Fact.MR reports that the Global Craft Spirit Market is expected to achieve a valuation of $230 billion by the conclusion of 2033. The market is anticipated to experience a substantial Compound Annual Growth Rate (CAGR) of 29% 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 growth, spanning ethnic premium, super-premium and flavored varieties, capturing the interest of consumers worldwide. This demand acts as a driving force for the expansion of the craft spirit market.
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,” says a Fact.MR analyst.
Prominent market leaders emphasize strategies like innovation and the introduction of new products in retail to enrich and expand their product lineup within the market.
In 2023, North America is poised to capture 62% of the global craft spirit market share. The region's burgeoning Millennial population is expected to drive demand for craft spirits throughout the projected period. The rapid increase in the number of manufacturers in the U.S. can be attributed to the supportive approval policies established by regulatory authorities.
Numerous factors contribute to the market's robust growth, with a pivotal one being the establishment of secure approval policies and regulations by regulatory bodies. These policies have created a favorable environment for entrepreneurs and craft distillers to prosper, consequently leading to an upsurge in demand for craft spirits in the U.S. and a subsequent rise in the number of manufacturers.