What Has Been the Growth of the Craft Spirits Market So Far?
The craft spirits market has seen considerable growth due to a variety of factors.
• In the last few years, there has been a significant expansion in the size of the craft spirits market. Its growth is predicted to surge from $37.71 billion in 2024 to a whopping $48.87 billion in 2025, reflecting a compound annual growth rate (CAGR) of 29.6%.
Several factors, including marketing and branding efforts, the popularity of cocktail culture, tourism and tasting rooms, trade shows and festivals, and distribution expansion, contributed to its growth in the historic period.
What Are the Future Growth Projections for the Craft Spirits Market?
The craft spirits market is expected to maintain its strong growth trajectory in upcoming years.
• The predicted increase in the size of the craft spirits market is substantial, with expectations of it swelling to $125.67 billion by 2029, rising at a compound annual growth rate (CAGR) of 26.6%.
Factors contributing to this projected growth over the forecast period include digital marketing and e-commerce approaches, strategic collaborations and partnerships, an aging population demographic, regulatory and taxation policies, and niche categories. Key trends forecasted for this period encompass options with low or no alcohol, regionally-specific and terroir-driven offerings, inventive aging methods, ready-to-drink (RTD) cocktails, and the use of non-traditional ingredients.
Which Factors Are Boosting Growth In The Craft Spirits Market?
The expansion of the craft spirits market is anticipated due to the increasing number of craft distilleries. These distilleries create craft spirit using a distillation method with locally sourced ingredients, which in turn, escalates the demand for craft spirits. For example, as per the Spirit Business, an American magazine firm, Craft spirits sales in the United States grew by 6.9% in 2022, though the growth rate was slower than the previous year, with volume and value normalising post-pandemic. Thus, the rise in craft distilleries is stimulating the market growth of craft spirits.
What Key Areas Define The Segmentation Of The Global Craft Spirits Market?
The craft spirits market covered in this report is segmented –
1) By Type: Whiskey, Gin, Vodka, Brandy, Rum, Other Types
2) By Distillery Capacity: Large Scale Producers, Medium Scale Producer, Small-Scale Producers
3) By Distribution Channel: Off-Trade Channel, On-Trade Channels
Subsegments:
1) By Whiskey: American Whiskey, Irish Whiskey, Scotch Whisky, Canadian Whisky, Japanese Whisky
2) By Gin: London Dry Gin, Old Tom Gin, Plymouth Gin, Flavored Gin
3) By Vodka: Traditional Vodka, Flavored Vodka, Organic Vodka
4) By Brandy: Cognac, Armagnac, Fruit Brandy
5) By Rum: White Rum, Dark Rum, Spiced Rum, Flavored Rum
6) By Other Types: Tequila, Mezcal, Liqueurs, Absinthe
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How Are Emerging Trends Reshaping The Dynamics Of The Craft Spirits Market?
The surge in investments in craft spirits constitutes a key trend in the craft spirits industry. Large enterprises in the craft spirits market are searching for opportunities to secure their place. For example, in March 2022, Diageo India, a player in the craft spirits market, speculated $200 Million (?200 crores) in their own craft spirits venture. Similarly, United Spirits, another India-based beverage company in the same market, invested $31.50 Million (Rs31.50 Crore) in craft gin manufacturer, Nao Spirits and Beverages. Through this investment, United Spirits paves its way into the Indian provenance premium craft gin segment, reinforced by its world-renowned premium and luxury gin portfolio, featuring Gordon's and Tanqueray.
Who Are the Key Players in the Craft Spirits Market?
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
What Is The Most Dominant Region In The Craft Spirits Market?
North America was the largest region in the craft spirits market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the craft spirits market report include Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
