Craft Spirits Market Research Report By Spirit Type (Whiskey, Vodka, Rum, Tequila, Gin), By Aging Process (Barrel-Aged, Column-Distilled, Un-Aged), By Distribution Channel (On-Premise, Off-Premise, Online), By Flavor Profile (Smooth, Spicy, Floral, Citrus, Woody), By Target Audience (Millennials, Generation X, Baby Boomers, Affluent Consumers, Cocktail Enthusiasts) and By Regional (North America, Europe, South America, Asia Pacific, Middle East and Africa) - Forecast to 2032

Global Craft Spirits Market Overview

Craft Spirits Market Size was estimated at 17.93 (USD Billion) in 2022. The Craft Spirits Industry is expected to grow from 18.47(USD Billion) in 2023 to 24.1 (USD Billion) by 2032. The Craft Spirits Market CAGR (growth rate) is expected to be around 3.01% during the forecast period (2024 - 2032).

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Key Craft Spirits Market Trends Highlighted

Increasing consumption of premium craft spirits is also an emerging trend in the market. The demand for such products comes from the visible changes in the mindset of an average consumer who has begun to enjoy the beauty and richness of craft spirits in their myriad varieties.

There is also the fact that craft spirits are becoming more popular cocktail components. Innovative bartenders continue to search for more creative ways of using craft spirits in their cocktails, and this will call for more categories of spirits that do not have a generic taste but come in various unique flavors. This trend is clearly visible with regard to the rise of craft gin, which is easier to incorporate into cocktails and has become widely in demand over the past few years.

Moreover, the development of the craft spirits market is also associated with the appearance of imported craft distilleries in different parts of the world. Such globalization is caused by the increased interest of the audience in different kinds of spirits as well as the opportunity to try new tastes and styles. Craft spirits have been experiencing a more heightened growth and are poised to be available in modern society.

Craft Spirits Market Drivers

Rising Demand for Premium and Artisanal Spirits

The market for craft spirits is growing steadily. The majority of consumers are willing to consume unique products, allowing them to experience a fresh flavor or a new taste. In such a way, to meet the market’s demand, craft spirits are generally produced in small batches using traditional methods. The market’s growth is stipulated by such factors as increasing disposable income, changing consumer preferences, and the growing popularity of local and craft products.The market is anticipated to grow over the forecast period because the crafts spirit market industry is anticipated to grow its sales volumes due to the increasing popularity of premium and local spirits.

Growing Popularity of Craft Cocktails

The growing popularity of craft cocktails has also contributed to the growth of the craft spirits market. Craft cocktails often feature unique and innovative ingredients, including craft spirits. As consumers become more adventurous in their cocktail choices, they are increasingly seeking out craft spirits that can add complexity and flavor to their drinks. The rising popularity of craft cocktails is expected to continue to drive demand for craft spirits in the coming years.

Expansion of Distribution Channels

With the increased distribution of craft spirits through various channels such as online retailers, specialized stores, and bars and restaurants, it is right to say that they have become more accessible to consumers. Undoubtedly, such access facilitates a chance for more people to try the products. As a result of the easier access to craft spirits, the sales have been growing. Notably, it is expected that the overall stronger availability of craft spirits will continue driving their demand in the foreseeable future.

Craft Spirits Market Segment Insights

Craft Spirits Market Spirit Type Insights

The Craft Spirits Market is classified based on Spirit Type into Whiskey, Vodka, Rum, Tequila, Gin, and Others. The Whiskey segment is estimated to dominate the market throughout the forecast period as it accounted for a market share of 35.4% in 2023. The increasing demand for craft whiskey, especially among the younger population, along with the growing availability of premium and flavored whiskeys, is the key factor driving the growth of this segment. The Vodka segment is another major segment, which is anticipated to hold a market share of 22.1% in 2023.The rising demand for premium and flavored vodkas across emerging markets is driving this segment. Furthermore, the increasing utilization of vodka in cocktails and mixed drinks is the other major factor supporting the growth of the segment. Other significant segments in the Craft Spirits Market are Rum, Tequila, and Gin. The Rum segment is expected to grow at a CAGR of 3.5% throughout the forecast period, owing to its increasing demand in the tropical and coastal regions. Tequila is another key segment, which is rapidly growing across the world, especially among younger people.This segment is expected to grow at a CAGR of 3.7% throughout the forecast period. The popularity of gin is also regaining, even though its growth is relatively slower compared to the other segments. The increasing demand for craft gins in exotic and unheard flavor profiles is driving this segment, which is anticipated to grow at a CAGR of 4.1% throughout the forecast period.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Craft Spirits Market Aging Process Insights

