Beverage Industry logo
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
Beverage Industry logo
  • NEWS
    • R&D News
    • Supplier News
  • PRODUCTS
    • New Products
    • Reader's Choice Poll
  • CATEGORIES
    • Alternative Drinks
    • Beer
    • Bottled Water
    • Cannabis Beverages
    • Carbonated Soft Drinks
    • Energy Drinks & Shots
    • Juice & Juice Drinks
    • Plant-Based Beverages
    • Sports Drinks
    • Tea and Coffee
    • Wine & Spirits
  • R&D
    • Beverage R&D Features
    • Ingredient Spotlight
  • PACKAGING
    • New Packages
    • Packaging Equipment
    • Packaging Material
  • OPERATIONS
    • Distribution
    • Plant Focus
  • TOP LISTS
    • Beer Market Report
    • Executive of the Year
    • State of the Beverage Industry
    • Top 100 Beverage Companies
    • Truck Report
    • Wholesaler of the Year
  • MEDIA
    • eBook
    • Podcast
    • Polls
    • Videos
    • Webinars
  • DIRECTORIES
    • Annual Manual
    • Contract Packaging Guide
    • Take a Tour
  • MORE
    • Classifieds
    • Channel Strategies
    • eNewsletters
    • Events
      • Membrane Technology Forum
    • Interactive Product Spotlights
    • Market Insights
    • Sponsor Insights
    • Store
    • White Papers
  • EMAG
    • eMagazine
    • Archived Issues
    • Advertise
  • SIGN UP!

2020 State of the Beverage Industry: Consumer preference grows wine, spirits categories

Taste, convenience and pandemic impact alcohol sales

Barefoot wines
(Image courtesy of Barefoot)
Bulleit whiskey
(Image courtesy of Drizly)
Barefoot wines
Bulleit whiskey
June 24, 2020

Swings and shifts impacting the wine and spirits categories are ongoing, with recent trends influenced by preference, packaging, taste and technology. A triple-digit surge in sales off-premise due to the COVID-19 pandemic also is helping to bolster wine and spirits.

Pune, Maharashtra, India-based Global Market Insights (GMI) Research Content Developer Saloni Walimbe said wine consumption in the United States stood at 966.09 million gallons in 2018.

2020 State of the Beverage Industry
Market Segments
• 2020
• All years

Chicago-based Information Resources Inc.’s (IRI) reports that the table wine market grew 6.4 percent and reached $11.2 billion in sales in U.S. multi-outlets and convenience stores for the 52 weeks ending May 17, while sparkling wine/Champagne posted $1.3 billion in sales, a 13.1 percent increase over a year ago.

COVID-19 and a two-month lockdown also has sparked triple-digit growth in alcohol sales through eCommerce, alcohol delivery apps like Drizly and Vivino, and virtual “Happy Hours” and tastings. When comparing dollar sales percentage growth versus a year ago, the overall alcohol category is seeing triple-digit success off-premise. Spirits were up 374 percent, while wine and beer were up 242 percent, respectively, New York-based Nielsen reported in the June issue Beverage Industry.

In that same issue, Nielsen reported that total alcohol sales in aggregate from its in-store retail measurement reported that total alcohol was up 25.5 percent, wine was up 30.1 percent and spirits were up 34.1 percent from March 7 through the week ending May 7 – when COVID-19 was heavily impacting consumer behavior.

Earlier in the year, wine sales were not as robust. In Beverage Industry’s February issue, IRI Client Insights Director Cara Piotrowski noted that wine looked to be softening, evidenced by its 2.2 percent year-over-year dollar growth as of December 2019. However, the current outlook is brighter at a nearly 7 percent increase in sales compared to the prior year, as of May 17, according to IRI’s latest data.

