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Craft Spirits Market in the US - Industry Outlook and Forecast 2018-2023

Craft Spirits Market in the US - Industry Outlook and Forecast 2018-2023

This market research report on US craft spirits market offers analysis on market size & forecast, market share, industry trends, growth drivers, and vendor analysis. The market study also includes insights on segmentation by product (whiskey, gin, vodka, brandy, rum, liqueurs, and others), by product size (large craft producers, medium craft producers, and small craft producers), and by distribution (out of state sales, home state sales, and direct sales).

US Craft Spirits Market - Overview

The changes in taste and the growing demand for small batch, handmade beverages with unique flavor profiles is contributing to the growth of the US craft spirits market. The growing number of younger demographic is encouraging the market of these beverages in the US market. The growth of the economy is driving greater flexibility and giving consumers the luxury to demand handcrafted alcoholic beverages in the US market. The increasing in tourism and growing interest in visiting distilleries is encouraging manufacturers to invest in the development of new breweries in the US market. The rapid change in consumer palates, jaded existing products, ease in production, ease in regulations, and intensification of social drinking are some of the factors driving the growth of the US market. These factors will promote the demand for premium and artisanal craft beers with distinctive flavors in the US market over the next few years. The distilleries in the US market are adopting the incubator model of business which allows small brands to access corporate money, either through capital investments or by selling a majority stake while remaining in control of the trade. These business models will promote the growth of the market and result in the production of unique beverages in the US. The availability of best-selling gins, whiskeys, rums, and vodkas will also contribute to the revenues in the US craft spirits market.

The focus on the mixing of handmade craftsmanship, tons of culture, and locavore ethics are resulting in the thriving craft brewing industry and distilling industries in the US market. The new trends of consuming and producing absinthe, liqueur, Amaro, and aquavit will add to the growing revenues in the US market. The US craft spirits market is expected to reach revenues of more than $20 billion by 2023, growing at an impressive CAGR of over 32% during 2018-2023. The report also includes market size in terms of volumes produced during the forecast period.

US Craft Spirits Market - Dynamics

The growing investments in delivering the perfect on-site experiences are augmenting the growth of the US craft spirits market. The new trend of agritourism is leading to the promotion of craft distilleries demonstrating their manufacturing process thereby, simultaneously building brand awareness and loyalty in the US market. The increasing focus on consumer engagement and leveraging it to fortify authenticity of their brand and product will help vendors to attract new consumers and increase their market share during the forecast period. The market is witnessing the use of space of a rag factory for a distillery to acquiring a property that uses solar power to offset its carbon footprint, craft makers are going great lengths to weave elements of interest to their sites to gain larger consumer groups in the US market. The increase in innovations at tasting rooms and distilleries that enrich the experience of a distillery-tourer will boost demand in the US craft spirits market. For instance, Anchor Distilling Company in San Francisco has a provision of a walk through an edible roof garden along with a penthouse bar to engage consumers in the US market.

US Craft Spirits Market - Segmentation

This market research report includes a detailed segmentation of the market by product, by product size, and by distribution.

US Craft Spirits Market – By Products

Innovations in styles and flavors of whiskey to boost revenues in the US craft spirits market during the forecast period

The US craft spirits market by products is segmented into whiskey, gin, vodka, brandy, rum, liqueurs, and others. Craft whiskey dominated the majority of the market share in 2017, growing at a CAGR of approximately 32% during the forecast period. The efforts on improving the quality and breadth of whiskey driving the demand for premium grade products in this segment in the US market. The use of a combination of old school and modern methods of distilling of Kentucky and Tennessee bourbons that include single malts, ryes, white whiskeys, and blends will augment the growth of the US market during the forecast period. The growing demand for darker liquors, artisanal bourbons, and ryes is leading to the entry of new producers in the US craft spirits market. The rising focus on the innovations that will enable distillers to add personality to the whiskey’s profile will transform the US craft spirits market. Additionally, rising consumer awareness will create a positive impact on the growth of this segment in the US market.

