American Whiskey Market Size, Share, Forecast, & Trends Analysis by Product Type (Bourbon Whiskey, Tennessee Whiskey, Rye Whiskey), Product Quality (Value, Premium, High-end Premium), Distribution Channel (On-trade, Off-trade) - Global Forecast to 2031

The American Whiskey Market was valued at $13.71 billion in 2023. This market is expected to reach $29.38 billion by 2031 from an estimated $14.95 billion in 2024, at a CAGR of 10.1% during the forecast period from 2024 to 2031.

American Whiskey Market Size & Forecast

The growth of this market is driven by increasing demand from millennials for premium American whiskies, the expansion of super-premium and ultra-premium whisky brands, rapid global urbanization, and the rising popularity of whiskey-based cocktails and mixology. However, the emergence and increasing popularity of innovative non-alcoholic beverages are expected to restrain the growth of this market.

Emerging economies in Latin America, Asia, and the Middle East & Africa are projected to generate significant market growth opportunities. Conversely, stringent government regulations, shifts in consumer preferences, and the threat of substitutes pose substantial challenges for market participants. Prominent trends in the American whiskey market include marketing strategy & promotions and new product launches and rising export of American whiskey.

Click here to: Get a Free Sample Copy of this report

American Whiskey Market Growth Drivers

Increasing Demand for Premium American Whiskies Among Millennials

The rising demand for premium whiskies among millennials is profoundly influencing the American whiskey market. This trend is further enhanced by the introduction of new flavors and innovative whiskey expressions. There is a growing appetite for American whiskies, including Bourbon, Tennessee whiskey, and Rye, both domestically and internationally. Consumers are increasingly seeking a diverse array of premium options, driving interest in American whiskies.

The millennial group is vital in driving innovation and premiumization within the market. This demographic emphasizes quality over quantity, actively seeking premium whiskies that showcase superior craftsmanship and authenticity. They are also more inclined to invest in premium products that deliver unique experiences, exclusivity, and a sense of luxury. Brands that offer limited-edition releases or single-cask bottlings particularly resonate with this audience.

Furthermore, the American whiskey industry is undergoing substantial innovation, with distillers launching new flavors and experimenting with diverse production techniques to meet changing consumer preferences. These advancements are designed to attract younger generations, including millennials and Gen Z, who are enthusiastic about exploring unique flavor profiles and novel drinking experiences.

Growing Popularity of Whiskey-based Cocktails in Mixology

Today, consumers are increasingly embracing cocktail culture, leading to a resurgence of classic whiskey drinks like the Manhattan, Old Fashioned, and Whiskey Sour in bars and restaurants. This revival is attracting a new generation of whiskey drinkers who appreciate the rich, bold flavors of American whiskey, especially when paired with modern, inventive ingredients. Whiskey’s versatility as a cocktail base allows for a wide range of flavor profiles, making it appealing to both traditional enthusiasts and newcomers to the spirit.

Furthermore, the rise of mixology as a craft significantly enhances the demand for premium American whiskey. Mixologists, who emphasize creativity and precision, favor high-quality whiskeys with unique characteristics to elevate their cocktail creations. The diverse flavor spectrum of American whiskeys—ranging from smooth, sweet bourbons to robust, spicy ryes—makes them ideal for experimentation in the cocktail realm. This increasing interest in craft cocktails and the role of whiskey within them has prompted consumers to seek more premium and artisanal American whiskey options, further driving the sustained growth of this spirit in the global market.

American Whiskey Market Trends

Marketing Strategies, Promotions, and Product Launches

Companies are implementing innovative strategies to promote their products and address market competition by enhancing brand recognition, provenance, product quality, and packaging. They are driving sales by adopting new marketing tactics and launching campaigns to raise awareness of their offerings. For example, in September 2023, Jack Daniel’s introduced Jack Daniel’s Bonded Rye Whiskey, the latest addition to its bonded series, which highlights the distillery's commitment to whiskey-making excellence and innovation.

Brown-Forman, a key player in the market, has implemented a strategy aimed at educating bar staff and consumers about the American whiskey segment. In the U.K., the company launched the campaign "Welcome to the World of American Whiskey: The Story of Man and Oak" in 2015. Brown-Forman is focused on maximizing American whiskey sales by balancing styles and flavors. Additionally, the company introduced three new flavor profiles—laid-back and mellow, full and spicy, and big and bold—to attract a broader consumer base for American whiskey.

Jim Beam is leveraging an innovative marketing strategy by implementing a three-dimensional (3D) sound program for on-premise sampling and trials in the U.S. This interactive experience utilizes audio content to provide consumers with a unique experience of making and enjoying the new Jim Beam Apple and Soda cocktail, enhanced by depth and dimensional effects. To strengthen their consumer base and address the growing market demands, companies are expanding their product offerings by launching new products.

American Whiskey Market Opportunity

Emerging Economies in Latin America, Asia, and the Middle East & Africa

The rising demand for American whiskey in emerging economies, particularly in Latin America, Asia, and the Middle East & Africa, is driving growth in the American whiskey market. These regions present significant potential for future expansion, supported by the emergence of supermarkets and hypermarkets. Additionally, factors such as a growing appetite for premium and imported spirits—including American whiskey—a shift towards premiumization, increased interest in whiskey culture, and the expansion of cocktail and bar culture are further fueling the growth of the American whiskey market in these areas.

