PUBLISHED DATE : Jul 2018 | Pages : 163
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U.S. Craft Spirits Market Size, Share, Trends, Analysis Report by Product (Whiskey, Gin, Vodka, Brandy, Rum, Liqueurs, and Others), Product Size (Large Craft Producers, Medium Craft Producers, and Small Craft Producers), and Distribution (Out Of State Sales, Home State Sales, and Direct Sales), Industry Analysis Report, Regional Outlook, Price Trends, Growth Potential, Competitive Landscape, Share & Forecast, 2018-2023
163 Pages
20 Tables
59 Charts
1 Regions
1 Countries
15 Companies
3 Market Segment
| Report Attribute | Details |
|---|---|
| MARKET SIZE (REVENUE) | USD 20 BILLION (2023) |
| CAGR | 32% (2018-2023) |
| Base Year | 2017 |
| Forecast Year | 2018 - 2023 |
| Market Segments | Product (Whiskey, Gin, Vodka, Brandy, Rum, Liqueurs, and Others), Product Size (Large Craft Producers, Medium Craft Producers, and Small Craft Producers), and Distribution (Out Of State Sales, Home State Sales, and Direct Sales) |
| Geographic Analysis | United States |
| Countries Covered | United States |
The U.S. craft spirits market size to reach USD 20 billion by 2023, growing at a CAGR of 32% during the forecast period. The changes in taste and the growing demand for small-batch, handmade beverages with unique flavor profiles are 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 increase in tourism and growing interest in visiting distilleries is encouraging manufacturers to invest in the development of new breweries in the US craft spirits 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 market. These factors will promote the demand for premium and artisanal craft beers with distinctive flavors 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 craft spirits 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 2017-2023. The report also includes market size in terms of volumes produced during the forecast period.
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 the authenticity of their brand and product will help vendors to attract new consumers and increase their market share during the forecast period. The craft spirits 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 to great lengths to weave elements of interest to their sites to gain larger consumer groups. 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.
This market research report includes a detailed segmentation of the market by
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.
The entry 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 craft spirits 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.
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 is propelling the growth of the US craft spirits 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.
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 craft spirits 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.
Market Segmentation by Product
Frequently Asked Questions
What is the market size and CAGR of the Craft Spirits market?
Craft spirits market size to reach USD 20.716 billion by 2023 growing at a CAGR of over 32% during the forecast period.
What factors are driving the US craft spirits market growth?
The increase in tourism and growing interest in visiting distilleries is encouraging manufacturers to invest in the development of new breweries in the US craft spirits 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 market. These factors will promote the demand for premium and artisanal craft beers with distinctive flavors over the next few years
Who are the key vendors in the market?
Diageo, Pernod Ricard, Bacardi, St. George’s Spirits, House Spirits Distillery are the leading vendors in the market
Which distribution channel will dominate the US craft spirits market sale?
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 US craft spirits market are expected to reach values of around $20 billion by 2023, growing at an impressive CAGR of over 32% 2017–2023.
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 market by product, product size, and distribution.
Market Size
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 market.
Major Vendors in the US Craft Spirits Market
Prominent Players in the US Craft Spirits Market
Market Segmentation by Product
Market Segmentation by Product Size
Market Segmentation by Distribution
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 US Craft Spirits 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 US Craft Spirits Market States
8 US Craft Spirits Market Dynamics
8.1 US Craft Spirits 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 US Craft Spirits 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 US Craft Spirits Market Opportunities and Trends
8.3.1 Evolution of Hybrid Distillery Concepts
8.3.2 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 US Craft Spirits Market
9.1 US Craft Spirits 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 US Craft Spirits Market By Product
11.1 US Craft Spirits 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 US Craft Spirits Market 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 US Craft Spirits Market 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: US Craft Spirits Market
18.4 Quantitative Summary: US Craft Spirits Market
18.4.1 Market Size
19 Appendix
19.1 Abbreviations
List of Exhibits
Exhibit 1 Segmentation of US Craft Spirits Market
Exhibit 2 Market Size Calculation Approach 2017
Exhibit 3 Pulse of the US Craft Spirits Market
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 Spririts
Exhibit 15 Average Start-up Distillery Costs
Exhibit 16 Participation Areas during Spirits Weeks
Exhibit 17 Key Craft Distillery Trails with Number of Distilleries Across US
Exhibit 18 US Craft Spirits Market 2017−2023 ($ million)
Exhibit 19 US Market 2017−2023 (9L million cases)
Exhibit 20 Five Forces Analysis 2017
Exhibit 21 Product Segmentation 2017 & 2023
Exhibit 22 US Craft Spirits Market by Product ($ million)
Exhibit 23 US Market by Product 2017
Exhibit 24 US Craft Spirits Market by Product 2023
Exhibit 25 US Market 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 US Craft Spirits Market 2017–2023 ($ million)
Exhibit 33 US Market by Producer Size 2017 & 2023
Exhibit 34 US Craft Spirits Market by Producer Size ($ million)
Exhibit 35 US Market by Producer Size 2017
Exhibit 36 US Market Growth Comparison by Producer Size 2017–2023
Exhibit 37 US Market by Producer Size 2023
Exhibit 38 US Market by Large Craft Producers 2017–2023 ($ million)
Exhibit 39 US Craft Spirits Market by Large Craft Producers 2017–2023 (9L million cases)
Exhibit 40 Medium Craft Producers Market in US 2017–2023 ($ million)
Exhibit 41 US Market by Medium Craft Producers 2017–2023 (9L million cases)
Exhibit 42 US Market by Large Craft Producers 2017–2023 (9L million cases)
Exhibit 43 US Craft Spirits Market by Small Craft Producers 2017–2023 ($ million)
Exhibit 44 US Market by Distribution Segmentation
Exhibit 45 US Market by Distribution ($ million)
Exhibit 46 Spirits Distribution by Distillery Type (2017)
Exhibit 47 US Craft Spirits Market by Distribution 2017
Exhibit 48 US Market by Distribution 2023
Exhibit 49 US Craft Spirits Market Growth Comparison by Distribution 2017–2023
Exhibit 50 US Market by Out of State Sales 2017–2023 ($ million)
Exhibit 51 US Market 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 US Craft Spirits Market by Home State Sales 2017–2023 (9L million cases)
Exhibit 54 Spirits Market in US by Direct Sales 2017–2023 ($ million)
Exhibit 55 US Craft Spirits Market by Direct Sales 2017–2023 (9L million cases)
Exhibit 56 Leading Criteria Considered for 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 US Craft Spirits Market 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 US Craft Spirits Market
Table 15 Quantitative Summary of US Market by Distribution ($ million)
Table 16 Quantitative Summary of US Market by Distribution (%)
Table 17 Quantitative Summary of Market by Product ($ million)
Table 18 Quantitative Summary of Market by Product (%)
Table 19 Quantitative Summary of US Market by Producer Size ($ million)
Table 20 Quantitative Summary of US Market by Producer Size(%)
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