US Craft Spirits Market – By Product Size

The entrance of new producers will boost the number of aged products in the US craft spirits market during the forecast period

The product size segment in the US craft spirits market is categorized into large craft producers, medium craft producers, and small craft producers. Large craft producers occupied the largest market share in 2017, growing at a CAGR of more than 28% during the forecast period. The advantage of diversifications and expansion of large producers are contributing to the growth of this segment in the US market. With a wide range of products with distinct flavors is encouraging these players to pay more attention to the environmental and social impact in the US market. The incorporation of sustainability and fair trade policies while sourcing raw materials will propel the growth of the US market. Large craft producers are gaining certifications to produce organic spirits to gain a larger market share and boost revenues. The rising number of partnerships and focus on production automation will transform the US craft spirits market. These strategic collaborations will help micro distilleries create craft beverages in urban settings and provide access to the required capital in the market. For instance, Our/Vodka, stated by Swedish entrepreneurs employed an out-of-the-box model where local entrepreneurs could produce spirits in cities such as Detroit using sustainable business practices.

US Craft Spirits Market – By Distribution

Marketing strategies to promote out of state sales in the US craft spirits market during the forecast period

The US craft spirits market by distribution is divided into out of state sales, home state sales, and direct sales. Out of state sales segment dominated the majority of the market share in 2017, growing at a CAGR of around 29% during the forecast period. The increasing strategic marketing efforts and distribution networks enabling large producers to draw the attention of the consumer and building a national brand if propelling the growth of this segment in the US market. The growth of e-commerce portals that sell and distribute craft products will boost the revenues in the US market during the forecast period. Various retail chains are using innovative marketing tactics that revolve around selling with ideas, services, and inspiration to break through national barriers in the US market. The changes in regulations and inter-state business policies will propel the growth of the US craft spirits market.

Key Vendor Analysis

The US craft spirits market is highly fragmented and is witnessing consolidation activities by large producers acquiring established craft distilleries. The leading players in the market control majority of the market share and competition in the US. The introduction of different product categories will help vendors sustain the competition in the US market. The increasing influx of women entrepreneurs in the industry that is bringing in whole new perspectives will result in the evolution of the US craft spirits market during the forecast period. The top companies in the US market are competing on the basis of accessibility, taste, variety, ingredients, quality, price, versatility, and flavor.

The major vendors in the US market are:

  • Diageo
  • Pernod Ricard
  • Bacardi
  • St. George’s Spirits
  • House Spirits Distillery
Other prominent vendors include Balcones Distilling, Corsair Distillery, Fifth Generation, Glen Moray Distillery, Koval Distillery, Louisiana Spirits, Middle West Spirits, New Deal Distillery, Oregon Spirit Distillers, and Philadelphia Distilling.

Key market insights include

1. The analysis of US craft spirits market provides market size and growth rate for the forecast period 2018-2023.

2. It offers comprehensive insights into current industry trends, trend forecast, and growth drivers about the US craft spirits market.

3. The report provides the latest analysis of market share, growth drivers, challenges, and investment opportunities.

4. It offers a complete overview of market segments and the regional outlook of US craft spirits market.

5. The report offers a detailed overview of the vendor landscape, competitive analysis, and key market strategies to gain competitive advantage.

Report Snapshot

The US craft spirits are expected to reach values of around $20 billion by 2023, growing at an impressive CAGR of over 32% 2018–2023.

The US craft spirits market is driven by pro-business parity with wineries and breweries to increase production. The top vendors are using social networks as sources of invitation to tastings and other special events in the US market. The market research report provides in-depth market analysis and segmental analysis of the US craft spirits market by product, product size, and distribution.

Market Size
  • Revenue
  • Volume
Base Year: 2017

Forecast Year: 2018–2023

The report considers the present scenario of the US craft spirits market and its market dynamics for the period 2018−2023. It covers a detailed overview of various market growth enablers, restraints, and trends. The study covers both the demand and supply sides of the market. It also profiles and analyzes the leading companies and various other prominent companies operating in the US craft spirits market.

