The American whiskey market is booming. Thanks to a new generation of drinkers, innovative producers, and a cultural shift away from vodkas and gins, the industry is growing faster than ever before. And while this may be great news for those who work in the business of making, marketing and selling whiskey, it also means that your competition is increasing. With so many options out there today and more coming every day, it’s important to stand out from the crowd if you want to succeed. However, with so many variables at play in this market that you might not understand why any of this is happening right now. Why are people suddenly drinking more American whiskey? What does it mean for you as an entrepreneur? Here are five reasons why the American whiskeys market is booming – and what you can do about it.
The Making of an American Whiskey Brand is Becoming More Complex
Before we get into the specifics of why people are suddenly drinking so much more American whiskey, it’s important to look at the market as a whole. There are a few important structural changes that have happened in the last decade that has led to a new and growing demand for whiskey. Firstly, the number of distilleries in the United States has increased dramatically. In fact, the number of distilleries producing whiskey has more than doubled since 2010. This makes it easier than ever to source high-quality American whiskey. It also has a knock-on effect on the market. More producers mean more competition, and this drives down prices. This, in turn, makes it easier for consumers to try new brands. Secondly, there has also been a change in the way that people perceive certain types of whiskey. Bourbon, in particular, has seen a massive rise in popularity. This is partly thanks to the industry has had the time to establish itself, but it’s also because people are now understanding the difference between different types of whiskey.
Consumers are Tired of Vanilla Vodka and Gin
Another important factor in the shift towards American whiskeys is the fact that other brands are becoming less popular. Vodka and gin have been growing in popularity for decades, but in recent years, these two drinks have reached a peak – and American whiskey has taken their place. Vodka is still the most popular spirit in America today, but its popularity has peaked. Whiskeys, by comparison, are growing in popularity at a much faster rate. Indeed, American whiskey sales have grown by 10% since 2013 – the same year in which vodka sales declined for the first time in decades. Gin, too, has been falling in popularity for some time now. This is partly because consumers are shifting their tastes towards sweeter drinks, but also because it’s become less popular as a mixer. As a result, there is now a huge gap in the market that American whiskey can fill.
Analysts Believe that whiskey has more potential than other alcoholic brands
Analysts are predicting that the American whiskey market will grow by 40% over the next five years. This is compared to an expectation of 10% growth for other alcoholic drinks including beer, wine, and cider. As the market continues to grow, the demand for American whiskey will become increasingly intense. At the same time, there is expected to be a decline in the demand for other types of whiskey, such as scotch. This is partly because American whiskey is so much easier to produce than scotch. However, it also shows that people are becoming less interested in other varieties of whiskey. As a result, the competition for American whiskey is growing – and the industry leaders of tomorrow will be those who are prepared for the challenge. This means that you need to take advantage of the current demand for American whiskey and make sure that your brand is appealing to consumers. If you do, you’re likely to be around for decades to come.
Millennials Are Shifting Tastes in Alcoholic Drinks
As with any other industry, the tastes of consumers are constantly changing. While many people drink whiskey because they like the taste, others choose to drink it because they like the image. Many drinkers who were in their early 20s in the late 2000s prefer bourbon to other drinks because they think it’s cool. And while this doesn’t explain why people suddenly started drinking more whiskey three years ago, it does explain why it continues to grow in popularity. As millennials get older and start to drink more, their tastes are likely to change. While many millennials still prefer the taste of vodka, gin, and other drinks, others are growing out of it. In fact, as a whole, millennials have become less interested in alcohol since 2010. Meanwhile, interest in American whiskey has grown. This is likely to be because many millennials associate the taste of American whiskey with their younger years.
The Business Case for Producing Whiskey May Be Stronger Than Ever Before
Finally, there may be a very good reason why the demand for American whiskey is rising. As people become more interested in American whiskey, businesses are likely to notice the potential for profit. This may encourage more producers to enter the market, which in turn pushes down prices. This is good news for consumers, but it also means that it’s harder than ever to break in. After all, you’re competing against brands that can make large quantities of whiskey – and sell it cheaply.
Conclusion
If you want to succeed in the American whiskey market, you need to make sure that your product has a real edge. Whether this means sourcing a unique ingredient, or creating a unique selling point, you need to stand out from the crowd. The demand for American whiskey is growing, and there are many reasons why this is happening. From the fact that the making of an American whiskey brand is becoming more complex, to the fact that millennials are shifting their tastes, this industry is booming. This is great news for people who work in the business of making, marketing, and selling whiskey – but it also means that your competition is increasing.
