Vodka: Key market research findings
- Launch of new products and flavors drive market growth
- Value vodka segment is the dominant shareholder in the market
- Key vendors—Diageo, Pernod Ricard USA, Constellation Brands, and Bacardi USA
Technavio’s market research analysts predict the vodka market in the US to grow at a CAGR of almost 4% in terms of revenue between 2016 and 2020. The increasing launch of new products is the primary driving force behind growth in the market. Existing players and new entrants are introducing new products and variants in an attempt to gain market share and improve their profit margins. For instance, Pernod Ricard launched Oak by Absolut Vodka, a vodka infused with the flavor of oak chips and rested in oak barrels. In 2015, the hypermarkets and supermarkets segment accounted for 54% of the sales to dominate the vodka market in the US. The growth in this segment during the forecast is expected to be spurred by the high penetration rate of these stores across the country, the presence of dedicated sections for alcoholic beverages in many stores, and the availability of options in terms of vodka brands and vodka flavors.
The new market research report from Technavio presents a breakdown and analysis of vodka segments based on price.
“An increase in the demand for organic vodka is an upcoming trend in the market. The growing awareness of organic foods and their health benefits is seeping into the vodka market as well. People are increasingly opting for organic vodka which is distilled from organically grown ingredients like wheat, corn, and potato and contains water from natural resources. For instance, American Harvest Organic Vodka is distilled from organically grown wheat, and the water is sourced from Idaho’s Snake River Plain,” says Vijay Sarathi, Lead Analyst, Food & Beverages, Technavio Research.
Currently, the value vodka segment accounts for almost 33% of the overall market revenue to become the dominant shareholder in the vodka market in the US. Priced within a range of $10-$20, some of the prominent vodka brands in the segment include Smirnoff, Svedka, Skyy, and Pinnacle. The launch of new flavors by the vendors in this segment is expected to reflect positively on the value vodka market in the US by 2020.
The key vendors in the vodka market in the US include Diageo, Pernod Ricard USA, Constellation Brands, and Bacardi USA. The vodka market in the US is highly fragmented due to the presence of numerous international as well as regional players. Since the market is nearing maturity, the demand for vodka will decrease due to the rising popularity of other liquors like American bourbon and Tennessee whiskey. The vendors in this market are launching new products and adopting innovative packaging methods to gain a competitive edge over their rivals.
A more detailed analysis is available in the Technavio report, Vodka market in the US 2016-2020.
We can customize reports by other regions and specific segments upon request.
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