The U.S. craft spirits category is one of the most dynamic and promising segments within the US alcohol industry. Despite experiencing economic headwinds after the pandemic, craft spirits maintained volume and dollar growth in 2022, according to the findings from the 2023 Craft Spirits Data Project.
The Craft Spirits Data Project, which was first introduced in 2016, is a first-of-its-kind research initiative that aims to provide a solid and reliable fact base for evaluating performance and trends for U.S. craft spirits. The Craft Spirits Data Project seeks to quantify the number, size, and impact of craft spirits producers in the United States in an effort led by the American Craft Spirits Association and Park Street.
The full-length report provides an in-depth look at the craft spirits industry statistics, but we have put together a few highlights below.
KEY FINDINGS AND HIGHLIGHTS
- The number of active craft distillers in the U.S. grew by 2.4% to reach a total of 2,753 in August 2023. Craft distillers are defined as licensed U.S. distilled spirits producers that make no more than 394,317 9L cases annually, market themselves as craft, are not openly controlled by a large supplier, and have no proven violation of the ACSA Code of Ethics.
- The U.S. craft spirits category volume reached over 14 million 9L cases in retail sales in 2022, growing at an annual growth rate of 6.1%. In value terms, the market reached $7.9 billion in sales growing at an annual growth rate of 5.3%.
- U.S. craft spirits market share of total U.S. spirits maintained a 4.9% share in volume and increased value share to 7.7% in 2022, up from 7.5% in 2021.
- Craft spirits exports increased by 4.3% to 171,000 9L cases and surpassing pre-pandemic heights of 155,000 9L cases in 2019. However, the category is still recovering from the long-term export implications from tariffs and have not reached pre-tariff levels seen in 2017 at 566,000 9L cases.
- Employment numbers within the U.S. craft market continued to increase post-pandemic, reaching 27,368 full-time domestic employees.
- The American South has the highest concentration of craft distilleries, surpassing the West which has typically had higher numbers. Some states are “craftier” than others, with California, New York, Texas, Pennsylvania, and Washington leading the pack. Texas remains the third most concentrated state, having taken the fourth slot last year in 2020. Washington fell into the fifth slot, having been third in 2020. The top five states by number of craft distilleries – CA (245), NY (210), TX (163), PA (117) & WA (156) — make up 32.4% of the U.S. craft distiller universe, and the next five states — CO (114), MI (114), NC (104), FL (91), and OR (86) — comprise an additional 18.5% of the market. The remaining states represent 49.1% of the market.