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U.S. - Spirits, Liqueurs And Other Spirituous Beverages - Market Analysis, Forecast, Size, Trends and Insights
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Article Publishing Date: Aug 24, 2021

European Trade War Hits American Spirits Exports

IndexBox has just published a new report: 'U.S. - Spirits, Liqueurs And Other Spirituous Beverages - Market Analysis, Forecast, Size, Trends and Insights'. Here is a summary of the report's key findings.

The establishment of duties on alcohol trade between the U.S. and the EU has led to a sharp drop in the export of American spirits. A further increase in the EU import duty on US whiskey may facilitate this decline. Alcohol imports from the EU to the American market also dropped, but this was compensated by increasing purchases from Mexico. The temporary suspension of duties on alcohol should help boost the U.S.-EU trade. The key trends in the American spirits and liquor market include the growing popularity of ready-to-drink beverages and the increasing demand for luxury spirits and alcohol, as well as beer and flavored malt beverages.

Key Trends and Insights

Exports in spirits from the U.S. dropped significantly from $2.1B in 2018 to $1.9B in 2020 due to a decrease in demand for American alcohol to Europe after the EU introduced customs duties on U.S. spirits. From 1997 to June 2018, there were no customs duties on alcohol between the U.S. and the EU. In June 2018, the EU set a 25% import duty on American whiskey, and in 2020 it was expanded to include rum, brandy, vodka and vermouth from America.

Establishing duties led to a 53% drop in the supply of American whiskey in the UK and a 38% drop in the EU, compared to 2018 levels. Exports of American whiskey in 2020 were $845M, down 28.9% from 2018 levels. European countries account for 52% of total US whiskey exports.

A further decline in whiskey exports from the U.S. is forecasted for the coming years as a result of higher European trade tariffs. In June 2021, the EU raised the import duty on American whiskey from 25% to 50%. It’s expected that the total volume of shipments of American alcohol abroad will continue to fall, as in monetary terms, the share of shipments of whiskey accounts for about 44% of total exports of spirits from the U.S.

The import of spirits from the EU to the U.S. dropped significantly after the U.S. established retaliatory trade duties. In 2019, the U.S. imposed a 25% import duty on single malt Scotch whiskey from the EU, single malt Irish whiskey from Northern Ireland, as well as liqueurs from Germany, Ireland, Italy, Spain and the United Kingdom. As a result, imports of Scotch whiskey into the U.S. fell by 37% y-o-y in 2020, while shipments of liqueurs and cordials fell by 40% y-o-y. In 2021, cognac from the EU and other grape-based brandies from France and Germany were added to this list.

Despite the decline in EU supplies, total American alcohol imports rose thanks to a 17% y-o-y increase in purchases from Mexico. The total volume of alcohol imports in the U.S. increased from 824K tonnes in 2019 to 938K tonnes in 2020.

In March 2021, the U.S. and the EU agreed to a 4-month reciprocal suspension of trade tariffs on alcohol and spirits, excluding American whiskey, which should bolster trade between the two.

Among trends in the American market for spirits this year, the rapidly growing popularity of ready-to-drink beverages (often called RTD), an increase in the demand for beer, flavored malt beverages and high-end alcohol stand out. A rise in the number of direct-to-consumer shipments from in-state distilleries, aided by the development of e-commerce and new laws permitting such trade can also be observed.

Spirits and Liqueur Production in the U.S.

Spirits and liqueurs production in the U.S. rose to 1.9M tonnes in 2020, surging by 4.8% against the year before. The total output volume increased at an average annual rate of +4.5% over the period from 2018 to 2020. 

In value terms, spirits and liqueurs production expanded modestly to $14.4B in 2020. The total output value increased at an average annual rate of +4.5% from 2018 to 2020.

Spirits and Liqueur Exports from the U.S.

After two years of growth, shipments abroad of spirits, liqueurs and other spirituous beverages decreased by -10.3% to 272K tonnes in 2020. In value terms, spirits and liqueurs exports contracted modestly to $1.9B (IndexBox estimates) in 2020. 

Panama (53K tonnes) was the main destination for spirits and liqueurs exports from the U.S., with a 19% share of total exports. Moreover, spirits and liqueurs exports to Panama exceeded the volume sent to the second major destination, Australia (26K tonnes), twofold. Spain (25K tonnes) ranked third in terms of total exports with a 9.2% share.

In value terms, the largest markets for spirits and liqueurs exported from the U.S. were Panama ($361M), Canada ($325M) and the Netherlands ($169M), with a combined 44% share of total exports.

The average spirits and liqueurs export price stood at $7,102 per tonne in 2020, with an increase of 7.4% against the previous year. In 2020, the most notable rate of growth in terms of prices was recorded for supplies to Panama, while the prices for the other major destinations experienced more modest paces of growth.

Spirits and Liqueur Imports into the U.S.

Spirits and liqueurs imports into the U.S. expanded significantly to 938K tonnes in 2020, growing by 14% against the year before. The total import volume increased at an average annual rate of +12.5% from 2018 to 2020.

In value terms, spirits and liqueurs imports expanded sharply to $8.9B (IndexBox estimates) in 2020. The total import value increased at an average annual rate of +10.4% from 2018 to 2020.

Mexico (208K tonnes), Canada (158K tonnes) and France (115K tonnes) were the main suppliers of spirits and liqueurs imports to the U.S., together comprising 51% of total imports. These countries were followed by the UK, the Netherlands, Latvia, Ireland, Sweden, Poland and Italy, which together accounted for a further 38%.

In value terms, the largest spirits and liqueurs suppliers to the U.S. were Mexico ($2.7B), France ($2.5B) and the UK ($1.4B), together comprising 75% of total imports. Ireland, Canada, the Netherlands, Sweden, Latvia, Italy and Poland lagged somewhat behind, together accounting for a further 21%.

The average spirits and liqueurs import price stood at $9,492 per tonne in 2020, waning by -2.6% against the previous year. In 2020, the most notable rate of growth in terms of prices was attained by Mexico, while the prices for the other major suppliers experienced more modest paces of growth.

Source: IndexBox Platform

Product coverage:
• Prodcom 11011020 - Spirits obtained from distilled grape wine or grape marc (important: excluding alcohol duty)
• Prodcom 11011030 - Whisky (important: excluding alcohol duty)
• Prodcom 11011040 - Rum and other spirits obtained by distilling fermented sugarcane products (important: excluding alcohol duty)
• Prodcom 11011050 - Gin and geneva (important: excluding alcohol duty)
• Prodcom 11011063 - Vodka of an alcoholic strength by volume of . .45,4 % (important: excluding alcohol duty)
• Prodcom 11011065 - Spirits distilled from fruit (excluding liqueurs, gin, geneva, g rape wine or grape marc (important: excluding alcohol duty))
• Prodcom 11011070 - Pure alcohols (important: excluding alcohol duty)
• Prodcom 11011080 - Spirits, liqueurs and other spirituous beverages (excluding spirits distilled from grape wine, grape marc or fruit/whisky, r um, tafia, gin and geneva, spirits distilled from fruit)

This report provides an in-depth analysis of the spirits and liqueurs market in the U.S.. Within it, you will discover the latest data on market trends and opportunities by country, consumption, production and price developments, as well as the global trade (imports and exports). The forecast exhibits the market prospects through 2025.


Country coverage:
• USA

Data coverage:
• Market volume and value
• Per Capita consumption
• Forecast of the market dynamics in the medium term
• Trade (exports and imports) in the U.S.
• Export and import prices
• Market trends, drivers and restraints
• Key market players and their profiles

Reasons to buy this report:
• Take advantage of the latest data
• Find deeper insights into current market developments
• Discover vital success factors affecting the market
This report is designed for manufacturers, distributors, importers, and wholesalers, as well as for investors, consultants and advisors.

In this report, you can find information that helps you to make informed decisions on the following issues:
1. How to diversify your business and benefit from new market opportunities
2. How to load your idle production capacity
3. How to boost your sales on overseas markets
4. How to increase your profit margins
5. How to make your supply chain more sustainable
6. How to reduce your production and supply chain costs
7. How to outsource production to other countries
8. How to prepare your business for global expansion
While doing this research, we combine the accumulated expertise of our analysts and the capabilities of artificial intelligence. The AI-based platform, developed by our data scientists, constitutes the key working tool for business analysts, empowering them to discover deep insights and ideas from the marketing data.
1. INTRODUCTION

Making Data-Driven Decisions to Grow Your Business

1.1
REPORT DESCRIPTION
1.2
RESEARCH METHODOLOGY AND AI PLATFORM
1.3
DATA-DRIVEN DECISIONS FOR YOUR BUSINESS
1.4
GLOSSARY AND SPECIFIC TERMS
2. EXECUTIVE SUMMARY

A Quick Overview of Market Performance

2.1
KEY FINDINGS
2.2
MARKET TRENDS
3. MARKET OVERVIEW

Understanding the Current State of The Market and Its Prospects

3.1
MARKET SIZE
3.2
MARKET STRUCTURE
3.3
TRADE BALANCE
3.4
PER CAPITA CONSUMPTION
3.5
MARKET FORECAST TO 2030
4. MOST PROMISING PRODUCTS