Major Vendors in the US Craft Spirits Market
  • Diageo
  • Business Overview
  • Major Product Offerings
  • Key Strengths
  • Key Strategies
  • Key Opportunities
  • Pernod Ricard
  • Bacardi
  • St. George’s Spirits
  • House Spirits Distillery
Prominent Players in the US Craft Spirits Market
  • Balcones Distilling
  • Business Overview
  • Product Offerings
  • Key Strengths
  • Key Strategies
  • Corsair Distillery
  • Fifth Generation
  • Glen Moray Distillery
  • Koval Distillery
  • Louisiana Spirits
  • Middle West Spirits
  • New Deal Distillery
  • Oregon Spirit Distillers
  • Philadelphia Distilling
Market Segmentation by Product
  • Whiskey
  • Gin
  • Vodka
  • Brandy
  • Rum
  • Liqueurs
  • Others
Market Segmentation by Product Size
  • Large Craft Producers
  • Medium Craft Producers
  • Small Craft Producers
Market Segmentation by Distribution
  • Out of State Sales
  • Home State Sales
  • Direct Sales


1 Research Methodology
2 Research Objectives
3 Research Process
4 Report Coverage
4.1 Market Definition
4.2 Base Year
4.3 Scope of Study
4.3.1 Market Segmentation by Product
4.3.2 Market Segmentation by Distribution
4.3.3 Market Segmentation by Producer Size
5 Report Assumptions and Caveats
5.1 Key Caveats
5.2 Inclusions
5.3 Exclusions
5.4 Currency Conversion
5.5 Market Derivation
6 Market at a Glance
7 Introduction
7.1 Overview
7.1.1 US Economy: An Overview
7.2 Overview of the Beverage Market In US
7.3 Consumer Behavior
7.4 The Craft Market
7.4.1 Craft Beer and Craft Spirits – A comparison
7.4.2 Craft Spirits Market across US States
8 Market Dynamics
8.1 Market Growth Enablers
8.1.1 Growing “Share of Throat” of Spirits against Beers
8.1.2 The Cocktail Renaissance
8.1.3 Gradual Loosening of Regulations
8.1.4 Intensifying Farm-to-flask Movement
8.1.5 Reduced FET
8.1.6 YOY Impact of Market Growth Enablers
8.2 Market Growth Restraints
8.2.1 Vague Definition
8.2.2 Difficulties with Expansion and Mainstream Attention
8.2.3 Time and Cost Factors Create Quality Vacuum
8.2.4 Complex Regulatory Environment
8.2.5 YOY Impact of Market Growth Restraints
8.3 Market Opportunities and Trends
8.3.1 Evolution of Hybrid Distillery Concepts
8.3.2 Craft Spirit Events on the Rise
8.3.3 Integration of Tourism and Trails
8.3.4 Major Firms on the Movement
8.3.5 Growing Investments in On-Site Experiences
8.3.6 YOY Impact of Market Opportunities and Trends
9 Craft Spirits Market in US
9.1 Market Overview
9.1.1 By Revenue
10 Porter’s Five Forces Analysis
10.1 Threat of New Entrants
10.2 Bargaining Power of Suppliers
10.3 Bargaining Power of Buyers
10.4 Threat of Substitutes
10.5 Competitive Rivalry
11 Craft Spirits Market In US By Product
11.1 Market Overview
11.2 Craft Whiskey
11.2.1 Market Size and Forecast
11.3 Craft Gin
11.3.1 Market Size and Forecast
11.4 Vodka
11.4.1 Market Size and Forecast
11.5 Craft Brandy
11.5.1 Market Size and Forecast
11.6 Craft rUM
11.6.1 Market Size and Forecast
11.7 Craft Liqueurs
11.7.1 Market Size and Forecast
11.8 Others
11.8.1 Market Size and Forecast
12 Craft Spirits Market In US By Producer Size
12.1 Market Overview
12.2 Large Craft Producers
12.2.1 Market Size and Forecast
12.3 Medium Craft Producers
12.3.1 Market Size and Forecast
12.4 Small Craft Producers
12.4.1 Market Size and Forecast
13 Craft Spirits Market In US By Distribution
13.1 Market Overview
13.2 Out of State
13.2.1 Market Size and Forecast
13.3 Home State Sales
13.3.1 Market Size and Forecast
13.4 Direct Sales
13.4.1 Market Size and Forecast
14 Competitive Landscape
14.1 market overview
14.1.1 Performance Demands among Distillers, Distributors, and Operators
14.1.2 Marketing Tactics