The Craft Spirits Market revenue is growing significantly, driven by the increasing demand for premium spirits. The market is segmented based on the aging process, with barrel-aged spirits accounting for the largest share. Barrel-aged spirits are characterized by their rich flavor and aroma, which are developed during the aging process in wooden barrels. Column-distilled spirits, on the other hand, are produced using a continuous distillation process, resulting in a lighter and more neutral flavor profile. Un-aged spirits, as the name suggests, are not aged in barrels and offer a fresh and vibrant taste.The market growth for barrel-aged spirits is expected to continue in the future, as consumers seek out more complex and flavorful spirits.

Craft Spirits Market Distribution Channel Insights

The distribution channel segment plays a crucial role in the Craft Spirits Market, influencing market growth and revenue generation. The market is primarily segmented into three major distribution channels on-premise, off-premise, and online. On-premise distribution involves the sale of craft spirits directly to consumers through establishments such as bars, restaurants, and nightclubs. This channel accounts for a significant portion of the Craft Spirits Market revenue, driven by the growing popularity of craft cocktails and the desire for unique drinking experiences.Off-premise distribution, on the other hand, encompasses the sale of craft spirits through retail outlets such as liquor stores, supermarkets, and convenience stores. This channel has experienced steady growth in recent years due to the increasing availability of craft spirits and the convenience it offers to consumers. Online distribution, while still a relatively nascent channel, has gained traction in the Craft Spirits Market. E-commerce platforms and online retailers have enabled consumers to purchase craft spirits from the comfort of their homes, expanding the market's reach and providing greater accessibility.The online channel is expected to continue its growth trajectory, driven by the increasing penetration of e-commerce and the growing consumer preference for online shopping. These distribution channels collectively contribute to the overall growth and dynamics of the Craft Spirits Market.

Craft Spirits Market Flavor Profile Insights

The Flavor Profile segment plays a crucial role in driving the Craft Spirits Market revenue. Consumers exhibit a growing preference for distinct and complex flavor profiles, leading to the popularity of various sub-segments within this segment. Smooth flavors, characterized by a velvety and well-rounded, hold a significant market share. Spicy flavors, known for their warmth and peppery notes, are gaining traction among adventurous consumers. Floral flavors, with their delicate and fragrant characteristics, cater to a niche segment of consumers seeking unique experiences.Citrus flavors, offering a refreshing and invigorating taste, have a strong presence in the market. Woody flavors, reminiscent of oak barrels and imparting a distinct aroma, are highly valued by connoisseurs. The Craft Spirits Market segmentation based on Flavor Profile provides valuable data and insights for industry stakeholders, enabling them to tailor their offerings to meet the evolving preferences of consumers and drive market growth.

Craft Spirits Market Target Audience Insights

Millennials, Generation X, Baby Boomers, Affluent Consumers, and Cocktail Enthusiasts are the key target audience segments for the Craft Spirits Market. Millennials, born between 1981 and 1996, represent a significant portion of the market, contributing to its growth. Their preference for unique and artisanal spirits, coupled with their willingness to experiment with new flavors, drives demand. Generation X, born between 1965 and 1980, also plays a crucial role, with a growing interest in premium spirits and a desire for quality over quantity.Baby Boomers, born between 1946 and 1964, have a strong disposable income and are increasingly seeking out high-end craft spirits, contributing to the market's revenue growth. Affluent consumers, regardless of age, are a lucrative target audience, seeking exclusive and limited-edition spirits that align with their discerning tastes. Cocktail enthusiasts, passionate about mixology and experimentation, are another key segment, driving demand for craft spirits with distinct flavor profiles and versatility in cocktail creations.

