Bourbon Spirits Market Report 2026

The bourbon spirits market size has grown strongly in recent years. It will grow from $8.79 billion in 2025 to $9.35 billion in 2026 at a compound annual growth rate (CAGR) of 6.4%. The growth in the historic period can be attributed to growth of american whiskey consumption, expansion of on-trade establishments, rising popularity of craft distilleries, aging inventory availability, strong domestic bourbon culture.

The bourbon spirits market size is expected to see strong growth in the next few years. It will grow to $11.68 billion in 2030 at a compound annual growth rate (CAGR) of 5.7%. The growth in the forecast period can be attributed to growing international demand for bourbon, rising investments in premium spirits, expansion of experiential marketing, increasing popularity of cocktail culture, growth of e-commerce alcohol sales. Major trends in the forecast period include growing demand for premium and craft bourbon, rising interest in barrel-finished varieties, expansion of limited-edition bourbon releases, increasing focus on heritage and authenticity, enhanced brand storytelling and packaging innovation.

The rising consumption of alcoholic beverages is expected to propel the growth of the bourbon spirits market in the coming years. Alcoholic beverages are drinkable liquids containing ethanol, a psychoactive substance that is rapidly absorbed into the bloodstream and distributed throughout the body. Increased consumption of alcoholic beverages is driven by evolving social norms, wider product availability, innovative marketing strategies, and strong cultural influences. Bourbon spirits, known for their rich and distinctive flavor profiles, are widely enjoyed neat, on the rocks, or as a key ingredient in cocktails, making them a popular choice among spirit consumers. For example, in February 2024, the Distilled Spirits Council of the United States (DISCUS), a US-based trade association, reported that in 2023 ready-to-drink (RTD) spirits experienced a 26.8% increase in sales, emerging as the fastest-growing spirits category by revenue. As a result, the growing consumption of alcoholic beverages is fueling the expansion of the bourbon spirits market.

Leading companies in the bourbon spirits market are focusing on innovation to meet evolving consumer preferences and differentiate their products. One innovative approach is the production of wood-finished bourbon, which involves aging bourbon in barrels previously used for other spirits or wines to impart unique flavors. For example, in May 2024, RD1 Spirits recently introduced a wood-finished bourbon-tasting set that includes small bottles of RD1 Kentucky Straight Bourbon finished with French Oak, Brazilian Amburana Wood, and a double finish in Oak and Maple Barrels. This offering allows enthusiasts to enjoy distinct tasting experiences at home, replicating RD1's signature 750-ml bottles with their iconic horse farm fencing etching and vibrant labels denoting the wood finishes. The company meticulously selects barrels, adds unique wood staves, and ages the bourbon further to enhance flavor profiles.

In June 2023, MGP Ingredients Inc., a US-based branded-spirits company, acquired Penelope Bourbon LLC for an undisclosed amount. This acquisition enables MGP Ingredients to strengthen and expand its premium-plus bourbon and whiskey portfolio by incorporating Penelope’s award-winning bourbon offerings. Penelope Bourbon LLC is a US-based whiskey brand known for its smooth, carefully blended straight bourbon whiskeys produced using multiple mash bills and limited-edition releases, positioning the brand firmly within the premium segment of the bourbon spirits market.

Major companies operating in the bourbon spirits market are Suntory Holdings Limited, Brown-Forman Corporation, Sazerac Company Inc, MGP Ingredients Inc, Jim Beam, Buffalo Trace, Angel's Envy, Heaven Hill Brands, Four Roses, Maker’s Mark, Bardstown Bourbon Company, Laws Whiskey House, Woodford Reserve, Bulleit Bourbon, Old Forester, Knob Creek, Conecuh Brands LLC, Distiller’s Way LLC, Evan Willaims, Jos. A. Magnus & Co, Nashville Barrel Company, Michters Distillery LLC, Wyoming Whiskey Inc, Willett Distillery.

Europe was the largest region in the bourbon spirits market in 2025. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the bourbon spirits market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the bourbon spirits market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The bourbon spirits market consists of the sale of bourbon whiskey, straight bourbon, single barrel bourbon, and flavored bourbon. Values in this market are ‘factory gate’ values, that is, the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors, and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

This product will be delivered within 1-3 business days.