Craft Spirits Market in US Witnesses an Emergence of Hybrid Distillery Concepts


Arizton’s recent market research report on the craft spirits market in US provides comprehensive industry analysis, trend forecasts, and competitive analysis. The research study segments the market by product (whiskey, gin, vodka, brandy, rum, liqueurs, and others), by product size (large craft producers, medium craft producers, and small craft producers), by distribution (out of state sales, home state sales, and direct sales), and offers detailed competitive analysis.

The craft spirits market in US is anticipated to reach values of over $20 billion by 2023, growing at a CAGR of more than 32% during 2018-2023.

The focus on creating experiences and increasing interaction with consumers at the bar, in tasting rooms, in restaurants, at work shops, at events, and distillery trails is augmenting the growth of the craft spirits market in US. The use of digital medium and social media for promotions and marketing activities will help vendors gain a larger market share and new consumers.

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The top 3 drivers and trends contributing to the evolution of the craft spirits market in US are discussed below:

The Cocktail Renaissance

The cocktail renaissance is making its mark with mixologists and fueling the frenzy in the craft spirits market in US. Millennials the leading force making the revolution of the cocktails in the US market. The multicultural bartenders are imbibing experimentation with an emphasis on explosive creativity and quality ingredients, such as in-house syrups, bringing craft cocktails to the forefront in the US market. The growing demand for craft whiskeys, bourbons, and mezcals is boosting the revenues in the craft spirits market in US. The rise in the number foodies and the growth of artisanal food revolutions are some of the primary factors that are attributing to the growth of the US market. In the recent years, digital media has been ascribed with the development of amateurs’ knowledge about cocktails and driving participation in the culture by making them more accessible via democratization in the US market. Cities such as New York, Portland, and San Francisco are leading the revolution in the craft spirits market in US.

Intensifying Farm-to-flask Movement

The growing demand for superior ingredients, authentic production processes, and finally a better taste experience are top factors driving the growth of the craft spirits market in US. The farmers are leveraging this trend to create new opportunity to distill their own spirits via their produce and sell them without the distribution requirements, and the high-priced licenses in the US market. Many farm distilleries are using local ingredients with tasting rooms, restaurants, and bars to attract new consumers in the US market. These farmers can sell their product through their farm store without having to use a wholesaler and it is a liberty that other alcohol producers don’t have in the craft spirits market in US. The leading vendors are offering distinct brand preferences that imbue sustainability, personalization, and experiences, craft spirits which have a unique sense of identity and originality to attract new consumers in the craft spirits market in US. The consumption of native spirits is being looked at as a way to support the local community; the local winery, distillery, and brewery; in tandem with the growing spirit among new age consumers to giving back.

US Consumer Insights 2017

US Consumer Insights on Craft Spirits Vendors


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Evolution of Hybrid Distillery Concepts

The leading craft spirit makers are opening their doors to the spirit-favoring masses and reaching out to them through their stomachs thereby, resulting in the development of new business models in the craft spirits market in US. The establishment of micro-distillery with a full service restaurant is one of the evolution witnessed in the US market. The growing popularity of gastro pubs and the distinctive experience of expertly crafted spirits, cocktails, and food in the shadows of huge copper stills and the sights of a spirit distillery in action has given distilleries a new purpose in the craft spirits market in US. The duality of restaurant-distilleries is touted with myriad benefits from allowing customers to mix food with spirits and sampling them straight, outside of a regular tasting room. Such new developments will boost revenues in the craft spirits market in US. For instance, District Distilling Co., Washington DC is a distillery-pub set in a series of historical 19th-century row houses complete with a distillery, a tasting room, a dining room, a retail shop, and space for private parties and tastings.

The leading vendors in the craft spirits market in US are Diageo, Pernod Ricard, Bacardi, St. George’s Spirits, and House Spirits Distillery.

The complete overview of the latest market research report on craft spirits market in US by Arizton is now available.

The report also offers a detailed study of major trends, drivers, challenges, and also provides the market size and forecast for major geographical regions and key countries.

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