15 Market Vendor Analysis
15.1 Market RANKING ANALYSIS
16 Key Company Profiles
16.1 Diageo
16.1.1 Business Overview
16.1.2 Major Product Offerings
16.1.3 Key Strategies
16.1.4 Key Strengths
16.1.5 Key Opportunities
16.2 Pernod Ricard
16.2.1 Business Overview
16.2.2 Major Product Offerings
16.2.3 Key Strengths
16.2.4 Key Strategies
16.2.5 Key Opportunities
16.3 Bacardi
16.3.1 Business Overview
16.3.2 Major Product Offerings
16.3.3 Key Strengths
16.3.4 Key Strategies
16.3.5 Key Opportunities
16.4 St. George’s Spirits
16.4.1 Business Overview
16.4.2 Product Offerings
16.4.3 Key Strengths
16.4.4 Key Strategies
16.4.5 Key Opportunities
16.5 House Spirits Distillery
16.5.1 Business Overview
16.5.2 Product Offerings
16.5.3 Key Strengths
16.5.4 Key Strategies
16.5.5 Key Opportunities
17 Other Prominent Vendors
17.1 Balcones Distilling
17.1.1 Business Overview
17.1.2 Product Offerings
17.1.3 Key Strengths
17.1.4 Key Strategies
17.2 Corsair Distillery
17.2.1 Business Overview
17.2.2 Product Offerings
17.2.3 Key Strengths
17.2.4 Key Strategies
17.3 Fifth Generation
17.3.1 Business Overview
17.3.2 Key Strengths
17.3.3 Key Strategies
17.4 Glen Moray Distillery
17.4.1 Business Overview
17.4.2 Key Strategies
17.4.3 Key Strengths
17.5 Koval Distillery
17.5.1 Business Overview
17.5.2 Product Offerings
17.5.3 Key Strengths
17.5.4 Key Strategies
17.6 Louisiana Spirits
17.6.1 Business Overview
17.6.2 Product Offerings
17.6.3 Key Strengths
17.6.4 Key Strategies
17.7 Middle West spirits
17.7.1 Business Overview
17.7.2 Product Offerings
17.7.3 Key Strengths
17.7.4 Key Strategies
17.8 New Deal Distillery
17.8.1 Business Overview
17.8.2 Product Offerings
17.8.3 Key Strengths
17.8.4 Key Strategies
17.9 Oregon Spirit Distillers
17.9.1 Business Overview
17.9.2 Product Offerings
17.9.3 Key Strengths
17.9.4 Key Strategies
17.10 Philadelphia Distilling
17.10.1 Business Overview
17.10.2 Product Offerings
17.10.3 Key Strengths
17.10.4 Key Strategies
18 Report Summary
18.1 Key Takeaways
18.2 Strategic Recommendations
18.3 Qualitative Summary: Craft Spirits market in US
18.4 Quantitative Summary: CRAFT SPIRITS market in US
18.4.1 Market Size
19 Appendix
19.1 Abbreviations
List of Exhibits
Exhibit 1 Segmentation of Craft Spirits Market in US
Exhibit 2 Market Size Calculation Approach 2017
Exhibit 3 Pulse of the Craft Spirits Market in US
Exhibit 4 Change in Real GDP in US 2017−2023 (%)
Exhibit 5 Beverage Market in US by Category 2017
Exhibit 6 Pulse of Beverage Market in US
Exhibit 7 Share of Craft in Beer and Spirit Markets 2017
Exhibit 8 Craft Distiller Sales as Share of Total US Spirits Volume and Value 2012−2017
Exhibit 9 Time – Shifted Volume Market Share of US Craft Breweries and Craft Distilleries
Exhibit 10 Share of Craft Distilleries across US 2017
Exhibit 11 Spirit Sale Statistics in US 2016−2017
Exhibit 12 State Favorability Index for Craft Distillery Tasting Rooms 2017
Exhibit 13 US Consumer Insights 2017
Exhibit 14 Commonly Associated Descriptors of Craft Spirits
Exhibit 15 Average Start-up Distillery Costs
Exhibit 16 Participation Areas during Craft Spirits Weeks
Exhibit 17 Key Craft Distillery Trails with Number of Distilleries Across US
Exhibit 18 Craft Spirits Market in US 2017−2023 ($ million)
Exhibit 19 Craft Spirits Market in US 2017−2023 (9L million cases)
Exhibit 20 Five Forces Analysis 2017
Exhibit 21 Craft Spirit Product Segmentation 2017 & 2023
Exhibit 22 Craft Spirits Market in US by Product ($ million)
Exhibit 23 Craft Spirits Market in US by Product 2017
Exhibit 24 Craft Spirits Market in US by Product 2023
Exhibit 25 Craft Spirits Market in US Growth Comparison by Product 2017–2023
