The U.S. craft spirits category faced significant challenges in 2023, according to the 2024 Craft Spirits Data Project. The market experienced its first volume decrease since the report’s inception in 2016. Despite these headwinds, the craft spirits industry continues to evolve and adapt.
Led by the American Craft Spirits Association (ACSA) and Park Street, the Craft Spirits Data Project, introduced in 2016, is a pioneering research initiative quantifying the number, size, and impact of craft spirits producers in the United States. The report aims to provide a solid and reliable fact base for evaluating performance and trends in the U.S. craft spirits industry.
While the full-length report offers an in-depth analysis of the craft spirits industry, the key highlights from 2023 reveal a complex landscape of challenges and opportunities for craft distillers across the country.
Key Findings and Highlights
- The number of active craft distillers in the U.S. grew by 11.5% to reach a total of 3,069.
- U.S. craft spirits market volume decreased -3.6% to 13.5 million cases in 2023 (versus 14 million in 2022). In value terms, the market reached $ 7.8 billion in sales at a -1.1% growth rate.
- Exports of U.S. craft spirits increased, reaching 179,000 9L cases, marking about a 5% increase from the prior year.
- Craft producers have consistently found value in reinvesting in their businesses. The average amount invested by a craft producer declined to $310,000 in 2023 from $337,000 in 2022. However, the total investment by all craft producers continues to increase, reaching $885 million in 2023, as more companies are reinvesting.
- Employment numbers within the U.S. craft market continued to increase post-pandemic, reaching 29,373 full-time domestic employees, up from 27,368 in 2022.
- Some states are “craftier” than others, with California, New York, Texas, Pennsylvania, and Washington leading the pack. California and Pennsylvania both saw a massive jump in distillery numbers (379 distilleries, up from 245 and 177, up from 117, respectively). Texas saw a small increase (177 distilleries, up from 163) and New York saw a decline, down to 199 from 210, while Washington remained steady at 154, with 156 last year. These top 5 states make up more than 35% of all craft distillers, and more than half of all active craft distilleries are in the top 10 states (CA, NY, PA, TX, WA, CO, FL, MI, KY, NC).