Top spirits

(Individual brands)

  DOLLAR SALES % CHANGE VS. PRIOR YEAR MARKET SHARE % CHANGE VS. PRIOR YEAR
Whiskey $2,913,820,354 15.2 34.77 0.21
Vodka $2,245,543,344 9.7 26.79 -1.18
Rum $672,675,030 7.6 8.03 -0.52
Tequila $662,603,640 25.1 7.91 0.67
Cordials $568,842,001 13.4 6.79 -0.07
Category total* $8,381,021,701 14.5 100 ---

*Includes brands not listed.

Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, gas and convenience stores, mass merchandisers, military commissaries, and select club and dollar retail chains for the 52 weeks ending May 17.

GMI’s Walimbe noted that growth in domestic wine indicates promise for the channel, particularly because recent tariff modifications could impact imported wine.

"Domestic table wines are a fundamental growth driver for the U.S. wine market, with newly imposed tariffs slightly blurring the business outlook of imported wines,” she explained.

Premium wines are trending, according to IRI’s Piotrowski, who noted that luxury table wine priced between $20-$24.99 was the fastest growing segment at 10.2 percent.

Packaging also is influencing consumer purchase patterns within the wine market. Piotrowski noted that wines sold in cans totaled $86.7 million in 2019, a 91.7 percent increase over the prior year.

Another trend impacting wine consumption is off-premise purchasing online and via delivery apps. For instance, Boston-based Drizly reported sales were up 535 percent over their baseline the week of April 19, with new buyer sales up 1,200 percent from the year prior.

The spirits market also shows to be prospering, posting $8.4 billion in sales, an increase of nearly 15 percent compared with the year prior, according to IRI’s data for the 52 weeks ending May 17.

IRI also identified consistent sales growth from each segment for the 52 weeks ending May 17:

  • Whiskey — up 15.2 percent
  • Vodka — up 9.7 percent
  • Rum — up 7.6 percent
  • Tequila — up 25.1 percent
  • Cordials — up 13.4 percent
  • Pre-mixed cocktails — up 45.6 percent
  • Brandy/cognac — up 10.6 percent
  • Non-alcohol mixers — up 15.3 percent
  • Gin — up 12.7 percent

Although vodka maintained favor with consumers in 2019 with 31 percent of market share, whiskey currently holds the No. 1 spot with approximately 34 percent of the market share and $2.9 billion in sales.

Brown spirits outpaced white spirits for the seventh consecutive year in 2019, driven by both domestic and imported whiskies,” said Carolyn Lemoine, director of alcohol research for New York-based Beverage Marketing Corporation (BMC), in Beverage Industry’s April issue.

Top table wines

(Individual brands)

  DOLLAR SALES % CHANGE VS. PRIOR YEAR MARKET SHARE % CHANGE VS. PRIOR YEAR
Barefoot $672,997,168 1.1 5.98 -0.31
Sutter Home $397,602,716 1.4 3.53 -0.17
Franzia $364,897,530 8.4 3.24 -0.06
Woodbridge $364,002,556 4.6 3.24 -0.06
Josh Cellars $279,582,860 35.4 2.49 0.53
Category total* $11,248,497,905 6.4 100 ---

*Includes brands not listed.

Source: Information Resources Inc. (IRI), Chicago. Total U.S. supermarkets, drug stores, gas and convenience stores, mass merchandisers, military commissaries, and select club and dollar retail chains for the 52 weeks ending May 17.

When it comes to what’s driving segment performance, Mintel suggested in Beverage Industry’s April issue that the five-year growth of both on- and off-premise spirits sales was anchored by robust whiskey sales.

"The $67 billion spirits market has shown strong growth during the five-year review prior, and positive growth is forecast through 2024,” stated Chicago-based Mintel’s December 2019 “Dark Spirits – US” report. “Spirits sales growth has outpaced that of the largest alcoholic beverage category, beer, and in 2019, its dollar sales overtook that of wine.

“… American whiskey/bourbon has been a key driving force in dark spirits, which has been trending for the past five years, and is forecast to continue to do so,” it continued. “While brandy, cognac and Armagnac is a smaller segment, it has also enjoyed steady five-year growth, bolstered by innovation and the engagement of women.”