Exhibit 26 Craft Whiskey Market in US 2017–2023 ($ million)
Exhibit 27 Craft Gin Market in US 2017–2023 ($ million)
Exhibit 28 Craft Vodka Market in US 2017–2023 ($ million)
Exhibit 29 Craft Brandy Market in US 2017–2023 ($ million)
Exhibit 30 Craft Rum Market in US 2017–2023 ($ million)
Exhibit 31 Craft Liqueur Market in US 2017–2023 ($ million)
Exhibit 32 Other Craft Spirits Market in US 2017–2023 ($ million)
Exhibit 33 Craft Spirit Market in the US by Producer Size 2017 & 2023
Exhibit 34 Craft Spirits Market in US by Producer Size ($ million)
Exhibit 35 Craft Spirits market in US by Producer Size 2017
Exhibit 36 Craft Spirits Market in US Growth Comparison by Producer Size 2017–2023
Exhibit 37 Craft Spirits Market in US by Producer Size 2023
Exhibit 38 Craft Spirits Market in US by Large Craft Producers 2017–2023 ($ million)
Exhibit 39 Craft Spirits Market in US by Large Craft Producers 2017–2023 (9L million cases)
Exhibit 40 Medium Craft Producers Market in US 2017–2023 ($ million)
Exhibit 41 Craft Spirits Market in US by Medium Craft Producers 2017–2023 (9L million cases)
Exhibit 42 Craft Spirits Market in US by Large Craft Producers 2017–2023 (9L million cases)
Exhibit 43 Craft Spirits Market by Small Craft Producers 2017–2023 ($ million)
Exhibit 44 Craft Spirit Market in US by Distribution Segmentation
Exhibit 45 Craft Spirits Market in US by Distribution ($ million)
Exhibit 46 Craft Spirits Distribution by Distillery Type (2017)
Exhibit 47 Craft Spirits market in US by Distribution 2017
Exhibit 48 Craft Spirits Market in US by Distribution 2023
Exhibit 49 Craft Spirits Market in US Growth Comparison by Distribution 2017–2023
Exhibit 50 Craft Spirits Market in US by Out of State Sales 2017–2023 ($ million)
Exhibit 51 Craft Spirits Market in US by Out of State Sales 2017–2023 (9L million cases)
Exhibit 52 Spirits Market in US by Home State Sales 2017–2023 ($ million)
Exhibit 53 Craft Spirits Market in US by Home State Sales 2017–2023 (9L million cases)
Exhibit 54 Spirits Market in US by Direct Sales 2017–2023 ($ million)
Exhibit 55 Craft Spirits Market in US by Direct Sales 2017–2023 (9L million cases)
Exhibit 56 Leading Criteria Considered for Craft Spirit Brands (%)
Exhibit 57 Number of Active Craft Distillers by State 2017
Exhibit 58 From DSPs to Craft Distillers 2017
Exhibit 59 Industry Recommendations for Conducive Craft Environment 2017
List of Tables
Table 1 Key Caveats
Table 2 Currency Conversion 2013−2017
Table 3 Overview of Craft Distillery Scene in Various States 2017
Table 4 New Crop of Alcohol Laws Passed in US 2016−2018
Table 5 Summary of Changes in Tax Rates 2017−2020
Table 6 YOY Impact of Market Growth Enablers 2017−2023
Table 7 YOY Impact of Market Growth Restraints 2017−2023
Table 8 YOY Impact of Market Opportunities and Trends 2017−2023
Table 9 Craft Spirits Market in US by Revenue & Volume 2011−2016
Table 10 Market Ranking Analysis 2017
Table 11 Diageo: Product Offerings
Table 12 St. George’s Spirits: Product Offerings
Table 13 House Spirits Distillery: Product Offerings
Table 14 Qualitative Summary of Craft Spirits Market in US
Table 15 Quantitative Summary of Craft Spirits Market in US by Distribution ($ million)
Table 16 Quantitative Summary of Craft Spirits Market in US by Distribution (%)
Table 17 Quantitative Summary of Craft Spirits Market by Product ($ million)
Table 18 Quantitative Summary of Craft Spirits Market by Product (%)
Table 19 Quantitative Summary of Craft Spirits Market in US by Producer Size ($ million)
Table 20 Quantitative Summary of Craft Spirits Market in US by Producer Size(%)

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