Finding New Products to Diversify Your Business

4.1
TOP PRODUCTS TO DIVERSIFY YOUR BUSINESS
4.2
BEST-SELLING PRODUCTS
4.3
MOST CONSUMED PRODUCT
4.4
MOST TRADED PRODUCT
4.5
MOST PROFITABLE PRODUCT FOR EXPORT
5. MOST PROMISING SUPPLYING COUNTRIES

Choosing the Best Countries to Establish Your Sustainable Supply Chain

5.1
TOP COUNTRIES TO SOURCE YOUR PRODUCT
5.2
TOP PRODUCING COUNTRIES
5.3
TOP EXPORTING COUNTRIES
5.4
LOW-COST EXPORTING COUNTRIES
6. MOST PROMISING OVERSEAS MARKETS

Choosing the Best Countries to Boost Your Exports

6.1
TOP OVERSEAS MARKETS FOR EXPORTING YOUR PRODUCT
6.2
TOP CONSUMING MARKETS
6.3
UNSATURATED MARKETS
6.4
TOP IMPORTING MARKETS
6.5
MOST PROFITABLE MARKETS
7. PRODUCTION

The Latest Trends and Insights into The Industry

7.1
PRODUCTION VOLUME AND VALUE
8. IMPORTS

The Largest Import Supplying Countries

8.1
IMPORTS FROM 2007–2020
8.2
IMPORTS BY COUNTRY
8.3
IMPORT PRICES BY COUNTRY
9. EXPORTS

The Largest Destinations for Exports

9.1
EXPORTS FROM 2007–2020
9.2
EXPORTS BY COUNTRY
9.3
EXPORT PRICES BY COUNTRY
10. PROFILES OF MAJOR PRODUCERS

The Largest Producers on The Market and Their Profiles

LIST OF TABLES
Table 1:
Key Findings In 2020
Table 2:
Market Volume, In Physical Terms, 2007–2020
Table 3:
Market Value, 2007–2020
Table 4:
Per Capita Consumption In 2007-2020
Table 5:
Imports, In Physical Terms, By Country, 2007–2020
Table 6:
Imports, In Value Terms, By Country, 2007–2020
Table 7:
Import Prices, By Country Of Origin, 2007–2020
Table 8:
Exports, In Physical Terms, By Country, 2007–2020
Table 9:
Exports, In Value Terms, By Country, 2007–2020
Table 10:
Export Prices, By Country Of Destination, 2007–2020
LIST OF FIGURES
Figure 1:
Market Volume, In Physical Terms, 2007–2020
Figure 2:
Market Value, 2007–2020
Figure 3:
Market Structure – Domestic Supply vs. Imports, In Physical Terms, 2007-2020
Figure 4:
Market Structure – Domestic Supply vs. Imports, In Value Terms, 2007-2020
Figure 5:
Trade Balance, In Physical Terms, 2007-2020
Figure 6:
Trade Balance, In Value Terms, 2007-2020
Figure 7:
Per Capita Consumption, 2007-2020
Figure 8:
Market Forecast To 2025
Figure 9:
Products: Market Size And Growth, By Type
Figure 10:
Products: Average Per Capita Consumption, By Type
Figure 11:
Products: Exports And Growth, By Type
Figure 12:
Products: Export Prices And Growth, By Type
Figure 13:
Production Volume And Growth
Figure 14:
Exports And Growth
Figure 15:
Export Prices And Growth
Figure 16:
Market Size And Growth
Figure 17:
Per Capita Consumption
Figure 18:
Imports And Growth
Figure 19:
Import Prices
Figure 20:
Production, In Physical Terms, 2007–2020
Figure 21:
Production, In Value Terms, 2007–2020
Figure 22:
Imports, In Physical Terms, 2007–2020
Figure 23:
Imports, In Value Terms, 2007–2020
Figure 24:
Imports, In Physical Terms, By Country, 2020
Figure 25:
Imports, In Physical Terms, By Country, 2007–2020
Figure 26:
Imports, In Value Terms, By Country, 2007–2020
Figure 27:
Import Prices, By Country Of Origin, 2007–2020
Figure 28:
Exports, In Physical Terms, 2007–2020
Figure 29:
Exports, In Value Terms, 2007–2020
Figure 30:
Exports, In Physical Terms, By Country, 2020
Figure 31:
Exports, In Physical Terms, By Country, 2007–2020
Figure 32:
Exports, In Value Terms, By Country, 2007–2020
Figure 33:
Export Prices, By Country Of Destination, 2007–2020

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