Spirits - NAFTA

The Spirits market in NAFTA has been experiencing steady growth in recent years. Customer preferences for premium and craft spirits, as well as the increasing popularity of cocktails, have contributed to this trend. Additionally, local special circumstances and underlying macroeconomic factors have played a role in shaping the market. Customer preferences in the NAFTA Spirits market have shifted towards premium and craft spirits. Consumers are increasingly willing to spend more on high-quality spirits, seeking unique and artisanal products. This trend is driven by a growing interest in exploring new flavors and experiences. Craft distilleries have emerged to cater to this demand, offering small-batch, handcrafted spirits that appeal to discerning consumers. The rise of cocktail culture has also influenced customer preferences, with consumers seeking spirits that are versatile and can be used in a variety of cocktails. Trends in the NAFTA Spirits market include the rise of flavored spirits and the growing popularity of whiskey. Flavored spirits, such as flavored vodkas and rums, have gained traction among consumers looking for innovative and exciting options. These products offer a twist on traditional spirits, appealing to a younger demographic. Whiskey, particularly bourbon and Canadian whiskey, has experienced significant growth in recent years. This can be attributed to the increasing appreciation for aged spirits and the rise of whiskey-based cocktails. Local special circumstances in the NAFTA region have also shaped the Spirits market. In the United States, for example, the popularity of craft spirits has been supported by favorable regulations that allow distilleries to operate more easily and sell their products directly to consumers. This has encouraged the growth of small-scale distilleries and contributed to the overall expansion of the market. In Canada, the Spirits market has been influenced by the country's rich whisky heritage, with Canadian whiskey being a prominent player in the market. Underlying macroeconomic factors have also played a role in the development of the NAFTA Spirits market. Economic growth and rising disposable incomes have increased consumers' purchasing power, allowing them to spend more on premium spirits. Additionally, changing demographics, such as the increasing number of millennials entering the legal drinking age, have contributed to the growth of the market. Millennials are known for their interest in unique and authentic products, making them a key target demographic for premium and craft spirits. In conclusion, the Spirits market in NAFTA is experiencing growth driven by customer preferences for premium and craft spirits, as well as the popularity of cocktails. Flavored spirits and whiskey have emerged as key trends in the market. Local special circumstances, such as favorable regulations and whisky heritage, have also influenced the market. Underlying macroeconomic factors, including economic growth and changing demographics, have contributed to the overall development of the market.

Data coverage:
The data encompasses B2C enterprises. The at-home market covers retail sales via super- and hypermarkets, eCommerce, convenience stores, or similar sales channels. The out-of-home data encompasses all sales to hotels, restaurants, catering, cafés, bars, and similar hospitality service establishments. Combined numbers encompass both the at-home market and the out-of-home market. Both the at-home and the out-of-home market are valued at retail selling prices including all sales and consumption taxes.

Modeling approach:
Market sizes are determined through a Top-Down approach, building on specific predefined factors for each market segment. As a basis for evaluating markets, we use resources from the Statista platform as well as in-house market research, national statistical offices, international institutions, trade associations, companies, the trade press, and the experience of our analysts. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, consumer spending (e.g. consumer spending on alcoholic beverages, consumer spending at Hotels, Restaurants etc.), and price level index. This data helps us estimate the market size for each country individually.

Forecasts:
In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing is well suited for forecasting the Alcoholic Drinks market with a projected steady growth. The main drivers are GDP per capita and consumer spending per capita.

Additional notes:
The data is modeled using current exchange rates. The impact of the COVID-19 pandemic and the Russia-Ukraine war are considered at a country-specific level.