Craft Spirits Market Size, Share, Growth Analysis, By Product Type(Whiskey, gin, vodka, rum), By Distribution Channel(On-trade and off-trade), By Region - Industry Forecast 2024-2031

Craft Spirits Market size was valued at USD 1.22 billion in 2022 and is poised to grow from USD 1.28 billion in 2023 to USD 1.94 billion by 2031, at a CAGR of 5.6% during the forecast period (2024-2031).

Craft Spirits Market is highly fragmented and competitive, with a large number of small and medium-sized players operating in the market. Some of the key players in the market compete on the basis of product quality, innovation, brand image, distribution network, and pricing. To gain a competitive edge in the market, companies are focusing on product differentiation and marketing initiatives. Many players are also expanding their distribution network to reach new markets and consumers. In addition, mergers and acquisitions are common in the craft spirits market, as larger players look to acquire smaller companies with unique and innovative products. 'William Grant & Sons Ltd.', 'Diageo plc', 'Pernod Ricard SA', 'Bacardi Limited', 'Rémy Cointreau SA', 'Brown-Forman Corporation', 'Heaven Hill Brands', 'Beam Suntory Inc.', 'The Edrington Group Limited', 'The Boston Beer Company, Inc.', 'Anchor Brewing Company', 'The Brooklyn Brewery', 'Firestone Walker Brewing Company', 'Founders Brewing Co.', 'Great Lakes Brewing Company', 'Highland Brewing Company', 'The Lagunitas Brewing Company', 'New Glarus Brewing Company', 'Sierra Nevada Brewing Co.', 'Stone Brewing Co.', 'In March 2024, Himmaleh Spirits, renowned for its innovative spirits, introduces Bandarful, an artisanal cold-brew coffee liqueur that sets a new standard in the Indian alco-bev landscape. Building on the success of its groundbreaking product, Kumaon and I, India’s first Provincial Dry Gin, the distillery is leading the way in challenging norms within the Indian alcoholic beverage industry. ', 'In February 2024, the Maryland craft beverage industry announced an exciting partnership with TBC, a top-tier branding, advertising, and public relations agency located in Baltimore. This innovative collaboration, led by the Brewers Association of Maryland in conjunction with the Maryland Wineries Association, the Maryland Distillers Guild, and a specialized committee of craft beverage alcohol producers, aims to revolutionize the local beer, wine, spirits, mead, and cider scene in Maryland and the broader mid-Atlantic region.  ', 'In January 2024, ReserveBar, the premier e-commerce platform for premium and luxury beverage alcohol, has formed a strategic technology partnership with delivery.com, a trailblazer in the restaurant delivery industry. Leveraging its advanced technology infrastructure and extensive nationwide distribution network, ReserveBar aims to broaden delivery.com's beverage alcohol product selection and retailer options. This collaboration will empower delivery.com customers to access a wide range of products, from everyday favorites to exclusive releases, craft spirits, luxury bottles, curated gift sets, and personalized engraved bottles.'

A major driver for the craft spirits market is the increasing popularity of cocktail culture. As more people experiment with making cocktails at home, they are looking for high-quality, flavorful spirits that can elevate their drinks. Craft spirits, with their unique flavor profiles and small-batch production, are well-suited to this trend and are often used as the base for cocktails in high-end bars and restaurants.

The latest key trend in the craft spirits market is the increasing demand for organic and natural ingredients in craft spirits. Consumers are becoming more health-conscious and environmentally aware, and are therefore seeking products that are made with natural, non-GMO, and sustainably sourced ingredients. Craft spirits producers are responding to this trend by using organic and natural ingredients in their products, and by highlighting the health and environmental benefits of their offerings. This trend is particularly evident in the United States, where the organic spirits market is growing rapidly.

North America is the dominating region in the craft spirits market, with the United States being the largest contributor to the region's growth. The demand for locally sourced, artisanal products among consumers is high, and this has created opportunities for small-scale distillers to enter the market. In addition, the increasing popularity of craft cocktails in North America has also contributed to the growth of the craft spirits market. The United States is home to a large number of craft distilleries, which are spread throughout the country. The country has a strong culture of artisanal and locally sourced products, and this has translated into the craft spirits industry. In addition, the United States has a large and diverse population, which has different tastes and preferences when it comes to alcoholic beverages. This has created opportunities for craft distilleries to produce a wide variety of products that cater to different segments of the population. Canada is another important market for craft spirits in North America. The country has a growing number of craft distilleries that produce a wide range of products, including vodka, gin, whiskey, and rum. The craft spirits industry in Canada is still in its early stages, but it is expected to grow rapidly in the coming years.