Europe Craft Spirits Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Market Size (2024) | USD 3.83 Billion |
| Market Size (2029) | USD 6.95 Billion |
| CAGR (2024 - 2029) | 12.66 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Europe Craft Spirits Market Analysis
The Europe Craft Spirits Market size is estimated at USD 3.83 billion in 2024, and is expected to reach USD 6.95 billion by 2029, growing at a CAGR of 12.66% during the forecast period (2024-2029).
The demand for ethnic premium, super-premium spirits, and flavored spirits, which include craft and artisanal varieties, increased among European consumers. This fuelled the growth of the craft spirits market in the past couple of years. The craft spirits boom has flooded the market with thousands of new brands that have successfully carved out a niche for themselves by leveraging package designs that promise quality through evocative design and hand-crafted sensibilities. An increasing number of European consumers are looking for new, more exciting offerings compared to their usual spirit options, thus pushing up revenue generation in the craft spirits market.
The craft spirits movement, with its independent creative inventions manufactured using traditional methods, emerged out of the pioneering culture of wine and its tight link with connoisseurship, paired with customers who want to know what they are drinking. With the introduction of a new class of craft spirits that comprises whiskey, gin, vodka, rum, and a lengthy list of liqueurs, the spirits industry is now anticipated to go through the same metamorphosis. Due to certain market segments, such as millennials interested in alcoholic beverages, who demand new flavors and to stay current with and be well informed about the ingredients and intricate traditional production methods of these formulas, certain propositions are gaining ground and have become popular.
Europe Craft Spirits Market Trends
Increasing Number of Microbreweries Elevating the Demand for Craft Spirits
The ongoing premiumization of spirits and commercialization of micro-distilleries in the region are the factors accelerating the growth of the craft spirits market. There is a tradition of craft distilling in Germany at a grass-roots level. The market is being pushed by the rise in interest in fortified wine's novel and unique flavors. According to the Office for National Statistics (UK), the sales value of spirits distilleries amounted to approximately GBP 5,146 million last year. Most consumers across Europe are beginning to drink alcohol that is "less but better," typically with increased barley and malt percentages. To increase their global footprint and gain access to the premium alcoholic beverage market, the leading market players are strategically acquiring breweries to diversify their product offerings.
Craft spirits have been steadily expanding their market share as more independent distilleries open their doors to offer a wide range of products. The primary growth factor is thought to be the rising popularity of artisan spirits among consumers, particularly the younger demographic. The need for variety, more disposable income, a preference for flavor, and the quality of the spirit are all factors influencing the trend toward artisan spirits consumption. The rise in consumer need for variety is inextricably linked to the expansion of the craft spirits business.
Strategic Investments by the Market Players
The increasing demand for microbreweries, ethnic premium, super-premium spirits, and flavored spirits, which include craft and artisanal varieties, increased among European consumers. This fuelled the growth of the craft spirits market in the past couple of years. The craft spirits boom has flooded the market with thousands of new brands that have successfully carved out a niche for themselves by leveraging package designs that promise quality through evocative design and hand-crafted sensibilities.
Due to the lucrative opportunities available in the European craft spirits market, various regional and overseas players have been offering their products across Europe to cater to the growing demand for craft spirits across the region. According to the HM Revenue and Customs, in 2021, the annual volume of spirit-based RTD cleared for consumption in the United Kingdom amounted to 35,198 thousand hectoliters of pure alcohol. Hence, owing to the above opportunities, various players have been investing and expanding into the market studied. For example, Radico Khaitan offers Jaisalmer Indian Craft Gin in the United Kingdom to celebrate the origin of the gin and tonic in British Colonial India. The 43% ABV drink utilizes Indian botanical ingredients, such as coriander and vetiver, orange peel, cubeb pepper berries, lemongrass, Darjeeling green tea leaves, and lemon peel, as well as other botanicals, such as angelica root, licorice, and caraway seeds, and juniper berries.
Europe Craft Spirits Industry Overview
The market studied is competitive, with a wide range of brands from micro-distilleries offering artisanal products. The market positioning of players is dynamic, as small, independent distillers are emerging and taking the market share in the region. New brands of craft spirits are launched regularly. The most used corporate strategies used by the players operating in the market include product launches and acquisitions. The top players in the market include Pernod Ricard, Diageo PLC, Suntory Holdings Limited, Bacardi Limited, and Rémy Cointreau. Multinational producers of spirits, on realizing that one of the key consumer appeals of craft spirits is the focus on quality in terms of ingredients, as well as the authenticity, simplicity, and transparency of production, have begun to react with marketing campaigns focusing on these elements.
Europe Craft Spirits Market Leaders
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Pernod Ricard
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Diageo PLC
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Suntory Holdings Limited
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Bacardi Limited
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Rémy Cointreau
*Disclaimer: Major Players sorted in no particular order
Europe Craft Spirits Market News
- Mar 2022: An artisan label based in the United Kingdom, "The Apiarist," announced that it expanded its signature collection of honey-infused spirits by introducing blended aged whiskey.
- Sept 2021: Pernod Ricard announced the acquisition of the UK-based "The Whiskey Exchange," one of the renowned spirits online and physical retailers and a reference. The Whiskey Exchange is an online drinks retailer with a catalog of around 10,000 products. The expansion would help the company penetrate the craft spirits market across Europe.
- Feb 2021: British Honey Company, a manufacturer of honey-infused spirits, acquired Union Distillers in Leicestershire. With the acquisition, British Honey Company planned to expand its product line, strengthen its market position, and grow its clientele to develop and grow a multi-category brand portfolio across many geographies with more access to the United Kingdom's off-trade market.
Europe Craft Spirits Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 Type
5.1.1 Whiskey
5.1.2 Gin
5.1.3 Vodka
5.1.4 Brandy
5.1.5 Rum
5.1.6 Other Types
5.2 Distribution Channel
5.2.1 On-trade Channels
5.2.2 Off-trade Channels
5.3 Geography
5.3.1 Germany
5.3.2 United Kingdom
5.3.3 France
5.3.4 Russia
5.3.5 Spain
5.3.6 Italy
5.3.7 Rest of Europe
6. COMPETITIVE LANDSCAPE
6.1 Most Adopted Strategies
6.2 Market Share Analysis
6.3 Company Profiles
6.3.1 Pernod Ricard
6.3.2 Bacardi Limited
6.3.3 Diageo PLC
6.3.4 Suntory Holdings Limited (Beam SuntoRy Inc.)
6.3.5 The Edrington Group Limited
6.3.6 Davide Campari-Milano NV
6.3.7 Ian MacLeod Distillers Ltd
6.3.8 Rémy Cointreau
6.3.9 Nature HQ Ltd t/a The Apiarist
6.3.10 The British Honey Company (Union Distillers in Leicestershire)
6.3.11 JW Distillers Ltd
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
Europe Craft Spirits Industry Segmentation
Craft spirits are made by hand and typically come from small-scale distilleries that frequently use materials and ingredients that are found locally.
Europe's Craft Spirits Market is Segmented by Type (Whiskey, Gin, Vodka, Brandy, Rum, and Other Types), Distribution Channel (On-trade Channels and Off-trade Channels), and Geography (Germany, United Kingdom, France, Russia, Spain, Italy, and Rest of Europe). The report offers market size and values in (USD Million) during the forecast years for the above segments.
| Type | |
| Whiskey | |
| Gin | |
| Vodka | |
| Brandy | |
| Rum | |
| Other Types |
| Distribution Channel | |
| On-trade Channels | |
| Off-trade Channels |
| Geography | |
| Germany | |
| United Kingdom | |
| France | |
| Russia | |
| Spain | |
| Italy | |
| Rest of Europe |
Europe Craft Spirits Market Research FAQs
How big is the Europe Craft Spirits Market?
The Europe Craft Spirits Market size is expected to reach USD 3.83 billion in 2024 and grow at a CAGR of 12.66% to reach USD 6.95 billion by 2029.
What is the current Europe Craft Spirits Market size?
In 2024, the Europe Craft Spirits Market size is expected to reach USD 3.83 billion.
Who are the key players in Europe Craft Spirits Market?
Pernod Ricard , Diageo PLC , Suntory Holdings Limited , Bacardi Limited and Rémy Cointreau are the major companies operating in the Europe Craft Spirits Market.
What years does this Europe Craft Spirits Market cover, and what was the market size in 2023?
In 2023, the Europe Craft Spirits Market size was estimated at USD 3.40 billion. The report covers the Europe Craft Spirits Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Europe Craft Spirits Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Europe Craft Spirits Industry Report
Statistics for the 2024 Europe Craft Spirits market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Europe Craft Spirits analysis includes a market forecast outlook to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
