For the First Time, Gin and Other Distilled Spirits Overtake Beer’s US Market Share

A win for gin — and other distilled spirits! Hard liquor has surpassed beer’s market share in the U.S. for the very first time. (Photo: Chris F/Pexels)

According to the Distilled Spirits Council of the United States (DISCUS), distilled spirits like gin, vodka and tequila have surpassed beer’s market share in the U.S. for the first time.

Driven by ongoing consumer interest in premium spirits, the distilled spirits sector has achieved record market share and sales. In 2022, spirit supplier sales were reported up by 5.1%, totaling $37.6 billion in revenue.

According to the data compiled by DISCUS, the market share for beer was 41.9%, while distilled spirits’ was 42.1%.

“Despite the tough economy, consumers continued to enjoy premium spirits and fine cocktails in 2022,” said DISCUS President and CEO Chris Swonger. “Cocktail culture continues to thrive in the United States supporting jobs in the distilling, hospitality and agriculture sectors.”

Commenting on the market share gains, Swonger said: “Year after year, the spirits sector has slowly gained market share by staying focused on our consumers, delivering innovative, high-end products, and advocating to level the playing field for spirits, beer and wine products in the marketplace and legislative arena.”

“As DISCUS celebrates its 50th anniversary, spirits taking the lead in revenue share represents a historic milestone for all leaders in the spirits industry, past and present, to toast.”

Other factors in the distilled spirits market share gain include a continued interest in premium spirits such as tequila, mezcal and whiskey and a growing interest in spirits tourism. Research determined that distillery tourism generated $417.8 million in California, $546.4 million in New York and $715.2 million in Texas.

Vodka was noted as the top spirits category by revenue, totaling $7.2 billion last year. Ready-to-drink products were classified as the fastest-growing category with a 35.8% revenue growth, or “$588 million to $2.2 billion,” DISCUS reported.

In October 2022, it was predicted that the gin market alone is set to grow by $6.68 Billion during the forecast period of 2021-2026, according to a study conducted by global market research firm, Technavio. Interest in premium spirits and the popularization of online liquor sales were cited as factors in the gin market’s growth.

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