This report provides the results for the Spirits market in the US from Canadean's unique, highly detailed study of consumers' Consumer Packaged Goods (CPG) consumption habits, and forms part of an overall series covering all CPG product markets. Its coverage includes, but is not limited to, consumption behaviors, the extent to which consumer trends influence their consumption, the value of the market these trends influence, and brand and private label choices as well as retailer choices. Much of this information can also be analyzed by specific consumer groups, providing hard and fast data on consumers and markets at the product category level.
Introduction and Landscape
Why was the report written?
Marketers in the Spirits market face a major challenge. Understanding market size and segmentation is valuable, but the key to effective targeting is knowing just how valuable specific consumer groups are, and being able to quantify the impact of consumer trends. This data report solves these problems by providing survey-based data on consumer trends and consumer groups, and market data that shows the exact size of consumer groups, how much of the Spirits market they account for, and which consumer trends drive their behavior.
What is the current market landscape and what is changing?
As consumer confidence increases with the economic recovery, consumer trends will be directly affected. Since the global financial crisis of 2008-2009 the retail market has been characterized by an increase in the amount of discounted and own-brand products. Brandy, Whiskey, Rum, Gin and Genever, Vodka, Tequila and Mezcal, Specialty Spirits, and Liqueurs are not considered essential items and therefore consumption patterns have been negatively affected. As economic and market recovery continues over 2012, consumption patterns will record a positive trend in both the medium and heavy frequency bands and the amount of non-users should decrease.
What are the key drivers behind recent market changes?
Consumers' uptake of products and the influence of consumer trends are fundamental causes of change in markets - making knowing what these trends are and the extent of their influence crucial. The survey-based data provided in this report examines over 20 consumer trends that affect the market and examines the share of consumption across 26 consumer groups. This data provides a detailed insight into exactly who the consumer is and just how much impact the latest consumer trends are having.
What makes this report unique and essential to read?
The data provided is unique in the market as it tracks consumer behavior through to its actual value impact on a product market. This provides readers with a unique data analysis of the market, allowing marketing tactics and strategy to be updated in line with the very latest consumer behaviors.
Key Features and Benefits
- Consumer data, based upon proprietary surveys and then consumer group tracking and modeling for the following specific categories: Brandy, Whiskey, Rum, Gin and Genever, Vodka, Tequila and Mezcal, Specialty Spirits, andLiqueurs.
- Detailed consumer segmentation covering over 26 consumer groups, 20 consumer trends, and consumption frequency for each product category.
- Consumer penetration for brands and private labels, based upon the original survey and then subsequent consumer tracking and modeling.
- Unique retailer choice data at the product category level, based upon the original survey and then subsequent consumer tracking and modeling.
Key Market Issues
- Consumer segmentation based on Wealth groups shows that the Affluent group accounts for the largest share in the Spirits market in the US followed by the Moderate income group. This suggests premium products have a large market in the US.
- Brandy consumption in the US is highest among younger consumers, with consumption frequency declining as consumers get older. This suggests that as consumers transition into older age groups they are replacing their Brandy consumption with other Spirits such as Whiskey.
- Retailer analysis reveals that speciality stores selling Spirits account for over 70% of Spirits sales by volume. As such, Spirits producers should adapt their distribution strategies to focus on small, independent retailers.
- Whiskey and Vodka are the largest selling spirits in the US in value terms. Rum is the third largest segment followed by liqueurs. The rest of the categories account for less than 10% of the market.
- Brand analysis reveals that private label penetration by volume in the spirits market in the US is less than 5% for all categories, indicating strong brands and high market concentration for global Spirits manufacturers.
- Behavioural trend analysis reveals Indulgence and Individualism are significant trends driving US consumers' choice of Spirits and, as such, producers and suppliers of Spirits should consider how their products provide a sense of luxury and status to consumers.