Vodka Distilleries in the US - Market Research Report (2014-2029)
New York, United States
Last Updated: August 2024
NAICS OD4289Revenue
$4.7bn
Past 5-Year Growth
Profit
$XXX.Xm
Employees
5,637
Businesses
572
Wages
$XXX.Xm
Vodka Distilleries in the US industry analysis
Like other spirit producers, vodka distilleries rely on a stable sales flow to on-premise markets (restaurants, bars, nightclubs and more) and off-premise markets (i.e., retailers). COVID-19 interrupted the sales flow to on-premise markets significantly, while off-premise sales soared. In the pandemic's wake, consumers flocked to bars, restaurants and event spaces, but they displayed a penchant for spending less through such channels. Consumers became more accustomed to the reduced markup on vodka at retail establishments compared to those at on-premise channels, causing vodka sales to fluctuate much more than in previous years. Though sales have begun stabilizing in more recent years, revenue has been declining at a CAGR of 1.8% over the past five years and is expected to total $4.7 billion in 2024 when revenue will expand an estimated 0.6%.
Trends and Insights
- Consumers are ditching pricey bars for liquor stores, focusing on quality over quantity. They’re spending those extra dollars on higher-end brands, making off-premise sales a goldmine.
- Younger people aged 35 and under drive the craft distillery trend. They crave high-quality, unique flavors over traditional brands and want a personalized experience.
- The Southeast is a vodka distillery hotspot. With easy access to essential ingredients like coarse grains, this region offers a competitive edge for both new and established distilleries.
- Vodka producers face stiff competition from other alcoholic drinks and recreational marijuana. With consumers becoming more health-conscious and experimental, vodka distilleries must innovate to stay relevant.
Industry Overview
Market size and recent performance (2014-2029)
Industry revenue has declined at a CAGR of 1.8 % over the past five years, to reach an estimated $4.7bn in 2024.
Trends and Insights
Climbing prices keep many mirroring pandemic-era spending patterns
- Social distancing and similar regulations caused key on-premise markets, like restaurants and bars, to shrink substantially during the pandemic's peak. Demand for vodka persisted and sales through off-premise markets, such as liquor stores and other retailers, boomed.
- Additional trends and insights available with purchase
Source: IBISWorld
Industry outlook (2024-2029)
Market size is projected to grow over the next five years.
Trends and Insights
Hurdles will remain but sales will stabilize
- In the coming years, vodka distilleries will likely benefit from less volatile conditions, enabling most to enjoy the somewhat evergreen quality of alcoholic beverages and return to a period of steady expansion.
Biggest companies in the Vodka Distilleries in the US
| Company | Market Share (%)
2024 | Revenue ($m)
2024 | Profit ($m)
2024 | Profit Margin (%)
2024 |
|---|---|---|---|---|
Fifth Generation Inc. | 1,866.8 | 434.1 | 23.3 | |
Diageo Plc | 552.9 | 125.1 | 22.6 | |
Heaven Hill Brands | 308.0 | 71.6 | 23.2 |
To view the market share and analysis for all 3 top companies in this industry, view purchase options.
Products & Services Segmentation
Source: IBISWorld
Industry revenue is measured across several distinct product and services lines, including Value vodka, Premium vodka and High-end premium vodka. Value vodka is the largest segment of the Vodka Distilleries in the US.
Trends and Insights
More disposable income means consumers are steering away from value and premium brands
- Value brands are priced under $20 per 1.75-liter bottle, while premium brands fall between $20 and $40. These affordable options have seen declining sales as consumer spending power grows, but loyal customer bases help maintain their market visibility and relevance.
- More insights available in the full report
Widen you competitive advantage with related industries
Competitors
- Breweries in the US
- Wineries in the US
Complementors
- Distilleries in the US
- Beer, Wine & Liquor Stores in the US
International industries
- Global Spirits Manufacturing
- Distilleries in Canada
- Spirit Manufacturing in Australia
- Spirit Manufacturing in New Zealand
- Spirit Production in the UK
Table of Contents
About this industry
Industry definition
This industry manufactures vodka from fermented potatoes or cereal grains to create traditional (i.e. not flavored), flavored, craft and low-calorie spirits for consumption.
What's included in this industry?
Producing value vodkaProducing premium vodkaProducing high-end vodkaProducing super premium vodkaCompanies
Fifth Generation Inc.Diageo PlcHeaven Hill BrandsPurchase this report to view all 3 major companies in this industry.
Related Terms
PREMIUMIZATIONPREMIUM VODKAULTRA-PREMIUM VODKAWASHBODYHEADSTAILSIndustry Code
NAICS 31214 - Vodka Distilleries in the US
Performance
Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.
Analyst insights
Consumers are ditching pricey bars for liquor stores, focusing on quality over quantity. They’re spending those extra dollars on higher-end brands, making off-premise sales a...
In this chapter (4)
- Current Performance
- Outlook
- Volatility
- Life Cycle
Key metrics
- Annual Revenue, Recent Growth, Forecast, Revenue Volatility
- Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
- Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
- Total Profit, Profit Margin, Profit per Business
Charts
- Revenue, including historical (2014-2023) and forecast (2024-2029)
- Employees, including historical (2014-2023) and forecast (2024-2029)
- Businesses, including historical (2014-2023) and forecast (2024-2029)
- Profit, including historical (2014-2024)
- Industry Volatility vs. Revenue Growth
- Industry Life Cycle
Detailed analysis
- Trends in supply, demand and current events that are driving current industry performance
- Expected trends, economic factors and ongoing events that drive the industry's outlook
- Key success factors for businesses to overcome volatility
- How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.
Products and Markets
Learn about an industry's products and services, markets and trends in international trade.
Analyst insight
Younger people aged 35 and under drive the craft distillery trend. They crave high-quality, unique flavors over traditional brands and want a personalized experience.
In this chapter
- Products & Services
- Major Markets
- International Trade
Key metrics
- Largest market segment and value in 2024
- Product innovation level
- Total imports, level and trend
- Total exports, level and trend
- Trade Balance
Charts
- Products & services segmentation in 2024
- Major market segmentation in 2024
- International trade, including imports by country and exports by country
Detailed analysis
- Trends impacting the recent performance of the industry's various segments
- Innovations in the industry's product or service offering, specialization or delivery method
- Key factors that successful businesses consider in their offerings
- Buying segments and key trends influencing demand for industry products and services
- Recent trends in import and export volumes, country of origin or destination, and expected future trends
Geographic Breakdown
Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.
Analyst insights
The Southeast is a vodka distillery hotspot. With easy access to essential ingredients like coarse grains, this region offers a competitive edge for both new and established ...
In this chapter (1)
- Business Locations
Charts
- Share of revenue, establishment, wages and employment in each state
- Share of population compared to establishments in each region in 2024
Tables
- Number and share of establishments in each state in 2024
- Number and share of revenue each state accounts for in 2024
- Number and share of wages each state accounts for in 2024
- Number and share of employees in each state in 2024
Detailed analysis
- Geographic spread of the industry across North America, and trends associated with changes in the business landscape
- Key success factors for businesses to use location to their advantage
Competitive Forces
Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.
Analyst insights
Vodka producers face stiff competition from other alcoholic drinks and recreational marijuana. With consumers becoming more health-conscious and experimental, vodka distiller...
In this chapter (4)
- Concentration
- Barriers to Entry
- Substitutes
- Buyer & Supplier Analysis
Key metrics
- Industry concentration level
- Industry competition level and trend
- Barriers to entry level and trend
- Substitutes level and trend
- Buyer power level and trend
- Supplier power level and trend
Charts
- Market share concentration among the top 4 suppliers from 2019-2024
- Supply chain including upstream supplying industries and downstream buying industries, flow chart
Detailed analysis
- Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
- Key success factors for businesses to manage the competitive environment of the industry.
- Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
- Key success factors for potential entrants to overcome barriers to entry.
- Competitive threats from potential substitutes for the industry’s own products and services.
- Key success factors for how successful businesses can compete with substitutes.
- Advantages that buyers have to keep favorable purchasing conditions.
- Advantages that suppliers have to maintain favorable selling conditions.
- Key success factors for how businesses can navigate buyer and supplier power.
Companies
Learn about the performance of the top companies in the industry.
Analyst insights
Vodka distilleries tend to come in one of two sizes. On the one hand, you have global, mega-alcoholic beverage producers, like Diageo PLC; on the other hand, you have small, ...
In this chapter
- Market Share Concentration
- Companies
- Company Spotlights
Charts
- Industry market share by company in 2020 through 2024
- Major companies in the industry, including market share, revenue, profit and profit margin in 2024
- Overview of Fifth Generation Inc.'s performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Diageo Plc's performance by revenue, market share and profit margin from 2018 through 2024
- Overview of Heaven Hill Brands's performance by revenue, market share and profit margin from 2018 through 2024
Detailed analysis
- Description and key data for Fifth Generation Inc., and factors influencing its performance in the industry
- Description and key data for Diageo Plc, and factors influencing its performance in the industry
- Description and key data for Heaven Hill Brands, and factors influencing its performance in the industry
External Environment
Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.
Analyst insights
The three-tier system tightly controls vodka distribution in the US. Distilleries must sell to distributors, who supply retailers, ensuring no overlap in the supply chain and...
In this chapter
- External Drivers
- Regulation & Policy
- Assistance
Key metrics
- Regulation & policy level and trend
- Assistance level and trend
Charts
- Regulation & Policy historical data and forecast (2014-2029)
- Assistance historical data and forecast (2014-2029)
Detailed analysis
- Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
- Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
- Key governmental and non-governmental groups or policies that may provide some relief for industry operators.
Financial Benchmarks
View average costs for industry operators and compare financial data against an industry's financial benchmarks over time.
Analyst insights
Volatile input costs are shaking up vodka production. Climate change and supply chain issues have caused significant fluctuations in the price of coarse grains, making it cha...
In this chapter
- Cost Structure
- Financial Ratios
- Key Ratios
Key metrics
- Profit margin, and how it compares to the sector-wide margin
- Average wages, and how it compares to the sector-wide average wage
- Largest cost component as a percentage of revenue
- Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio
Charts
- Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
- Investment vs. share of economy
Data tables
- Industry Multiples (2017-2022)
- Industry Tax Structure (2017-2022)
- Income Statement (2017-2022)
- Balance Sheet (2017-2022)
- Liquidity Ratios (2017-2022)
- Coverage Ratios (2017-2022)
- Leverage Ratios (2017-2022)
- Operating Ratios (2017-2022)
- Cash Flow & Debt Service Ratios (2014-2029)
- Revenue per Employee (2014-2029)
- Revenue per Enterprise (2014-2029)
- Employees per Establishment (2014-2029)
- Employees per Enterprise (2014-2029)
- Average Wage (2014-2029)
- Wages/Revenue (2014-2029)
- Establishments per Enterprise (2014-2029)
- IVA/Revenue (2014-2029)
- Imports/Demand (2014-2029)
- Exports/Revenue (2014-2029)
Detailed analysis
- Trends in the cost component for industry operators and their impact on industry costs and profitability
Key Statistics
Industry Data
Data Tables
Including values and annual change:
- Revenue (2014-2029)
- IVA (2014-2029)
- Establishments (2014-2029)
- Enterprises (2014-2029)
- Employment (2014-2029)
- Exports (2014-2029)
- Imports (2014-2029)
- Wages (2014-2029)
Methodology
How are IBISWorld reports created?
IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.
Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.
IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.
What data sources do IBISWorld analysts use?
Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.
Key data sources in the US include:
- US Census Bureau
- US Bureau of Labor Statistics
- US International Trade Commission
Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.
These sources include:
- Industry and trade associations
- Industry federations or regulators
- Major industry players annual or quarterly filings
Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.
How does IBISWorld forecast its data?
IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.
IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.
Learn more about our methodology and data sourcing on the Help Center.
Frequently Asked Questions
Unlock comprehensive answers and precise data upon purchase. View purchase options.
What is the market size of the Vodka Distilleries in the US industry in United States in 2024?
The market size of the Vodka Distilleries in the US industry in United States is $4.7bn in 2024.
How many businesses are there in the Vodka Distilleries in the US industry in 2024?
There are 572 businesses in the Vodka Distilleries in the US industry in United States, which has grown at a CAGR of 3.9 % between 2019 and 2024.
Has the Vodka Distilleries in the US industry in United States grown or declined over the past 5 years?
The market size of the Vodka Distilleries in the US industry in United States has been declining at a CAGR of 1.8 % between 2019 and 2024.
What is the forecast growth of the Vodka Distilleries in the US industry in United States over the next 5 years?
Over the next five years, the Vodka Distilleries in the US industry in United States is expected to grow.
What are the biggest companies in the Vodka Distilleries in the US market in United States?
The biggest companies operating in the Vodka Distilleries market in United States are Fifth Generation Inc., Diageo Plc and Heaven Hill Brands
What does the Vodka Distilleries in the US in United States include?
Producing value vodka and Producing premium vodka are part of the Vodka Distilleries in the US industry.
Which companies have the highest market share in the Vodka Distilleries in the US in United States?
The company holding the most market share in United States is Fifth Generation Inc..
How competitive is the Vodka Distilleries in the US industry in United States?
The level of competition is moderate and increasing in the Vodka Distilleries in the US industry in United States.