According to Research Papers in Economics, the supermarket revolution in China is advancing at an unprecedented pace, with supermarket sales growing by 30–40% annually—2 to 3 times faster than in other developing countries. For example, in 2021, Alibaba announced plans to open 2,000 Hema supermarket stores by 2023. This proliferation of supermarkets is anticipated to bolster demand for American whiskey in these regions.

Moreover, rising urbanization, the increasing adoption of flexible payment and delivery models, and changing consumer lifestyles in these developing economies present significant growth potential. With consumers experiencing increased spending power, American whiskey manufacturers are seeing robust demand from these markets. Collectively, these factors are expected to create substantial growth opportunities for players operating in this sector.

American Whiskey Market Analysis: Key Findings

The Bourbon Whiskey Segment to Dominate the American Whiskey Market in 2024

Based on product type, the American whiskey market is segmented into bourbon whiskey, Tennessee, whiskey, and rye whiskey. In 2024, the bourbon whiskey segment is expected to account for the largest share of 69% of the American whiskey market. The large market share of this segment is primarily attributed to innovation and new product launches, robust growth in international markets, premiumization, and the rise of craft distilleries. Additionally, the increasing consumer interest in premium spirits and a growing appreciation for American whiskey globally are also driving the growth of this segment.

However, the rye whiskey segment is expected to register the highest CAGR of 9% during the forecast period. This segment's growth is fueled by changing consumer preferences towards better-tasting, higher-quality whiskies, and an increased appreciation for traditional and craft distilling techniques. Furthermore, the versatility of rye whiskey in mixology and cocktails has enhanced its appeal among mixologists and bartenders.

The Super-premium Segment to Dominate the American Whiskey Market in 2024

Based on product quality, the American whiskey market is segmented into value, premium, high-end premium, and super-premium. In 2024, the super-premium segment is expected to account for the largest share of the American whiskey market. The large market share of this segment is primarily driven by growing consumer demand for high-quality, luxury whiskey, an uptick in spending on rare, small-batch, and limited-edition offerings, and a preference for more premium alcoholic beverages.

However, the premium segment is expected to register the highest CAGR during the forecast period. This segment's growth is driven by the increasing consumer sophistication and desire for high-quality, crafted spirits and balance between quality and affordability.

The On-trade Segment to Witness High Demand During the Forecast Period

Based on distribution channel, the American whiskey market is segmented into off-trade and on-trade. In 2024, the off-trade segment is expected to account for a larger share of 57.5% of the American whiskey market. The off-trade segment includes retail outlets such as supermarkets and hypermarkets, convenience stores, specialty stores, and various distribution channels. Its substantial market share is primarily attributed to its extensive reach and convenience. Consumers often assess product quality, ingredients, and brand before making a purchase, making off-trade channels key drivers of product sales.

However, the on-trade segment is expected to register the highest CAGR during the forecast period. The rapid growth of this segment is primarily driven by the increasing number of bars, restaurants, pubs, and clubs offering a diverse selection of beverages. The expanding cocktail culture in these establishments further supports this segment's growth.

Geographical Analysis

North America Dominates the American Whiskey Market

Based on geography, the American whiskey market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of 68.6% of the American whiskey market, followed by Europe, Asia-Pacific, Latin America, and the Middle East & Africa. The North America American whiskey market is estimated to be worth USD 10,256.4 million in 2024. North America's large market share is driven by several key factors, including a well-established alcoholic beverages market, the growing popularity of cocktails, rapid innovation and development within the sector, increased investment in production capacity, and a surging demand for whiskey from the food service industry in the region.

However, Asia-Pacific is expected to record the highest CAGR during the forecast period. This growth is attributed to the rising demand for premium barrel-aged whiskey, favorable trade policies, and an increasing preference for the highball—a mix of whiskey and soda served over ice. Moreover, growing consumption in developing countries such as China and India is further boosts the growth of this regional market.

American Whiskey Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the American whiskey market are Brown-Forman Corporation (U.S.), Diageo plc (U.K.), Davide Campari-Milano N.V. (Italy), Kirin Holdings Company, Limited (Japan), Suntory Global Spirits Inc. (U.S.), Castle Brands (U.S.), Tuthilltown Spirits Distillery (U.S.), Luxco, Inc. (U.S.), Heaven Hill Brands (U.S.), and Sazerac Company, Inc. (U.S.).

American Whiskey Industry Overview: Latest Developments from Key Industry Players

• In November 2022, Diageo acquired Balcones Distilling in the U.S., gaining access to high-growth brands in rapidly expanding segments, particularly in the super-premium whiskey category.
• In October 2022, Knob Creek Bourbon, a brand of Suntory Global Spirits, launched a limited-edition 18-Year-Old Bourbon. This offering provides a complex and well-balanced flavor profile, attributed to its mature age.
• In June 2022, Brown-Forman and The Coca-Cola Company announced a global partnership to launch the Jack Daniel’s Tennessee Whiskey and Coca-Cola Ready-to-Drink Cocktail.

American Whiskey Market Research Summary

Key questions answered in the american whiskey market report: