USA Alcohol Ingredients Market is evaluated at US$1.856 billion for the year 2020 growing at a CAGR of 1.99% reaching the market size of US$2.130 billion by the year 2027.
The majority of U.S. adults consume alcoholic beverages. As per USDA ERS reports, the constant food and alcohol expenditures, without taxes and tips, for all purchasers updated in June 2020, a total sale in the order of $ 59634.38 million, which pertains to alcohol at home (AAH) was registered during 2019 - an increase from $ 58,922.04 million that was registered during 2018. Included in total sales of 2019, among others, were the sales registered by liquor stores which were to the tune of $ 28,433.27 million - an increase from $ 28,025.79 registered during the previous year. Moreover, also included, among others, was the amount of $ 16,247.24 million that pertains to sales of alcohol at food stores - an increase from $ 16,060.63 registered during 2018. Further, as far as sales related to Alcohol away from home (AAFH), the total amount registered during 2019 was $ 35,624.71 million – an increase from $ 34,862.23 million registered in 2018. Included within the figure for 2019 are, among others, the sales registered at eating and drinking places that were to the tune of $ 28,555.67 million – an increase from $ 28,097.65 million registered in 2018 and the sales amounting to $ 3,302.81 million registered at hotels and motels – an increase from $ 3,214.28 million. The evident increase in sales suggests the excellent potential for the USA Alcohol ingredients market growth during the forecast period.
Nevertheless, nearly half of current drinkers across most age categories report past-month binge drinking, and alcohol consumption accounts for approximately 100,000 deaths annually in the United States. Of all alcohol-attributable deaths, approximately 88,000 are accounted for by excessive drinking; more than twice the number of deaths from excessive drinking occurs among men compared to women. Moreover, an annual cost of $224 billion is incurred by the United States due to excessive alcohol consumption, or approximately $750 per adult annually, or $2 per drink sold. These costs are based on costs to the legal and criminal justice systems, lost productivity, and medically-related costs [ Source: USDA]. Therefore, these ramifications of alcohol consumption, and growing awareness of health, have led consumers towards alcohol-free analogues like alcohol-free beer. Further, the health consciousness is expected to augment due to the need for maintaining immunity during the COVID-19 pandemic ad beyond. Therefore, the aforementioned factors are, in a certain manner, expected to hinder the growth of the USA alcohol ingredient market. Nevertheless, with the demand for low alcoholic beverages, the growing trend of premiumization of spirits as well as wines, and above all, interest in local products, which have been facilitated by travel restrictions and lockdown measures brought about by COVID-19, is expected to drive the USA alcohol ingredient market growth to unprecedented heights during the forecast period.
Key Development
Impact of COVID-19
The U.S.A. alcoholic beverages market was significantly hit by the arrival of COVID-19, owing to the shutdown of speciality stores, pubs, bars, and restaurants. The ease of lockdown measures had encouraged merchants to gain confidence in the mid-2020s, but a sharp spike in pricing was recorded in some nations, primarily owing to government rules and taxes, influencing the market slightly. Furthermore, organisations are seeing a greater increase in off sales than on sales. For example, in February 2020, Constellations Brands' beer volume increased by approximately 30% in the off-premise channel in the United States, as customers avoided going on-premise to avoid the growth of COVID-19. Moreover, during the epidemic, demand for hard beverages like whiskey and gin skyrocketed, while volume sales of items like beer increased. One of the pushing variables for the market to survive during the pandemic has been in-house consumption, combined with brand stocking.
Segmentation