Craft Spirits Market Growth & Trends
The global craft spirits market is expected to reach USD 124.56 billion by 2030, according to a new report by Grand View Research, Inc. The market is anticipated to expand at a CAGR of 28.3% from 2022 to 2030. The whiskey craft spirit segment contributed a majority of the share to become the largest division in the global revenue in 2021. Increased disposable wealth among young customers, such as millennials, is expected to improve whiskey consumption during the forecast period. In addition, the increased usage of craft whiskey in cocktails is expected to boost the industry in the coming years.
Over the last few years, the market has shown strong responsiveness to customer expectations, as seen by the emergence of numerous craft whiskey goods. The on-trade segment is expected to register the largest market share of 58.7% in 2021. The primary distribution outlets are bars, taverns, and restaurants. Craft spirits manufacturers typically begin selling their products at high-end bars and restaurants before expanding into supermarkets and other retail outlets. The rise in popularity of the cocktail has bolstered on-trade sales all over the world. The cocktail experience has been prioritized by restaurants, bars, and pubs.
COVID-19 regulations have had a significant impact on craft distillers, according to the Distilled Spirits Council of the United States’ 2020 report. The sales of on-site tasting rooms have been especially sensitive. Over half of those polled said it had a major influence on their tasting room sales. Approximately 40% of craft distillers reported a 25% or greater drop in on-site sales, with over 15% reporting that their tasting rooms were totally shut down.
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Craft Spirits Market Report
Craft Spirits Market Report Highlights
- North America is expected to contribute a majority of the share to become the largest division in the global revenue in 2021. The millennial population of the United States has been adopting and demanding such locally crafted spirits since each one offers something unique
- The gin segment is projected to register the fastest growth during the forecast period with a CAGR of 31.0% from 2022 to 2030. During the pandemic, for example, UK’s largest gin subscription service Craft Gin Club, increased its membership to nearly 100,000 people. Growing interest in the club’s smaller, local distilleries is believed to have accounted for a major portion of the surge during lockdown
- During the forecast period, the Off-trade segment is expected to grow the fastest. The rise of the off-trade segment has been spurred by the rising availability of drinks in supermarkets, liquor stores, and online retail outlets
