Craft Spirits Global Market Report 2024

Craft spirits are beverages produced by distilleries, often using locally sourced ingredients, resulting in unique and creatively flavored spirits. The innovation and distinctiveness of craft spirits set them apart in the spirits market.

The main types of craft spirits encompass whiskey, gin, vodka, brandy, rum, and other varieties. Whiskey, for example, is a type of liquor derived from fermenting wort made from grains like rye, corn, barley, among others. Distilleries producing craft spirits can vary in scale, categorized as large-scale producers, medium-scale producers, or small-scale producers. Distribution channels for craft spirits include off-trade channels (such as retail) and on-trade channels (such as bars and restaurants). The craft spirits industry is characterized by its emphasis on quality, local ingredients, and artisanal production methods.

The craft spirits market research report is one of a series of new reports that provides craft spirits market statistics, including craft spirits industry global market size, regional shares, competitors with a craft spirits market share, detailed craft spirits market segments, market trends, and opportunities, and any further data you may need to thrive in the craft spirits industry. This craft spirits market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The craft spirits market size has grown exponentially in recent years. It will grow from $29.09 billion in 2023 to $37.71 billion in 2024 at a compound annual growth rate (CAGR) of 29.6%. The growth observed in the historic period in the craft spirits industry can be attributed to various factors, including effective marketing and branding strategies that have contributed to the popularity of craft spirits. Additionally, the rise of cocktail culture, the influence of tourism and tasting rooms, participation in trade shows and festivals, and the expansion of distribution channels have all played crucial roles in the industry's development during this period. These factors collectively highlight the multifaceted nature of the craft spirits market, where aspects such as branding, consumer experience, and industry events have contributed to its growth.

The craft spirits market size is expected to see exponential growth in the next few years. It will grow to $100.01 billion in 2028 at a compound annual growth rate (CAGR) of 27.6%. The anticipated growth in the forecast period in the craft spirits industry can be attributed to several factors, including the increasing influence of digital marketing and e-commerce, fostering collaborations and partnerships within the industry. The aging population, regulatory and taxation considerations, and the exploration of niche categories are expected to further contribute to the industry's growth. Major trends in the forecast period include the rise of low- and no-alcohol options, a focus on regional and terroir-driven offerings, innovative aging techniques, the popularity of ready-to-drink (RTD) cocktails, and the exploration of non-traditional ingredients.

The surge in the number of craft distilleries is anticipated to drive the growth of the craft spirits market in the foreseeable future. Craft distilleries, distinguished by their use of local ingredients and unique distillation processes, contribute to the expanding demand for craft spirits. A notable example is the American Craft Spirits Association's report from December 2021, indicating a 1.1% increase, totaling 2,290 craft distillers in that year. This growing trend in craft distilleries is a significant factor propelling the craft spirits market forward.

The rise in alcohol consumption is poised to be a driving force for the craft spirits market. Alcohol consumption, encompassing the ingestion of beverages containing ethanol, correlates with trends and preferences in the craft spirits sector. Consumers are increasingly inclined toward distinctive, authentic, and high-quality alcoholic beverages, creating a conducive environment for craft distillers to thrive. Notably, data from March 2023 from HRB National Drugs Library indicates a 7.6% increase in alcohol consumption per capita over the age of 15 in 2022, reaching 10.2 liters, reinforcing the impact of increased alcohol consumption on the craft spirits market.

A notable trend gaining traction in the craft spirits market is the upswing in investments. Key players in the craft spirits market are actively seeking investments to fortify their market positions. Diageo India, an India-based beverage alcohol company operating in the craft spirits sector, made a substantial investment of $200 million (₹200 crores) in its craft spirits project in March 2022. Additionally, United Spirits, another prominent player in the Indian beverage industry, invested $31.50 million (Rs31.50 crore) in craft gin-maker Nao Spirits and Beverages during the same month. These investments highlight the commitment of major companies to tap into the potential of the craft spirits market and expand their presence, particularly in emerging segments like premium craft gin.

Prominent companies in the craft spirits market are actively engaged in innovation, particularly in crafting special and exclusive spirits, as a strategy to bolster their market share and increase profitability. Special and exclusive craft spirits represent unique and limited-edition alcoholic beverages produced in small batches by independent distilleries. A case in point is Eastside Distilling Inc., a US-based distillery company, which introduced a product named Limited Edition in March 2021. These exclusive offerings are meticulously crafted, using premium ingredients and distinctive production methods, with the aim of providing customers with a one-of-a-kind experience. Limited editions often garner significant demand from collectors and enthusiasts seeking distinctive and rare spirits.

In February 2022, Heaven Hill Distilleries Inc., a US-based family-owned and operated distillery, made a strategic move by acquiring Samson & Surrey for an undisclosed amount. This acquisition is anticipated to fortify Heaven Hill's brand portfolio, particularly in the premium and super-premium craft spirits segment. Samson & Surrey, a US-based producer of spirits and alcohol, brings valuable assets to Heaven Hill, further enhancing its market presence and positioning in the competitive craft spirits industry.

Major companies operating in the craft spirits market include House Spirits Distillery LLC, Rémy Cointreau Group, Rogue Ales & Spirits, William Grant & Sons Ltd., Constellation Brands Inc., Pernod Ricard SA, Diageo PLC, Anchor Brewers & Distillers, Heaven Hill Brands, Suntory Holdings Limited, Bacardi Limited, Fifth Generation Inc. (Producer of Tito's Handmade Vodka), Few Spirits, St. Augustine Distillery, Old Fourth Distillery, Coppersea Distilling, Balcones Distilling, New York Distilling Company, Tuthilltown Spirits, Finger Lakes Distilling, Black Button Distilling, Iron Smoke Distillery, Wigle Whiskey, New Holland Brewing & Distilling, Catoctin Creek Distilling Company, Dry Fly Distilling, Leopold Bros., Round Turn Distilling, Greenbar Distillery

North America was the largest region in the craft spirits market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the craft spirits market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the craft spirits market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK and USA.

The craft spirits market consists of sales of gin, tequila, whiskey, rum and vodkas. 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.


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