Craft Spirits Market

Craft Spirits Market Size:

The global craft spirits market size reached USD 23.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach USD 184.7 Billion by 2032, exhibiting a growth rate (CAGR) of 25.7% during 2024-2032. The market is witnessing substantial expansion, mainly driven by heightening customer requirement for artisanal, high-quality beverages. Moreover, increasing demand for authenticity, unique flavors, and small-batch production are major factors influencing the market growth, along with amplifying interest in sustainable and local craft distilleries worldwide.

Craft spirit refers to handcrafted alcohol produced by a small distillery that uses locally sourced ingredients and materials. It is manufactured by fermenting various grains, such as wheat, barley, rye, and maize. It comprises a wide variety of fruit infusions and uniquely flavored spirits like gin, liqueur, moonshine, rum, tequila, vodka, and whiskey. It is stored at the room temperature or cool temperature settings to preserve the taste and quality for an extended period. Craft spirit contains various preservatives, such as sulfur dioxide, sorbic acid, velcorin, pimaricin or natamycin, and ascorbic acid, to increase the shelf life, reduce bacterial spoilage, and prevent the formation of any undesirable aromas, flavors, and colors in the product during storage. It is extensively utilized in preparing fusion drinks and cocktails by combining it with ice, fruit juices, syrups, and fruit pulps. Furthermore, as it is often gifted on special occasions and collected as a sign of luxury, the demand for the craft spirit is rising across the globe.

Craft Spirits Market Trends:

Increasing Consumer Demand for Authenticity and Artisanal Products

A key trend driving the global craft spirits market is the heightening customer preference for artisanal, authentic beverages. Consumers are currently shifting from mass-produced spirits toward small-batch products that focus craftmanship, unique flavors, and conventional production strategies. Moreover, this need for authenticity streamlines with expansive customer trends preferring locally produced, handcrafted goods. As per industry reports, globally, around 60% bartenders emphasize on using local ingredients for craft spirits. In addition, craft distilleries are actively capitalizing on this trend by endorsing their heritage, transparent ingredient sourcing, and specialized production methodologies, appealing a loyal consumer base looking for exclusive drinking experiences.

Expansion of Craft Spirits in International Markets 

Craft spirits, initially gaining momentum in selected developed economies, are now expanding into international markets, particularly in Asia Pacific. As per industry reports, in 2023, Chinese brands accounted for 69.4% of the value share among the top 50 global spirit brands. Notably, six of the top ten spirits brands worldwide are China-based, with five of these being baijiu brands, according to value metrics. Moreover, amplifying disposable incomes, evolving customer preferences in emerging markets, and heightening interest in exclusive and high-end beverages, are notably bolstering the craft spirits market demand. In addition, as international markets become more accepting to craft products, distilleries are emphasizing on adapting their offerings to local tastes while sustaining the authenticity and craftsmanship that characterize the craft spirits category, opening up new growth opportunities globally.

Magnifying Emphasis on Eco-Friendly and Sustainable Production Practices

Sustainability is rapidly emerging as a crucial key trend within the global craft spirits market, primarily because consumers are currently valuing environmentally responsible brands, compelling distilleries to adopt eco-friendly production practices, such as using renewable energy, reducing water consumption, and sourcing organic ingredients. Moreover, packaging advancements, encompassing lightweight bottles and recycled substances, are also gaining momentum as brands strive to minimize their carbon footprint. For instance, in July 2023, Bruichladdich Distillery redesigned its popular The Classic Laddie to significantly lower the carbon emission of single malt's packaging by 65%. The new design incorporates 60% recycled glass, making the bottle 32% lighter and reducing the brand’s environmental impact by enabling more efficient transport with fewer vehicles and more bottles per pallet. Furthermore, this notable inclination toward sustainability not only addresses the customer expectations but also helps craft distilleries differentiate themselves in an increasingly competitive market.

Craft Spirits Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on product and distribution channel.

Breakup by Product:

• Whiskey
• Vodka
• Gin
• Rum
• Brandy
• Liqueur
• Others
   

Whiskey accounts for the majority of the market share

The report has provided a detailed breakup and analysis of the craft spirits market based on the product. This includes whisky, vodka, gin, rum, brandy, liqueur, and others. According to the report, whiskey represented the largest segment.

Breakup by Distribution Channel:

• On-Trade
• Off-Trade
   

On-trade holds the largest share of the industry

A detailed breakup and analysis of the market based on the distribution channel have also been provided in the report. This includes on-trade and off-trade. According to the report, on-trade accounted for the largest market share.

Regional Insights:

• North America
  • United States
  • Canada
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Others
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America leads the market, accounting for the largest craft spirits market share

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represents the largest regional market for craft spirits. Some of the factors driving the North America craft spirits market included the growing construction of clubs and pubs, rising number of distilleries, increasing consumption of alcoholic beverages, etc.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global craft spirits market. Competitive analysis such as market structure, market share by key players, player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided. Some of the companies covered include:

• Bacardi Limited
• Campari Group (Lagfin S.C.A.)
• Constellation Brands, Inc.
• Copper Fox Distillery
• Diageo plc
• Heaven Hill Distilleries, Inc.
• Hotaling & Co.
• Pernod Ricard
• Rogue Ales & Spirits
• Sibling Distillery Limited
• William Grant and Sons Ltd
• Woodinville Whiskey (LVMH)
   

Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Craft Spirits Market News:

• In May 2024, Barrell Craft Spirits announced its expansion in the Asian market by launching its spirits product line in South Korea through a strategic partnership with UOT, a distribution firm, for both off- and on-trade in South Korea.
• In March 2024, New Riff Distilling, a craft spirits company, strengthened its presence in the U.S. market by expanding the distribution of its ryes and bourbons, including 100% malted rye whiskey and single barrel bourbon, to Georgia, Louisiana, North Carolina, and South Carolina.

Craft Spirits Market Report Scope:

Key Questions Answered in This Report:

• How has the global craft spirits market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global craft spirits market?
• What is the impact of each driver, restraint, and opportunity on the global craft spirits market?
• What are the key regional markets?
• Which countries represent the most attractive craft spirits market?
• What is the breakup of the market based on the product?
• Which is the most attractive product in the craft spirits market?
• What is the breakup of the market based on the distribution channel?
• Which is the most attractive distribution channel in the craft spirits market?
• What is the competitive structure of the market?
• Who are the key players/companies in the global craft spirits market?

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the craft spirits market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global craft spirits market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assists stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the craft spirits industry and its attractiveness.
• The competitive landscape allows stakeholders to understand their competitive environment and provides insight into the current positions of key players in the market.