*This article was originally released in March 2023 and updated with additional material in November 2024.

Innovation and growth within the American whiskey category have been a bright spot in the beverage alcohol market over the last few years, from flavored options to the rise of the American Single Malt. In 2023, American whiskey accounted for 11.8% of all spirits consumption in the U.S. with over 35 million 9-liter cases sold, placing the category ahead of the fast-rising tequila segment.

As whiskey continues to hit new benchmarks, we have compiled a comprehensive overview of the category for those interested in building a whiskey brand in the U.S.

How Big Is the Straight Whiskey Market?

Straight whiskey in the U.S. is currently led by mainstay brands such as Jim Beam, Jack Daniels, Evan Williams, and Maker’s Mark, but the category is being pushed forward even further by high-growth brands like Ole Smoky, Woodford Reserve, and Buffalo Trace. Each of these brands saw their 9-liter case volumes grow over 5% from 2022 to 2023, with Buffalo Trace leading the way with a 16.7% jump year-over-year. Overall, straight whiskey accounted for 10% of all spirits consumption in the U.S. last year. The states that were responsible for selling the most 9L cases of straight whiskey included:

California – 3.8 million cases
Texas – 2.3 million cases
Florida – 2.1 million cases
Ohio – 1.3 million cases
North Carolina – 1.2 million cases

The states and territories responsible for selling the most straight whiskey cases per capita included:

Kentucky – 970k cases (291 per 1,000 adults)
New Hampshire – 283k cases (259 per 1,000 adults)
Wyoming – 86k cases (201 per 1,000 adults)
Washington D.C. – 99k cases (191 per 1,000 adults)
Missouri – 793k cases (173 per 1,000 adults)

How Big Is the Blended Whiskey Market in the United States?

In 2023, the blended whiskey segment was led by brands including Seagram’s 7 Crown, Kessler, and Kentucky Deluxe. While blended whiskies showed limited growth last year compared to straight whiskey, the brands with the most significant growth in the segment were McCormick, Heaven Hill, and Beam’s 8 Star. The states that were responsible for selling the most 9L cases of blended whiskey included:

California – 658k cases
Texas – 484k cases
Wisconsin – 442k cases
Florida – 298k cases
New York – 235k cases

The states and territories responsible for selling the most blended whiskey cases per capita included:

Wisconsin – 442k cases (100 per 1,000 adults)
Oklahoma – 139k cases (48 per 1,000 adults)
Louisiana – 125k cases (37 per 1,000 adults)
Missouri – 161k cases (35 per 1,000 adults)
Nevada – 79k cases (33 per 1,000 adults)

Subscribe to the Park Street Daily Newsletter to Learn More About Category Trends!

Trends Driving Whiskey’s Popularity

Flavored Whiskey Market

While flavored whiskey is not a new phenomenon, its momentum has snowballed since 2010 with major producers like Jack Daniels and Crown Royal launching flavored SKUs to great success. Even today, longstanding SKUs like Crown Royal Regal Apple Flavored Whisky, Jack Daniel’s Tennessee Fire Flavored Whiskey, and Fireball Cinnamon Whisky are among the top sellers on the e-commerce platform Drizly.

Craft distillers are also using flavor experimentation as a point of differentiation. Flavors like cinnamon, apple, and honey have been traditionally popular in this segment, but new varieties are popping up to supplement high consumer interest.

Flavored whiskey’s potential has been reflected in M&A activity over the last year as well. In 2022, the Campari Group struck a deal to bring Howler Head Banana Bourbon Whiskey into its portfolio. The first quarter of 2023 also saw Pernod Ricard acquire cult favorite Skrewball Peanut Butter Whiskey.

Major strategics are continually investing along the lines of the flavored whiskey category after seeing brands in this segment generate a high degree of consumer interest.

Premiumization

The premiumization trend was particularly evident in 2022. Super-premium spirits saw their share of the total price tier bracket rise to 24% in May of 2022, up 1.4% percentage points when compared to two years prior, according to CGA by Nielsen IQ. Whiskey was a key driver of this growth, as it led all spirits categories in terms of dollar share for this period, claiming a 27% share of total dollar value. Bourbon saw a value increase of 8% in 2022 on the back of a strong year for U.S. whiskey.

American Single Malt

At a time when the brown spirits market is flooded with options and consumer interest is at an all-time high, American single malts are serving as a model of success for new whiskey segments.

Craft spirits producers in particular have led the development of the category as a means of market differentiation from bourbons or ryes. These whiskies are unique to the U.S. in terms of their use of local terroir and American barley. The result is a product that is highly differentiated from Scotch whiskies.

In the U.S., consumer knowledge and acceptance surrounding this style are steadily growing. Meanwhile, the American Single Malt Whiskey Commission has expanded in recent years to reach 130 members.

What is American Single Malt Whiskey?

After years of lobbying by craft distillers for American single malts to receive recognition as a distinct category, the Alcohol and Tobacco Tax and Trade Bureau recently decided to formalize a definition for the category. Under the proposed definition, American single malts will need to meet the following requirements:

Distilled entirely at one United States distillery
Must be mashed, distilled, and matured in the United States
Distilled to a proof not exceeding 160 proof from a fermented mash of 100% malted barley
Stored in oak containers not exceeding 700 liters
Bottled at no less than 80 proofs at 40% ABV

The official definition of American single malts is a major milestone for the category, and it will give craft brands a platform to differentiate and compete in global markets in the future.

An Overview of the American Whiskey Market