According to market research and competitive intelligence provider Fact.MR, the Global Craft Spirit Market is expected to achieve a valuation of $342.75 billion by the conclusion of 2033.
The market is anticipated to experience a substantial Compound Annual Growth Rate (CAGR) of 29 per cent from 2023 to 2033.
Craft spirits, encompassing domestically manufactured alcoholic beverages, are crafted through distillation and fermentation techniques. Typically produced in limited quantities, often below 750,000 gallons, their production requires individuals to hold a distiller’s license specifying production capacity and emphasizing independent operation.
Regulatory oversight is provided by a major player in the alcoholic beverage industry, and in the United States, certification for craft spirit production involves label approval by the Alcohol and Tobacco Tax and Trade Bureau (TTB).
The global demand for craft spirits has witnessed significant growth, spanning ethnic premium, super-premium, and flavoured varieties, capturing the interest of consumers worldwide. This heightened demand acts as a driving force for the expansion of the craft spirit market. The renaissance of craft spirits has led to the introduction of innovative products, establishing their unique presence with packaging designs that evoke quality and handcrafted sensibilities.
Millennials, driven by a preference for unique and authentic experiences, are inclined to explore and experiment with various flavors and types of distilled liquors. This trend has resulted in a surge in demand for new and unconventional offerings in the craft spirits market.
“Growing desire for craft spirits, surge in craft distilleries, and an uptick in disposable income are propelling market growth. Furthermore, the millennial demographic, possessing significant purchasing capabilities, is expected to be a driving force in the market over the coming years,” said a Fact.MR analyst.
The market comprises both global and local participants. Prominent market leaders emphasise strategies like innovation and the introduction of new products in retail to enrich and expand their product lineup within the market.
In March 2022, Diageo, the leading global beverage alcohol company, announced its intentions to construct a brand-new distillery with a budget of $365.18 million, aiming to bolster the momentum and growth targets of its Crown Royal Canadian whisky brand. This state-of-the-art facility will employ resource-efficient technology and operate entirely on renewable energy sources, ensuring the distillery’s carbon neutrality and a zero-waste-to-landfill production process.