Despite several months of economic uncertainty and rising inflation, the luxury spirits market is still holding strong, according to a new report.
The Distilled Spirits Council of the United States (DISCUS) created the Luxury Brand Index to gauge the growth of premium spirits priced at $50 or more, according to an Oct. 19 press release. The recent report compares year-over-year sales across six spirits categories.
The luxury tequila category showed the highest growth, at a rate of 43 percent. American whiskey sales increased by 30 percent compared to 2021, while Scotch and Irish whiskey recorded growth at 13 and seven percent, respectively.
Cognac experienced a nine percent annual growth, a slower rate compared to last year’s impressive 48 percent growth.
“We continued to see strong consumer demand for luxury spirits brands through the second quarter of 2022 despite the current economic environment,” DISCUS chief of public policy Christine LoCasio states in the release. “It appears macroeconomic headwinds slowed the astonishing growth rate of luxury spirits sales of 2021 but were not strong enough to reverse the positive premiumization trend. Distilled spirits are affordable luxuries that bring spirits consumers great joy. Consumers are willing to spend extra for that special spirit and choose to drink better, not more.”
The high-end spirits market, in total, demonstrated a 23 percent growth across categories — a slower rate than the 2020–2021 period, which recorded a 50 percent year-over-year growth. The report remains optimistic about the future of luxury liquors.
Overall, while this year’s economic concerns might have worried some distillers, it appears that American consumers are still sipping premium spirits. We’ll raise a glass to that!
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