Moving forward, BMC’s Lemoine noted the explosion in ready-to-drink (RTD) cocktails and the segment’s ability to tap into several mega-trends: canned products with low- or no-alcohol.

"RTDs tend to be lighter in alcohol and lower in calories and sugar,” she explained. “RTD cocktails are premiumizing, as consumers look for unique offerings and diversification, classic cocktails with a modern twist that may be spirits, malt or wine based.”

Experts noted that shoppers seeking flavorful offerings across all beverage alcohol categories will continue to drive flavor-forward wine and spirits. Brands that implement digital purchasing options with strategic marketing also could fuel sales for those platforms.

KEYWORDS: eCommerce Ready-to-Drink (RTD) Cocktails red wine State of the Beverage Industry Whiskey white wine

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
to unlock your recommendations.

Already have an account? Sign In

  • top 100 beverage companies

    Top 100 Beverage Companies of 2024

    For the global beverage market, mergers and acquisitions...
    Beverage News
  • Chocolate, Strawberry, Vanilla shakes

    Classic flavors provide reliable, consistent results for beverage-makers

    Classic flavors of chocolate, vanilla and strawberry...
    Ingredient Spotlight
    By: Chloe Alverson
  • Free Spirits Instant Bar Bundle

    Lifestyle trends drive growth for non-alcohol category

    As lifestyle trends continue to drive growth for the...
    Wine & Spirits
    By: Lauren Sabetta
Manage My Account
  • eNewsletters
  • Online Registration
  • Subscription Customer Service
  • eMagazine Subscription
  • Manage My Preferences

More Videos

Sponsored Content

Sponsored Content is a special paid section where industry companies provide high quality, objective, non-commercial content around topics of interest to the Beverage Industry audience. All Sponsored Content is supplied by the advertising company and any opinions expressed in this article are those of the author and not necessarily reflect the views of Beverage Industry or its parent company, BNP Media. Interested in participating in our Sponsored Content section? Contact your local rep!

close
  • Fourpeople toasting with cocktails made with low-sugar ingredients, celebrating healthier drink options.
    Sponsored byCargill

    What’s Hot in Sugar Reduction: Beverages

  • chocolate milk
    Sponsored byCargill

    Sweetening the Future for Dairy and Dairy-Alternative Beverages

  • woman pouring a drink
    Sponsored byFFP

    Building a Beverage System: Meeting Consumer Demand for Precision Wellness

Popular Stories

Sting Energy

PepsiCo, Sting Energy unveil global partnership with Formula 1

top 100 beverage companies

Top 100 Beverage Companies of 2024

people drinking Wynk

Mindful drinking prompts growth for THC beverages

Top 100 Beverage Companies of 2024

Events

April 16, 2025

2025 State of the Industry Series: Alcoholic Beverages

On Demand In Beverage Industry’s annual State of the Industry: The Alcohol Beverage Market, analysts at S&D Insights LLC delve into these trends and how they’re shaping the industry.

June 26, 2025

FAST. FOCUSED. FUELED: Delivering Energy Consumers Can Feel

Learn how to formulate products that deliver the energy experiences that people want, and keep them coming back for more.

View All Submit An Event

Poll

Retail Coffee Segment

What retail coffee segments will fare well into the next year?
View Results Poll Archive

Products

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

Milk and Dairy Foods Nutrition, Processing and Healthy Aging

See More Products

Related Articles

  • Riboli Family Wines

    2022 State of the Beverage Industry | Premium, health and wellness lifting wine, spirits categories

    See More
  • Stillhouse Black Bourbon - Bonterra Rose - Beverage Industry

    2018 State of the Beverage Industry: Premium offerings continue to drive wine, spirits markets

    See More
  • E. & J. Gallo Winery

    2023 State of the Beverage Industry | Shifting the balance in wine, spirits

    See More
×

Elevate your expertise in the beverage marketplace with unparalleled insights and connections.

Join thousands of beverage professionals today. Shouldn’t you know what they know?

JOIN NOW!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletter
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing