Craft Spirits Market Size
Global Craft Spirits Market size reached US$ 28.32 billion in 2024 and is expected to reach US$ 156.97 billion by 2032, growing with a CAGR of 23.87% during the forecast period 2025-2032.
The global craft spirits market has witnessed significant growth, driven by consumers' increasing preference for premium, artisanal beverages. This expansion reflects a broader trend toward unique, high-quality spirits, as consumers seek authenticity and distinctive flavors in their drink choices.
However, the industry faces challenges, including supply chain disruptions and trade tensions. For instance, U.S. bourbon producers have encountered difficulties due to tariffs imposed by the European Union, with potential increases to 50%, impacting both large and small distilleries. Despite these hurdles, the craft spirits market continues to evolve, with regions like the Asia Pacific showing promising growth potential, driven by rising disposable incomes and evolving consumer preferences.
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Market Scope
| Metrics | Details | |
| By Type | Whiskey, Vodka, Gin, Rum, Brandy, Liqueur, Others | |
| By Packaging | Glass Bottles, Cans, Others | |
| By End-User | Household Consumers, Food Service Industry | |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth |
Global Craft Spirits Market Trends
Driver – Rising Consumer Preference for Premium and Artisanal Spirits
The global craft spirits market has experienced significant growth, driven by consumers' increasing preference for premium and artisanal beverages. This trend reflects a worldwide shift towards distinctive, high-quality spirits, as consumers increasingly seek authenticity and unique flavor profiles in their beverage choices. The rise of cocktail culture and the popularity of mixology have further fueled demand for craft spirits globally.
In March 2025, Spaceman Spirits Lab (Spaceman), the pioneering craft spirits company behind the now iconic SAMSARA gin, is set to redefine India’s spirits landscape once again with the launch of AMARA, an Artisanal Pink Vodka. Infused with exotic fruit and delicate floral botanicals, AMARA has been crafted from premium grapes and rice grains and refined through a five-fold distillation process.
Restraint - High Production Costs and Limited Raw Material Availability
High production costs and limited raw material availability are significant challenges for the U.S. craft spirits market. In 2023, the number of active craft distilleries grew by 11.5% to 3,069, indicating a crowded market where securing quality ingredients becomes increasingly competitive.
Additionally, craft distillers face higher federal excise taxes compared to craft brewers and small wineries, with craft spirits producers paying six times more than craft brewers and 17 times more than small wineries for equivalent quantities of alcohol. These financial burdens, coupled with supply chain constraints, hinder the growth and sustainability of small-scale distilleries.
Market Segment Analysis
Gin is Emerging as a Leading Craft Spirit, Driven by Innovation and Premiumization
Gin is emerging as a leading craft spirit due to its versatility, growing consumer interest in botanical flavors, and the rise of mixology culture. Craft distillers are experimenting with unique local ingredients, such as regional herbs, fruits, and spices, to create distinctive gin varieties. Companies are responding by introducing their premium craft spirits to the market, leveraging the growing demand for high-quality, artisanal beverages.
For instance, in December 2023, Diageo India has introduced the citrusy Tanqueray Rangpur and the alluring Tanqueray Mallaca. Tanqueray, renowned for its classic dry gin, introduces two novel variants to elevate the home bar experience during the holiday season. Recognising the burgeoning popularity of gin in diverse cocktails, Diageo India presents Tanqueray Rangpur and Tanqueray Malacca as exceptional additions for enthusiasts seeking distinct flavours.
Market Regional Analysis
Consumer Preference for Premium, Artisanal Alcoholic Beverages in North America.
The North American craft spirits market has experienced notable growth in recent years, reflecting a rising consumer preference for premium, artisanal alcoholic beverages. According to American Craft Spirit Association, in 2022, the U.S. craft spirits market reached 14 million 9-liter cases in retail sales, marking a 6.1% annual increase. This growth, though slower than the 10.4% observed in 2021, indicates sustained interest in craft spirits.
The number of active craft distilleries in the U.S. grew by 2.4% over the last year to 2,753 as of August 2023. This growth rate has slowed compared to the 17.4% increase observed in the previous year (2022), suggesting a maturing market. Despite economic challenges, craft producers invested approximately $880 million in 2022, a 6.5% year-over-year increase, and employed 27,368 full-time domestic workers.
Technology Analysis
The craft spirits industry is embracing technological advancements to enhance production efficiency, quality, and sustainability. A notable innovation is the adoption of blockchain technology to digitalize the spirits supply chain. In April 2024, London-based Proofworks introduced a platform utilizing Web3 and blockchain technologies to monitor production, maturation, and bottling processes. This system assigns a unique digital identity to each cask and bottle, reducing fraud and improving inventory management. Additionally, it provides data on sustainability metrics such as energy and water usage, aiding distilleries in achieving environmental goals.
Major Global Players
The major global players in the market include Diageo plc, Pernod Ricard SA, Davide Campari-Milano N.V., Bacardi Limited, Brown-Forman Corporation, William Grant & Sons Ltd., Beam Suntory Inc., Rémy Cointreau, Mast-Jägermeister SE, and Sazerac Company, Inc.
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Target Audience 2024
- Manufacturers/ Buyers
- Industry Investors/Investment Bankers
- Research Professionals
- Emerging Companies
