Data indicates that the emerging market for non-alcoholic spirits in the United States is projected to reach $13.3 million by 2027, driven primarily by expansion in on-premise sales.
According to GlobalData analysis, the United States generated around $8.93 million in revenue in 2022, selling approximately 32,222 nine-litre cases (equivalent to 290,000 liters) of non-alcoholic spirits during that period.
The analytics and consulting firm forecasted that this figure could increase to 40,000 nine-litre cases (equivalent to 360,000 liters) by the year 2027.
In terms of volume, the on-premise and foodservice channel is anticipated to experience faster growth compared to the off-trade, recovering to pre-pandemic levels by the year 2025.
Most non-alcoholic beverages are distributed through off-premise channels in the United States. In 2022, the off-trade accounted for nearly double the volume sold in on-premise and foodservice outlets. Nevertheless, by 2027, the on-premise sector is expected to close the gap.
According to GlobalData’s report, “United States Spirits – Market Assessment and Forecasts to 2027,” Diageo emerged as the leading player in the US non-alcoholic spirits market in 2022. This dominance was driven by Diageo’s brands, including Seedlip, Aecorn, and Tanqueray 0.0%.
Following closely, the second-largest player was the domestic producer Spiritless, boasting Kentucky 74 and Spiritless. Dry Soda’s Non-Alcoholic Botanical Bubbly and Pernod Ricard’s Ceder’s were also notable contenders in the market.
It comes as non-alcoholic spirits producers have highlighted the potential of the US market.
In December, the Australian non-alcoholic beverage company Lyre’s reported triple-digit growth in the US for the previous year and announced plans to concentrate its efforts in both the US and the UK in 2024.
Co-founder Carl Hartmann said, “We’ve got so much new business and wins that you’ll see into 2024 that we can’t take our eye off the prize in both markets and, you know, certainly not to discount other markets that have potential, but that just don’t have the materiality to move the needle as a market like the US does, for example.”
The Scottish manufacturer Spirits of Virtue recently launched its collection of non-alcoholic spirits in the US, expressing confidence that the market was “ready to go pop.”
Roddy Nicoll, co-founder and CEO of the Clydebank, Glasgow-based distillery, said the UK was seen as an experienced market from which US distributors were keen to learn.
“As a UK-based exporter, we’re not just exporting quality liquids, we’re exporting knowledge of where the market’s going to go,” he said. “My [US] export partners are greediest to know: ‘Tell me what’s coming. How do we position ourselves?’”
Spirits of Virtue’s US distributor initially shipped a 40ft container containing 19 SKUs, and subsequently, they doubled that order, amounting to approximately 45,000 bottles. “In non-alcoholic terms, that’s a substantial quantity,” remarked Nicoll.
The Mark Anthony Group, owner of the White Claw brand, dominated the overall alcoholic spirits market in the US with a 15.9% share. Just last month, the Canadian beverage company introduced a non-alcoholic variant of its flagship White Claw hard seltzer.
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