Market Size of Craft Spirits Industry
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*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).
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Whiskey | |
Gin | |
Vodka | |
Brandy | |
Rum | |
Other Types |
Distribution Channel | |
On-trade Channels | |
Off-trade Channels |
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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.
Craft Spirits Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.2 Market Restraints
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1.3 Porter's Five Forces Analysis
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1.3.1 Bargaining Power of Suppliers
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1.3.2 Bargaining Power of Buyers
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1.3.3 Threat of New Entrants
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1.3.4 Threat of Substitute Products
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1.3.5 Degree of Competition
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Whiskey
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2.1.2 Gin
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2.1.3 Vodka
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2.1.4 Brandy
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2.1.5 Rum
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2.1.6 Other Types
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2.2 Distribution Channel
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2.2.1 On-trade Channels
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2.2.2 Off-trade Channels
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2.3 Geography
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2.3.1 North America
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2.3.1.1 United States
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2.3.1.2 Canada
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2.3.1.3 Mexico
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2.3.1.4 Rest of North America
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2.3.2 Europe
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2.3.2.1 United Kingdom
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2.3.2.2 Germany
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2.3.2.3 Spain
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2.3.2.4 France
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2.3.2.5 Italy
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2.3.2.6 Russia
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2.3.2.7 Rest of Europe
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2.3.3 Asia-Pacific
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2.3.3.1 China
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2.3.3.2 Japan
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2.3.3.3 India
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2.3.3.4 Australia
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2.3.3.5 Rest of Asia-Pacific
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2.3.4 South America
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2.3.4.1 Brazil
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2.3.4.2 Argentina
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2.3.4.3 Rest of South America
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2.3.5 Middle East and Africa
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2.3.5.1 South Africa
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2.3.5.2 United Arab Emirates
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2.3.5.3 Rest of Middle East and Africa
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Craft Spirits Market Size FAQs
How big is the Craft Spirits Market?
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.
What is the current Craft Spirits Market size?
In 2024, the Craft Spirits Market size is expected to reach USD 19.35 billion.