Craft Spirits Market Size (2024 - 2029)

The craft spirits market is experiencing significant growth, driven by changing consumer preferences and an increasing demand for flavored and premium spirits. Despite challenges posed by the COVID-19 pandemic, which led to a temporary decline due to restrictions on bars and retail outlets, the market has rebounded. This resurgence is attributed to a younger demographic's enthusiasm for craft spirits and the introduction of innovative products that emphasize quality and artisanal production. The market's expansion is further supported by creative packaging and cocktail applications that enhance consumer appeal.

Market Size of Craft Spirits Industry

Craft Spirits Market Summary
Study Period 2019 - 2029
Market Size (2024) USD 19.35 Billion
Market Size (2029) USD 31.89 Billion
CAGR (2024 - 2029) 10.51 %
Fastest Growing Market Europe
Largest Market North America
Market Concentration Low

Major Players

Craft Spirits Market Major Players

*Disclaimer: Major Players sorted in no particular order

Craft Spirits Market Analysis

The Craft Spirits Market size is estimated at USD 19.35 billion in 2024, and is expected to reach USD 31.89 billion by 2029, growing at a CAGR of 10.51% during the forecast period (2024-2029).

Due to COVID-19 restrictions, the craft spirit market faced a huge loss, shut down all the bars, restaurants, and retail shops, and sales were reduced. Import and export of goods between the countries were also restricted, due to which the market players faced significant issues. After the pandemic, however, the market slowly grew owing to the change in taste preferences and a massive demand for different flavored spirits. The growing number of younger people consuming craft spirits was driving the market. For instance, In January 2022, Bacardi announced the launch of a new non-alcoholic spirit brand Palette, which was created, in collaboration with Amsterdam-based bartenders and designed with cocktails.

The demand for ethnic premium, super-premium, and flavored spirits, which include craft and artisanal varieties, increased among global consumers. This increased demand fuelled the growth of the craft spirits market during the study period. The craft spirits boom introduced many new products that have successfully carved out a niche for themselves by leveraging package designs that promise quality through evocative design and hand-crafted sensibilities. The people born between the 1980s and 2000s are a large portion of consumers who visit bars, hotels, and pubs more often; therefore, they are a large number of buyers for the market. People are becoming more conscious and inclined to step out of their comfort level, which is why major producers are modifying and innovating by creating accessible, fun, and delicious spirits with innovative packaging. Thus, beverage professionals have been incorporating these spirits in cocktails through creative applications to cater to the rising demand from consumers.

Craft Spirits Industry Segmentation

Craft spirits are hand-crafted and manufactured by a small distillery using locally sourced materials and ingredients. The craft spirits market is segmented based on type, distribution, and geography. Based on type, the market is segmented into whiskey, gin, vodka, brandy, rum, and other types, by distribution channel into on-trade channels and off-trade channels, and by geography into North America, Europe, Asia-Pacific, South America, and Middle East and Africa. For each segment, the market sizing and forecast have been done based on value (in USD million).

Type
Whiskey
Gin
Vodka
Brandy
Rum
Other Types
Distribution Channel
On-trade Channels
Off-trade Channels
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
United Kingdom
Germany
Spain
France
Italy
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
South Africa
United Arab Emirates
Rest of Middle East and Africa
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Craft Spirits Market Size Summary

The craft spirits industry is experiencing a robust expansion, driven by shifting consumer preferences and an increasing demand for flavored and artisanal spirits. The market, which faced significant setbacks due to COVID-19 restrictions, has rebounded as younger consumers, particularly those born between the 1980s and 2000s, have shown a growing inclination towards craft spirits. This demographic shift has encouraged major producers to innovate and offer accessible, fun, and delicious spirits with unique packaging. The trend towards natural and organic flavors, along with clean-label ingredients, has further fueled the market's growth. Craft spirits, including gin, rum, brandy, tequila, whiskey, and flavored liqueurs, are becoming more popular in social and corporate gatherings, contributing to the industry's development.

North America dominates the craft spirits market, supported by a rising number of craft distilleries and frequent product launches. The region's demand for ethnic premium and super-premium spirits is prompting imports, further boosting market growth. The US, in particular, is witnessing a surge in cocktail culture, with giant manufacturers offering innovative cocktails and producing super-premium tequila and vodka. The market is highly competitive, with key players like Rémy Cointreau, William Grant & Sons Limited, Pernod Ricard, Diageo PLC, and Rogue Ales & Spirits leading the charge through product innovations, mergers, acquisitions, and expansion strategies. The ongoing demand for craft spirits is expected to sustain market activity, supported by advanced distribution networks and manufacturing expertise.

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Craft Spirits Market Size - Table of Contents

  1. 1. MARKET DYNAMICS

    1. 1.1 Market Drivers

    2. 1.2 Market Restraints

    3. 1.3 Porter's Five Forces Analysis

      1. 1.3.1 Bargaining Power of Suppliers

      2. 1.3.2 Bargaining Power of Buyers

      3. 1.3.3 Threat of New Entrants

      4. 1.3.4 Threat of Substitute Products

      5. 1.3.5 Degree of Competition

  2. 2. MARKET SEGMENTATION

    1. 2.1 Type

      1. 2.1.1 Whiskey

      2. 2.1.2 Gin

      3. 2.1.3 Vodka

      4. 2.1.4 Brandy

      5. 2.1.5 Rum

      6. 2.1.6 Other Types

    2. 2.2 Distribution Channel

      1. 2.2.1 On-trade Channels

      2. 2.2.2 Off-trade Channels

    3. 2.3 Geography

      1. 2.3.1 North America

        1. 2.3.1.1 United States

        2. 2.3.1.2 Canada

        3. 2.3.1.3 Mexico

        4. 2.3.1.4 Rest of North America

      2. 2.3.2 Europe

        1. 2.3.2.1 United Kingdom

        2. 2.3.2.2 Germany

        3. 2.3.2.3 Spain

        4. 2.3.2.4 France

        5. 2.3.2.5 Italy

        6. 2.3.2.6 Russia

        7. 2.3.2.7 Rest of Europe

      3. 2.3.3 Asia-Pacific

        1. 2.3.3.1 China

        2. 2.3.3.2 Japan

        3. 2.3.3.3 India

        4. 2.3.3.4 Australia

        5. 2.3.3.5 Rest of Asia-Pacific

      4. 2.3.4 South America

        1. 2.3.4.1 Brazil

        2. 2.3.4.2 Argentina

        3. 2.3.4.3 Rest of South America

      5. 2.3.5 Middle East and Africa

        1. 2.3.5.1 South Africa

        2. 2.3.5.2 United Arab Emirates

        3. 2.3.5.3 Rest of Middle East and Africa

Craft Spirits Market Size FAQs

The Craft Spirits Market size is expected to reach USD 19.35 billion in 2024 and grow at a CAGR of 10.51% to reach USD 31.89 billion by 2029.

In 2024, the Craft Spirits Market size is expected to reach USD 19.35 billion.

Craft Spirits Industry Size & Share Analysis - Growth Trends & Forecasts (2024 - 2029)