The global craft spirits market was valued at USD 21.40 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 28.4% from 2024 to 2030. Key factors driving this market expansion include increasing demand for craft spirits, a rise in the number of craft distilleries, and growing disposable incomes. The millennial demographic, with significant purchasing power, is expected to fuel further growth. Craft distilleries are enhancing customer experiences through tours, tastings, and cocktail classes, which help build brand loyalty and encourage repeat business. Additionally, the rise of online platforms has made it easier for consumers to discover and purchase artisanal spirits globally. This has allowed small distilleries to expand their reach and cultivate a loyal following worldwide.
Craft spirits are produced by licensed distillers with a set production volume, who operate independently with less than 25% capital from an alcoholic beverage sector player. These spirits must be labeled in compliance with the Alcohol and Tobacco Tax and Trade Bureau (TTB) regulations in the U.S. Due to high demand in the United States, the market is predominantly concentrated in North America. In recent years, investment in the U.S. craft spirits industry has been growing rapidly, aided by favorable regulatory policies. In 2012, the TTB received 13,867 new applications, marking a 24.4% increase from 2009 and an 82% rise from 2006.
The millennial generation, born between the 1980s and early 2000s, represents a significant segment of alcoholic beverage consumers, particularly those who frequent restaurants and pubs. This demographic is a key driver for the craft spirits market. However, the COVID-19 pandemic caused many craft distilleries to temporarily close their tasting rooms to adhere to public health guidelines, leading to reduced on-site sales for over 40% of distilleries, according to a 2021 survey by the Distilled Spirits Council of the United States (DISCUS) and the American Distilling Institute. The craft beer industry continues to evolve, driven by innovation and a passion for unique, high-quality products. Moreover, the increasing consumer preference for locally-sourced and sustainable products, along with a growing interest in craft and premium beverages, will further boost market growth.
Regional Insights: In 2023, North America dominated the global craft spirits market, accounting for 59% of the total revenue and nearly 60% of the volume share. The region's millennial population is expected to drive continued demand for craft spirits. The rapid growth of manufacturers in the U.S. is supported by secure approval policies set by regulatory bodies.
The Asia Pacific craft spirits market is anticipated to grow at a CAGR of 35.1% from 2024 to 2030, driven by increasing consumer purchasing power and a growing millennial population in emerging economies such as China, India, Malaysia, Thailand, and Indonesia. This region is projected to experience the fastest growth in the craft spirits market over the forecast period. The rising number of economically independent millennials, especially in China and India, who are spending more on leisure activities, is expected to positively impact the market.
Get a preview of the latest developments in the Global Craft Spirits Market! Download your FREE sample PDF today and explore key data and trends
Key Companies & Market Share Insights: The global craft spirits market is highly competitive, with a number of well-established players such as Heaven Hill Distilleries Inc, Diageo plc, Pernod Ricard, Constellation Brands Inc., Suntory Holdings Limited, Bacardi Limited, Campari Group, Sazerac Company Inc., Highwood Distillers, and Rogue Ales. These companies offer a wide range of craft spirits and have extensive distribution networks that help them reach both regional and international consumers.
Key Craft Spirits Companies: The leading companies in the craft spirits market, holding the largest market shares and influencing industry trends, include:
• Heaven Hill Distilleries, Inc. • Diageo plc • Pernod Ricard • Constellation Brands, Inc. • Suntory Holdings Limited • Bacardi Limited • Campari Group • Sazerac Company, Inc. • Highwood Distillers • Rogue Ales
Gather more insights about the market drivers, restrains and growth of the Craft Spirits Market