Passionate drinkers of whiskey will purchase premium whiskey, leading to revenue growth
New York, NY (PRWEB) November 17, 2014
The past five years have demonstrated remarkable change for the Whiskey and Bourbon Distilleries industry, not only from the industry's most dominant distillers, but also from an emerging class of independent microdistillers from across the country. Although industry household brands such as Jim Beam, Evan Williams, Jack Daniel's and Wild Turkey have all invested in major production facilities and new artisanal stills, it is the growing class of craft distilleries that has provided the industry with its recent boost. Despite the top four whiskey brands holding an estimated 53.2% market share, the number of industry establishments in the Whiskey and Bourbon Distilleries industry is projected to increase at an 11.6% annualized rate over the five years to 2014. This massive growth from independent newcomers like Kings County, Ole Smoky and Catoctin Creek has contributed to projected annualized revenue growth of 3.3%, reaching $2.4 billion in the five years to 2014.
According to IBISWorld Industry Analyst Nick Petrillo, “The industry's recent popularity is attributable to US consumers' increasing preference for craft alcoholic beverages.” The craft phenomenon has generally been driven by consumers who seek out alcoholic beverages that are made with premium ingredients, expert processes and careful attention to detail. Much of this craft craze began with craft beer and cider producers, although the popularity of small-scale alcoholic beverage production has reached the Whiskey and Bourbon Distilleries industry in recent years.
“The industry, however, may not experience the same explosive growth rates over the next five years compared with popular alcoholic beverage industries,” says Petrillo. Although many distillers are increasing their promotional budgets, developing milder brands to appeal to casual whiskey drinkers and expanding production throughout the United States, whiskey remains a relatively slower growing industry. Whiskey is often less popular for casual drinkers. Passionate drinkers of whiskey are more prone to purchase premium whiskey from the industry, but the emerging independent brewers in this industry still must establish themselves as legitimate contenders in the industry. Since it often takes several years for truly premium whiskeys to age in barrels and become desirable, there may be a lag in the industry's projected surge in growth over the next five years.
For more information, visit IBISWorld’s Whiskey and Bourbon Distilleries in the US industry report page.
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IBISWorld industry Report Key Topics
The Whiskey and Bourbon Distilleries industry consists of establishments that distill grains and manufacture them into whiskey. The distillation process varies and can lead to many different forms of whiskey, including bourbon, rye, malt and other styles and blends. These whiskeys are bottled and sold to liquor wholesalers, bars, casinos, restaurants, hotels and other retail stores.
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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