Authored By: Sarah
11 Jul 2024

 Vodka Market in US Size to grow by USD 5284.56 million between 2024-2028

According to a research report “ Vodka Market in US” by Price (Premium, Value) Distribution Channel (On-trade, Off-trade) Product (Unflavored, Flavored) Geography (North America)- Global Forecast to 2028 published by Technavio, the market size is estimated to grow by USD 5284.56 million, at a CAGR of  4.45% during the forecast period. In the dynamic US market, private-label vodkas have emerged as a lucrative focus for retailers, particularly grocery stores, due to the burgeoning demand for flavored vodkas and cocktails among the millennial demographic. This trend is driving growth within the vodka sector, as major retailers capitalize on this consumer preference by introducing their own branded vodka offerings, often with a focus on flavored varieties. The private-label product segment has experienced significant expansion in the last decade, offering retailers an attractive margin of 10%-15% over national and global brands, thereby bolstering the overall growth trajectory of the vodka market in the US.

Browse market data tables, figures, and in-depth TOC on “Vodka Market in US” by Price (Premium, Value) Distribution Channel (On-trade, Off-trade) Product (Unflavored, Flavored) Geography (North America) Global Forecast to 2028. Download Free Sample


By Price, the Premium segment is projected to dominate the market size in 2024

In the US beverage market, on-trade distribution channels, also referred to as on-premises channels, have witnessed notable growth in the vodka sector. These channels include establishments where consumers purchase and consume vodka, such as bars, pubs, clubs, restaurants, and hotels. The surge in popularity of these venues among the millennial demographic, particularly their preference for nightlife and cocktail consumption, has significantly boosted on-premises expenditure on spirits like vodka. Millennials' affinity for flavored and unflavored vodka cocktails is further fueling this trend, making it an essential market segment for vodka manufacturers and distributors.

By Distribution Channel, On-trade  segment is expected to hold the largest market size for the year 2024

The premium vodka market segment in the US, encompassing vodkas priced above USD25, comprises premium, high-end premium, and super-premium offerings in 2023. This sector's expansion is primarily attributed to the evolving consumer perception that premium vodka brands utilize superior ingredients compared to their value counterparts. Additionally, market growth will be fueled by the proliferation of new product launches and the expansion of existing product lines with innovative flavors. The US, being a mature market, boasts a substantial millennial consumer base with significant purchasing power, particularly in on-trade channels, making it an alluring target demographic for industry participants.

North America is forecasted to hold the largest market size by region in 2024


The Vodka Market in US growth and forecasting report also includes detailed analyses of the competitive landscape of the market growth and forecasting and information about 20 market companies, including:

  • Bacardi Ltd.
  • Becle SAB de CV
  • Brown Forman Corp.
  • Campari Group
  • Constellation Brands Inc.
  • Diageo Plc
  • E. and J. Gallo Winery
  • Ethical Wine and Spirits Inc.
  • Fifth Generation Inc.
  • Grain and Barrel Spirits
  • Novabev Group
  • Pernod Ricard SA
  • Phillips Distilling Co.
  • Podlaska Wytwornia Wodek POLMOS SA
  • Polmos Zyrardow Sp. ZOO
  • Stoli Group
  • Suntory Holdings Ltd.
  • William Grant and Sons Ltd
  • Eastside Distilling Inc.
  • Globefill Inc.

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Research Analysis Overview

The vodka market in the US is experiencing a surge in growth, with consumers showing a preference for personalized, botanical, and handcrafted offerings. Traditional drinks like vodka are being reimagined with infusions of organic fruits such as ruby red grapefruits and blueberries, creating a new wave of fruit-based vodkas. SaloonBox, a subscription service, is leading the charge in delivering these unique and artisanal spirits to consumers' doors. Distilleries are focusing on traditional methods and using high-quality ingredients to produce premium and high-end vodkas. Brands like Titos Vodka and Dead Rabbit are leading the way, offering nonflavored segment options that cater to the wellness trend. The Aviary and other cocktail festivals are showcasing the creativity of mixologists and bartenders, who are experimenting with flavors like caramel, vanilla, and citrus in their cocktails. Premiumization of vodka is on the rise, with consumers seeking out organic infusions, gluten-free options, and flavored vodkas. The market is responding with innovative offerings, such as Titos' new flavored vodka line and Dead Rabbit's Irish Pot Still Vodka. The cocktail culture is evolving, with bars and lounges offering unique and personalized experiences, making vodka a versatile and exciting choice for consumers.

Market Research Overview

The vodka market in the US is a dynamic and evolving industry, with key players like Brown Forman, Absolut, and Smirnoff leading the way in the global vodka scene. The market is witnessing a trend towards premiumization, with consumers seeking out higher-end vodkas made using traditional methods and high-quality ingredients. The flavored segment, including fruit-based vodkas like Absolut Mini Raspberry Crush and Tails Cocktails, is particularly popular among millennials. Health consciousness is also driving innovation, with distilleries producing organic infusions using fruits such as ruby red grapefruits and blueberries. However, the nonflavored segment, including grain-based vodkas like Titos Vodka and SaloonBox, still holds a significant share of the market. Impurities are a concern for some consumers, leading to the growth of low-alcohol beverages and gluten-free vodkas. Offline trading continues to dominate, with hospitality venues such as nightclubs, bars, and lounges driving sales. Cocktail culture is thriving, with mixologists and bartenders experimenting with new flavors and techniques. IWSR Drinks reports that citrus cocktails are currently trending, with raspberry, lime, and cranberry being popular vodka flavors. Premium vodkas, such as those produced by Dead Rabbit and The Aviary, are gaining popularity due to their high-quality ingredients and traditional methods. The wellness trend is also influencing the market, with some consumers opting for caramel or vanilla-flavored vodkas as alternatives to fruit flavors. Blogging sites and cocktail festivals are also driving innovation and consumer engagement in the vodka market.


Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200

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