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Craft Spirits Products Market Size, Share, & Trends Analysis Report (2023 – 2030)
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Report Overview
The global craft spirits products market was valued at USD 24.5 billion in 2022 and is projected to grow at a CAGR of 5.5% from 2023 to 2030. The growth of craft spirits is being driven by the increasing demand for premium spirits, increasing preference for environmentally friendly products, and the increasing trend of drinking alcohol for social occasions. Furthermore, the increasing trend of globalization is also fueling the growth of the craft spirits products market.
The craft spirits products market is dominated by the United States, which accounted for more than two-thirds of the market share in 2022. The key players in the craft spirits products market include Diageo, Pernod Ricard, and LVMH.
The craft spirits products market is expected to be dominated by the flavored spirits segment in the coming years. This is due to the increasing demand for flavored spirits, which is attributed to the growing trend of social drinking. For instance, in March 2021, Constellation Brands, the largest beverage company in the world, announced the launch of a new line of flavored spirits, which includes vodka, rum, and whiskey. The line of spirits is said to be launched in response to the growing trend of social drinking.
The key regions driving the growth of the craft spirits products market are North America, Europe, Asia Pacific, and Latin America. The North America craft spirits products market was valued at USD 21.4 billion in 2022 and is projected to grow at a CAGR of 5.5% from 2023 to 2030. The Europe craft spirits products market was valued at USD 5.1 billion in 2022 and is projected to grow at a CAGR of 5.5% from 2023 to 2030. The Asia Pacific craft spirits products market was valued at USD 7.4 billion in 2022 and is projected to grow at a CAGR of 6.0% from 2023 to 2030. The Latin American craft spirits products market was valued at USD 1.3 billion in 2022 and is projected to grow at a CAGR of 7.0% from 2023 to 2030.
Product Insights
The craft spirits market is estimated to be worth USD 45 billion by 2025, growing at a CAGR of 60% during the forecast period. The increasing popularity of craft spirits among millennials and other age groups is expected to drive the market growth. The increasing awareness about the health benefits of consuming craft spirits is also expected to bolster the market demand.
The market is dominated by the US and China, which accounted for a share of around 25% and 30% of the global market, respectively in 2018. The US is the largest market for craft spirits, followed by China. The US is expected to account for the largest share of the global market in 2018. The growth of the Chinese market is expected to drive the market growth over the forecast period.
Distribution Channel Insights
The small to medium-sized businesses (SMBs) segment is expected to account for the highest share of the craft spirits products market in 2022. This is mainly due to the increasing demand for artisanal and craft-brewed spirits among the affluent population. The growth of the craft spirits products market is also supported by the increasing trend of choosy consumers who are interested in selecting premium products.
The off-premise segment is anticipated to account for the highest share of the craft spirits products market in 2022. This is mainly due to the increase in the number of bars, restaurants, and pubs that are starting to serve craft spirits. In addition, the increase in the demand for premium spirits is also contributing to the growth of the off-premise segment.
The on-premise segment is anticipated to account for the lowest share of the craft spirits products market in 2022. This is mainly due to the high cost of setting up a craft spirits facility.
Type Insights
The craft spirits market is expected to grow at a CAGR of 8.4% over the forecast period. This is due to the increasing trend of adopting craft spirits as a preferred drink for various occasions such as weddings, birthdays, and other social gatherings. Additionally, the increasing popularity of craft cocktails and the increasing awareness about the health benefits of consuming craft spirits are some of the key factors driving the market growth.
The premium segment is anticipated to dominate the craft spirits market with a share of more than two-thirds of the market in 2022. This is due to the increasing trend of adopting craft spirits as a preferred drink for various occasions such as weddings, birthdays, and other social gatherings. Additionally, the increasing popularity of craft cocktails and the increasing awareness about the health benefits of consuming craft spirits are some of the key factors driving the market growth.
