The introduction of new types of vodka styles has contributed to industry growth
New York, NY (PRWEB) November 04, 2014
The vodka distilleries industry swiftly recovered from the steep recessionary decline in consumer spending that plagued most alcoholic beverage industries. Despite suffering a steep 7.1% decline in revenue in 2010, industry revenue rebounded by 12.3% in 2011 and the industry is expected to experienced average annual growth of 0.6% over the five-year period to 2014. Although total industry revenue is projected to fall slightly by 0.3% in 2014, reaching $2.2 billion in total revenue, the next five years will likely be very promising for the Vodka Distilleries industry.
According to IBISWorld Industry Analyst Nick Petrillo, “The introduction of new types of vodka styles has contributed to the industry's growth over the past five years.” Vodka has been traditionally categorized based on price, with major vodka distilleries operating diverse portfolios consisting of value brands, premium brands and ultra-premium brands that each represent different pricing tiers. Over the past five years, however, new styles of vodka have been introduced to include flavored vodkas, low-calorie vodkas and even regional craft vodkas that boast locally sourced ingredients, limited quantities and strict attention to detail during distillation.
“Over the next five years, consumers are expected to respond positively to anticipated declines in excise taxes on distilled spirits and continual increases in per capita disposable income, both of which will encourage additional purchases of vodka,” says Petrillo. However, consumers of vodka have historically demonstrated staunch brand loyalty to particular brands, particularly brands that are imported from distilleries across the world. Many of the industry's most widely consumed brands, including Finlandia, Stolichnaya, Grey Goose, Absolut and Smirnoff, are not produced by US distilleries, and are therefore major competitors to domestic vodka brands. Total imports of vodka are expected to increase by a 4.3% annualized rate in the five years to 2014, and imports are projected to grow by a 3.7% annualized rate to $2.4 billion by the end of 2019. Over this period, the total value of imported vodka is estimated to surpass the total revenue generated from sales of domestic brands.
For more information, visit IBISWorld’s Vodka Distilleries in the US industry report page.
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IBISWorld industry Report Key Topics
The Vodka Distilleries industry primarily manufactures vodka and includes traditional (i.e. not flavored), flavored, craft and low-calorie varieties.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Barriers to Entry
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