Craft Spirits Market Regional Insights

The Craft Spirits Market is segmented into North America, Europe, the Asia Pacific, South America, and the Middle East and Africa. In 2023, North America held the largest market share, with an estimated revenue of USD 6.97 billion. Europe followed with a market share of USD 6.06 billion. The Asia Pacific region is expected to witness the highest growth rate over the forecast period, with a CAGR of 3.81%. This growth is attributed to the increasing disposable income and the growing popularity of craft spirits in countries such as China, India, and Australia.The South American region is also expected to witness a significant growth rate, with a CAGR of 3.54%. The Middle East and Africa region is expected to grow at a moderate rate, with a CAGR of 2.89%.

Source Primary Research, Secondary Research, MRFR Database and Analyst Review

Craft Spirits Market Key Players And Competitive Insights

Major players in the Craft Spirits Market industry are focusing on product innovation and expansion into new markets to gain a competitive edge. They are investing in research and development to create unique and innovative products that cater to changing consumer preferences. Leading Craft Spirits Market players are also expanding their distribution networks and partnering with retailers and distributors to increase their reach and visibility. Craft Spirits Market development is being driven by the growing demand for premium and artisanal spirits, as consumers become more discerning and seek out unique and flavorful experiences.Diageo, one of the leading players in the Craft Spirits Market, has a strong portfolio of premium and artisanal spirits, including brands such as Johnnie Walker, Smirnoff, and Tanqueray. The company is focused on product innovation and has recently launched several new products, including a limited-edition Johnnie Walker Blue Label Ghost and Rare Port Ellen Scotch Whisky. Diageo is also expanding its distribution network and has recently entered new markets, such as China and India.Pernod Ricard, another leading player in the Craft Spirits Market, has a portfolio of premium and artisanal spirits, including brands such as Absolut Vodka, Chivas Regal Scotch Whisky, and Beefeater Gin. The company is focused on product innovation and has recently launched several new products, including a limited-edition Absolut Elyx Single Estate Vodka. Pernod Ricard is also expanding its distribution network and has recently entered new markets, such as Brazil and Mexico.

Key Companies in the Craft Spirits Market Include

• Bacardi Limited


• Halewood Wines Spirits


• Tito's Handmade Vodka


• Campari Group


• Sazerac Company, Inc.


• BrownForman Corporation


• William Grant Sons


• Edrington Group


• Diageo


• Gruppo Montenegro


• Constellation Brands


• Beam Suntory, Inc.


• Luxco, Inc.


• Pernod Ricard

Craft Spirits Market Industry Developments

The craft spirits market is projected to grow from USD 18.47 billion in 2023 to USD 24.1 billion by 2032, exhibiting a CAGR of 3.01% during the forecast period. Increasing consumer preference for premium and authentic spirits, growing disposable income, and the rising popularity of craft cocktails are driving market growth.Recent developments include the launch of innovative flavors and collaborations between craft distilleries and renowned chefs. For instance, in 2023, FEW Spirits released a limited-edition whiskey finished in Japanese Mizunara oak casks, while St. George Spirits partnered with chef Dominique Crenn to create a gin inspired by her Michelin-starred restaurant Atelier Crenn. Such initiatives cater to the evolving tastes of discerning consumers and contribute to the overall growth of the craft spirits market.

Craft Spirits Market Segmentation Insights

• Craft Spirits Market Spirit Type Outlook
  
  
  
  • Whiskey
  
  
  • Vodka
  
  
  • Rum
  
  
  • Tequila
  
  
  • Gin
  
  
  
  


• Craft Spirits Market Aging Process Outlook
  
  
  
  • Barrel-Aged
  
  
  • Column-Distilled
  
  
  • Un-Aged
  
  
  
  


• Craft Spirits Market Distribution Channel Outlook
  
  
  
  • On-Premise
  
  
  • Off-Premise
  
  
  • Online
  
  
  • Craft Spirits Market Flavor Profile Outlook
  
  
  • Smooth
  
  
  • Spicy
  
  
  • Floral
  
  
  • Citrus
  
  
  • Woody
  
  
  
  


• Craft Spirits Market Target Audience Outlook
  
  
  
  • Millennials
  
  
  • Generation X
  
  
  • Baby Boomers
  
  
  • Affluent Consumers
  
  
  • Cocktail Enthusiasts
  
  
  
  


• Craft Spirits Market Regional Outlook
  
  
  
  • North America
  
  
  • Europe
  
  
  • South America
  
  
  • Asia Pacific
  
  
  • Middle East and Africa