Regional Insights
North America dominated the market in 2022, with a revenue share of over 43%. This is attributable to the increasing popularity of craft spirits products among consumers. The increasing trend of hosting social gatherings at home or in pubs and restaurants has led to an increase in the demand for craft spirits products. For instance, in September 2021, Pinnacle Brands, the parent company of Jim Beam, announced the launch of a line of craft cocktails called Jim Beam Craft.
Europe is expected to witness the fastest growth in the coming years. This is due to the growth of the e-commerce market in the region and the increasing demand for premium products. Several prominent players in the European market, such as Diageo, Heineken, and Carlsberg, are investing in the craft spirits market. For instance, in May 2022, Heineken announced the launch of a craft beer called ‘Shift’ in the UK.
Asia Pacific is expected to grow at a slower pace than the other regions due to the constraints posed by the growth of the Chinese market. This is attributable to the high cost of raw materials and the low cost of labor in China, which limits the availability of affordable products in the region.
Financial Projections
In this part of the craft spirits products business plan we will provide a detailed breakdown of all income and expense categories of the business. These forecasts include cash flow projections and capital requirements for your craft spirits products business. Usually, these projections are drafted for a 5-year period.
Revenue Assumptions
The main source of revenues for a craft spirits products business comes from sales of products. Here you will find a list with a description of each of them and other possible sources of profit such as fundraising, food & beverage, the sale of merchandise, and licensing the brand.
Projecting Expenses
In this section, all the regular expenses related to keeping the craft spirits products business running will be described. The list of operating expenses includes sales & distribution, manufacturing, R&D, warehousing, and transportation.
Key companies & market share insights
Some of the key companies operating in the craft spirits products market are increasingly focusing on product launches and expansion of the distribution channel to gain prominent visibility among consumers. Some of the initiatives are:
– In March 2022, Diageo plc announced the launch of its first craft whiskey, Jameson Gold.
– In June 2022, Pernod Ricard SA announced the launch of its first craft gin, Hendricks Gin.
– In October 2022, Bacardi Limited announced the launch of its first craft rum, Ron Zacapa 23.
Some of the prominent players in the craft spirits products market include:
– Diageo plc
– Pernod Ricard SA
– Diageo Americas LLC
– Constellation Brands, Inc.
– Sazerac Co. LLC
– Beam Suntory, Inc.
– Brown-Forman Corporation
– Heineken NV
– Johnnie Walker Blue Label
Global Craft Spirits Segmentation
This report forecasts growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2030. For this study, Grand View Research has segmented the global craft spirits products market based on product, distribution channel, type, and region:
1. Product Outlook (Revenue, USD Million, 2017 – 2030)
– Vodka
– Gin
– Tequila
– Rum
– Brandy
– Scotch
– Bourbon
– Wine
– Cocktails
2. Distribution Channel Outlook (Revenue, USD Million, 2017 – 2030)
– Supermarkets & Hypermarkets
– Online
– Convenience Stores
– Fine Wine & Spirits Stores
– Liquor Merchants
– Travel Stores
– Others
3. Type Outlook (Revenue, USD Million, 2017 – 2030)
– Single Malt
– Blended Malt
– Rye Whiskey
– Bourbon Whiskey
– Malt Liquor
– Rye Malt Liquor
– Bourbon Malt Liquor
– Other Craft Spirits
4. Regional Outlook (Revenue, USD Million, 2017 – 2030)
– North America
– Europe
– Asia Pacific
– Central & South America
– Middle East & Africa
Frequently Asked Questions
[Q]: What is the potential of Craft Spirits?
[A]: Craft Spirits are gaining popularity in the market as they are seen as a healthy beverage choice that can be enjoyed without the guilt. Additionally, Craft Spirits are gaining popularity due to their diverse range of flavors and their ability to be paired with various foods and snacks.
The Craft Spirits market is expected to grow at a CAGR of 7.6% during the forecast period.
[Q]: Who are the Key Players in the Craft Spirits Products Market?
