Craft Spirits Market Size, Share, Growth, Trends, and Global Industry Analysis: By Product Type (Whiskey, Vodka, Gin, Rum, Brandy, and Others), By Distiller (Large, Medium, Micro), By Distribution Channel (On-Trade Channel, and  Off-Trade Channel) and Region Forecast 2019-2030

Craft Spirits Market size was valued at US$ 16,548.3 million in 2023 and is projected to reach a value of US$ 73,340.1 million by 2030, at a CAGR of 23.7% from 2024-2030. Moreover, the U.S. craft spirits market is projected to grow significantly, reaching an estimated US$ 63,630.3 million by 2032.

Craft spirits are alcoholic beverages produced in small-scale distilleries, made from high-quality, locally sourced ingredients and using traditional techniques. The growth in craft spirits remains very robust, as consumers seek more premium and artisanal products. Major drivers include growth in the number of craft distilleries, new product innovation, and an increasing population of millennials with the ability to buy. Other trends include immersive experiences like distillery tours and tastings, which create brand loyalty and attract customers.

Key players

The Craft Spirits market share is inclusive of several companies such as Anchor Brewers & Distiller, Asheville Distilling Company, Bacardi, Chase Distillery Ltd., Constellation Brands, Diageo Plc, Distell, East London Liquor Company, House Spirits, Pernod Ricard, Sibling Distillery, William Grant & Sons, Woodinville Whiskey.

In the market, top key players like Anchor Brewers & Distillers, one of the leading players in the market, manufacturing quality and innovative products. The company has a rich history of crafting spirits including whiskey, gin, and rum. Anchor Brewers & Distillers are noted for their dedication to old-school distillation techniques while at the same time applying new techniques that make them produce unique and flavorful spirits. The firm has a product following in consumers who are attracted to artisanal and locally crafted beverages. Quality and craftsmanship are the attributes that have cemented the company's position within the competitive market.

Key Takeaways

• The fastest-growing region is Asia-Pacific
• Based on Product Type, Craft Spirits Pipes segment holds the 43.2% market share
• Based on the End-Use Industry, the packaging segment holds a 64.8% market share

Facts & Figures

• The U.S. craft spirits market reached 13.2 million 9-liter cases in 2021, growing at an annual rate of 10.4%. In terms of market value, this translated to $7.5 billion, with growth of 12.2% over the year.
• The number of active craft distilleries operating in the U.S. was seen to have increased by 17.4% year over year in 2022, a total of 2,687 active producers.
• S. craft distilleries' exports jumped 58% to 164,000 9-liter cases, the highest on record, and marked the latest milestone in the relentless global thirst for American craft spirits.
• Europe's demand for craft spirits increased by 22%, with gin, vodka, and whiskey leading the charge as consumers opt for premium, locally sourced alcohol.
• California is the biggest state in the U.S. for craft spirit production with 236 active distilleries, followed by New York, Texas, Pennsylvania, and Washington.

Key Developments

• 2022: Diageo, through its drinks accelerator Distill Ventures, acquired Mr Black Coffee Liqueur. This acquisition highlights the growing popularity of liqueurs and the trend of major companies investing in craft spirits.
• 2022: Bacardi launched Palette, a new non-alcoholic spirit brand, in collaboration with Amsterdam-based bartenders1. This partnership was designed to create cocktails that cater to the increasing demand for non-alcoholic options.
• 2022: Amrut Distilleries and Nao Spirits launched premium craft rum offerings in India, contributing to the craft rum revolution in the country.

Craft Spirits Market Segmentation

By Product Type: The Whiskey segment dominates the market. This can be attributed to the sublime flavor profile of whiskey as well as growing popularity over its uniqueness. Besides, product innovations, such as the addition of several herbs and spices, have made whiskey more appealing. The health aspects of whiskey, including antioxidants, have also contributed to increasing its market share.

By Distiller: Large distilleries dominate the present market. This is due to larger distilleries have a more massive volume capacity, whereby they can produce between 100,000 to 750,000 gallons each year and thus can meet craft spirits demand, which seems to be on the uprise. They also benefit from economies of scale, which may mean lower production costs or competitive pricing. In large distilleries, marketing and distribution are usually more adequate, hence reaching a more extensive market

By Distribution Channel: On-trade channel is leading the market. This channel consists of sales through bars, restaurants, and nightclubs where the consumer experiences and purchases craft spirits in a social environment. On-trade channels benefit from growing consumer trends toward unique premium drinking experiences, as well as from distilleries' opportunities to showcase their products directly to customers.