019. Between 2003 and 2019, the average annual growth rate was 4.4%.
“The spirits industry has proven resilient during tough times, but it is certainly unimmunized by destructive economic power and market challenges, and it was definitely in 2024.”
Tequila and Mezcal were bright spots this year as the only spirit categories showing sales growth, as revenues rose 2.9% to $6.7 billion.
Top 5 Spirit Categories by Revenue in 2024:
Vodka: $7.2 billion (flat from previous year) Tequila/Mezcal: $6.7 billion (up 2.9%) American whiskey: $5.2 billion (down 1.8%) Cordial: $2.8 billion (down 3.6%) cocktails including Spirits RTDS : 3.3 billion dollars (3.3 billion dollars) 16.5%)
Premix ready-made cocktails have grown double digits, but the category includes a variety of mixed spirits, including vodka, lamb, whiskey and cordial.
Mexico’s tariff threat
Mexican spirit and beer have been popular with consumers for over 20 years, with tequila and mezcal sales for the first time in 2023 surpassing American whiskey.
The path ahead of Mexico-based products remains uncertain. The Trump administration delayed the imposition of tariffs on imports from Mexico earlier this month. This involves tariff negotiations for distinctive products such as mezcal and tequila by one month.
Sonat Burnecker Hart, president and founder of Cobal Distillery in Chicago, said: “Many craft distilleries have spent great time, effort and resources expanding into the international market just to see their dreams shattered by tariffs that have nothing to do with our industry.” Hart added.
Swonger also said that tariffs have been a “devastating blow” for distillers, bringing high pressure on the industry’s supply chain as wholesalers and retailers continue to drain stock accumulation and carefully refill products. I pointed out that it’s just to add.
“Consumers were fighting against some of the best prices and interest rates in decades, which put a strain on the wallet and forced many to reduce spending on small luxuries like distillation spirits. “We did,” Swonger said.
“We had a slight immersion in our sales, but consumers continued to choose spirit and enjoyed cocktails with family and friends,” he said.