[A]: Bacardi Limited, Diageo PLC, Pernod Ricard SA, and Smirnoff vodka are the leading players in the Craft Spirits market.
[Q]: Which Region Offers the Largest Opportunity for Sales of Craft Spirits?
[A]: Europe is expected to be the leading market for sales of Craft Spirits with a share of 39%. This is buoyed by the growth of the craft spirits category in countries such as Germany, the UK, and France.
[Q]: What are the factors driving the Craft Spirits market?
[A]: Factors such as the increasing popularity of Craft Spirits, growth in the luxury segment, and increasing investments by the beverage majors are expected to drive market growth over the forecast period.
[Q]: What are the challenges faced by the Craft Spirits player?
[A]: The main challenge faced by the Craft Spirits players is the lack of brand awareness. This is due to the fact that Craft Spirits are not well-known and are not marketed aggressively.
Research Methodology
Impact Analytix employs a comprehensive and iterative research methodology focused on minimizing deviance in order to provide the most accurate estimates and forecasts possible. The company utilizes a combination of bottom-up and top-down approaches for segmenting and estimating quantitative aspects of the market. In Addition, a recurring theme prevalent across all our research reports is data triangulation which looks market from three different perspectives. Critical elements of the methodology employed for all our studies include:
Preliminary data mining
Raw market data is obtained and collated on a broad front. Data is continuously filtered to ensure that only validated and authenticated sources are considered. In addition, data is also mined from a host of reports in our repository, as well as a number of reputed paid databases. For a comprehensive understanding of the market, it is essential to understand the complete value chain and in order to facilitate this; we collect data from raw material suppliers, distributors as well as buyers.
Technical issues and trends are obtained from surveys, technical symposia, and trade journals. Technical data is also gathered from an intellectual property perspective, focusing on white space and freedom of movement. Industry dynamics with respect to drivers, restraints, and pricing trends are also gathered. As a result, the material developed contains a wide range of original data that is then further cross-validated and authenticated with published sources.
Statistical model
Our market estimates and forecasts are derived through simulation models. A unique model is created and customized for each study. Gathered information for market dynamics, technology landscape, application development, and pricing trends are fed into the model and analyzed simultaneously. These factors are studied on a comparative basis, and their impact over the forecast period is quantified with the help of correlation, regression, and time series analysis. Market forecasting is performed via a combination of economic tools, technological analysis, industry experience, and domain expertise.
Econometric models are generally used for short-term forecasting, while technological market models are used for long-term forecasting. These are based on an amalgamation of the technology landscape, regulatory frameworks, economic outlook, and business principles. A bottom-up approach to market estimation is preferred, with key regional markets analyzed as separate entities and integration of data to obtain global estimates. This is critical for a deep understanding of the industry as well as ensuring minimal errors. Some of the parameters considered for forecasting include:
Market drivers and restraints, along with their current and expected impact
Raw material scenario and supply v/s price trends
Regulatory scenario and expected developments
Current capacity and expected capacity additions up to 2030
We assign weights to these parameters and quantify their market impact using weighted average analysis, to derive an expected market growth rate.
Primary validation
This is the final step in estimating and forecasting our reports. Exhaustive primary interviews are conducted, face to face as well as over the phone to validate our findings and assumptions used to obtain them. Interviewees are approached from leading companies across the value chain including suppliers, technology providers, domain experts, and buyers so as to ensure a holistic and unbiased picture of the market. These interviews are conducted across the globe, with language barriers overcome with the aid of local staff and interpreters. Primary interviews not only help in data validation but also provide critical insights into the market, current business scenario, and future expectations and enhance the quality of our reports. All our estimates and forecast are verified through exhaustive primary research with Key Industry Participants (KIPs) which typically include:
Market-leading companies
Raw material suppliers
Product distributors
Buyers
The key objectives of primary research are as follows:
To validate our data in terms of accuracy and acceptability
To gain an insight into the current market and future expectations
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