Craft Spirits Market Size

Craft Spirits Market Analysis

The Craft Spirits Market size is estimated at USD 19.35 billion in 2024, and is expected to reach USD 31.89 billion by 2029, growing at a CAGR of 10.51% during the forecast period (2024-2029).

Due to COVID-19 restrictions, the craft spirit market faced a huge loss, shut down all the bars, restaurants, and retail shops, and sales were reduced. Import and export of goods between the countries were also restricted, due to which the market players faced significant issues. After the pandemic, however, the market slowly grew owing to the change in taste preferences and a massive demand for different flavored spirits. The growing number of younger people consuming craft spirits was driving the market. For instance, In January 2022, Bacardi announced the launch of a new non-alcoholic spirit brand Palette, which was created, in collaboration with Amsterdam-based bartenders and designed with cocktails.

The demand for ethnic premium, super-premium, and flavored spirits, which include craft and artisanal varieties, increased among global consumers. This increased demand fuelled the growth of the craft spirits market during the study period. The craft spirits boom introduced many new products that have successfully carved out a niche for themselves by leveraging package designs that promise quality through evocative design and hand-crafted sensibilities. The people born between the 1980s and 2000s are a large portion of consumers who visit bars, hotels, and pubs more often; therefore, they are a large number of buyers for the market. People are becoming more conscious and inclined to step out of their comfort level, which is why major producers are modifying and innovating by creating accessible, fun, and delicious spirits with innovative packaging. Thus, beverage professionals have been incorporating these spirits in cocktails through creative applications to cater to the rising demand from consumers.