Wine consumption drops for the first time in 25 years (FoodDive)
According to preliminary figures by IWSR Drinks Market Analysis, wine consumption in the US has decreased for the first time in 25 years in 2019, posting a -0.9% yoy volume loss.
Additionally, beer volume slipped 2.3% in 2019, marking its fourth year of decline, although both craft beers (+4.1%) and low- and no-alcohol categories (+6.6%) performed well.
Notably, distilled spirits and ready-to-drink products had a strong year, with sales rising 2.3% and 49.7%, respectively, driven by so-called ‘hard seltzers’, which account for 43% of the category.
Analysis and Comments
Hard seltzers (in other words sparkling water spiked with alcohol and fruity flavours) are the result of a combination of trends, including younger generations drinking less, favouring spirits over beer (for one because the calorie count is lower), and being willing to pay for high quality brands.
As a result, Nielsen reports that within the 12 months ended July 2018, sales of hard seltzers saw a 177% increase vs. a 193% increase in the 12 months ended April 2019 – and the market is expected to reach US$2.5bn by 2021