New York, United States, Feb. 19, 2024 (GLOBE NEWSWIRE) -- The word "craft" is used to describe any production, degree of quality, or activity other than marketing. Craft spirit is more of a trade term; there is no agreed-upon definition. Craft spirits are typically created by a small distillery by hand using locally processed materials and ingredients. Craft spirits are made using fruit infusions and spirits with unique flavors not typically found in spirits. Customers mostly consider it to be a luxury good.
According to Straits Research, “The global craft spirits market size was valued at USD 17,434.1 million in 2022. It is expected to reach USD 43,206.49 million by 2031, growing at a CAGR of 10.61% during the forecast period (2023–2031).”
Increased Premiumization and Innovative Packaging Drives the Global Market
Consumer preferences in the sizable liquor market, closely monitored by significant players for the past ten years, have recently changed. Customers prefer specialized brands or companies that can provide a more luxurious experience and a good with authenticity, personality, and storytelling. Smaller brands have been able to carve out a niche in the market under study thanks to it. Craft spirits sales have increased over time, and with that growth has come brand innovation in packaging styles that set them apart from the competition. Appealing spirit bottles and marketing materials that catch their attention on the shelf frequently convince customers to try a product. Brands competing in the space are investing in marketing and branding from the beginning because it continues to be the most effective tool for grabbing consumers' attention and encouraging product loyalty.
RTD Spirits and Cocktails Made with Homemade Spirits Create the Tremendous Opportunities
Premiumization is the primary trend that is impacting the world market for alcoholic beverages. As a result, there are now many more craft manufacturers and brands in almost every sector. Customers will pay more for a product that offers an authentic experience. Due to the expansion of brewpubs and a rise in consumer interest in manufacturing, craft spirits are currently popular. The RTD cocktail market is a thriving category that is moving in a more premium direction thanks to some particularly notable launches in the last year. Pre-mixed stiff drinks are rapidly growing, and more local craft spirits producers are also making bottled or canned cocktails. Europe continues to be swept up in the modern cocktail movement.
Report Scope
| Study Period | 2019-2031 | CAGR | 10.61% |
| Historical Period | 2019-2021 | Forecast Period | 2023-2031 |
| Base Year | 2022 | Base Year Market Size | USD 17,434.1 Million |
| Forecast Year | 2031 | Forecast Year Market Size | USD 43206.49 Million |
| Largest Market | North America | Fastest Growing Market | Asia-Pacific |
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Regional Analysis
North America, the largest revenue contributor, is anticipated to grow at a CAGR of 9.35% during the forecast period. Craft spirits are becoming more and more well-liked due to the trend toward experimental drinking. In the US, craft distilling is no longer a specialized sector. There are currently nearly 2,000 distilleries across the country, with the west coast having the highest concentration. It is a market worth millions of dollars. These metrics—market share, overall sales and revenue, investments, and employment—are increasing quickly. The demand for high-end, limited-edition spirits releases and the abundance of craft cocktail bars in the nation are other factors driving market expansion; regional supermarkets collaborate with craft spirits producers to launch exclusive product lines. For instance, one of the biggest supermarket chains in the nation, Kroger Company 2017, and Hall of Fame Spirits® proudly announced their new partnership. This allows them to sell their handcrafted, extremely expensive, small-batch vodka in stores.
Asia-Pacific is anticipated to grow at a CAGR of 10.98% and generate USD 15,797.07 million during the forecast period; Chinese traditional spirit baijiu is very popular in the country's craft spirits market. Moutai, Chivas, and Martell are frequently found on Chinese tables. In the western craft spirit market, whiskey, vodka, and brandy are noted as having potential prominence in demand. Some of China's most well-known online retail platforms for selling craft spirits include Ele. me, JD, Taobao/Tmall, and Meituan. In the Chinese craft spirits market, brands like Moutai for baijiu, Martell for brandy, Absolut for vodka, Chivas for whisky, and Bacardi for rum are well-known.
Key Highlights
- Based on type, the global craft spirits market is bifurcated into whiskey, gin, vodka, brandy, and rum. The whiskey segment is the highest contributor to the market and is expected to grow at a CAGR of 9.77% during the forecast period.
- Based on distribution channels, the global craft spirits market is bifurcated into on-trade and off-trade channels. The on-trade channel segment is the highest contributor to the market and is expected to grow at a CAGR of 8.37% during the forecast period.
- North America is the most significant revenue contributor and is expected to grow at a CAGR of 9.35% during the forecast period.
Competitive Players
The global craft spirits market’s major key players are Pernod Ricard, Rémy Cointreau, Diageo PLC, Hotaling and Co., Davide Campari-Milano NV, William Grant and Sons Limited, Rogue Ales and Spirits, Constellation Brands Inc., Bacardi Limited, Suntory Holdings Ltd, Ian Macleod Distilleries Ltd, and Jw Distillers Limited.
Market News
- In November 2022, Pernod Ricard announced a partnership with Professional Bar Training, an online education program with headquarters in the UK, to advance the careers of bar professionals worldwide.
- In November 2022, Diageo acquired Balcones Distilling (also known as "Balcones"), a Texas-based craft distiller and one of the country's top producers of American single malt whiskey.
Global Craft Spirits Market: Segmentation
By Type
- Whiskey
- Gin
- Vodka
- Brandy
- Rum
By Distribution Channel
- On-Trade Channels
- Off-Trade Channels
By Regions
- North America
- Europe
- Asia-Pacific
- South America
- The Middle East and Africa
Get Detailed Market Segmentation @ https://straitsresearch.com/report/craft-spirits-market/segmentation
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