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The craft spirits market is estimated to grow at a CAGR of 22.15% between 2022 and 2027. The size of the market is forecast to increase by USD 49,112.89 million. The growth of the market depends on several factors, including growing demand for craft spirits, the increasing number of craft distilleries, and the growing influence of online retailing.
This report extensively covers market segmentation by product (craft whiskey, craft gin, and other craft spirits), distribution channel (on-trade and off-trade), and geography (North America, Europe, APAC, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global craft spirits market as a part of the global brewers market within the global food and beverages market. The global brewers market covers producers of beer, craft beer, and malt liquors, including breweries and craft breweries. The market excludes equipment such as commercial beer dispensers and commercial beer kegerators markets. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The growing demand for craft spirits is notably driving the market growth, although factors such as fluctuations in raw material price may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Craft Spirits Market Driver
The global craft spirits market is likely to grow due to the increasing popularity of craft spirits among millennials and women. The position of Millennials as a consumer segment is growing due to their high purchasing power. Most millennials define themselves as creative and unique and open to trying new products and tastes. Thus, craft spirits are popular with millennial consumers. They are also open to tasting new flavors that are different from the traditional flavors of strong flavors.
Millennials are also willing to pay more for unique and exotic products that offer better taste and satisfaction. Millennials are a significant consumer segment of craft spirits in the UK and the US. Vodka brands like Tito's Handmade Vodka are more popular with millennials than Smirnoff and Absolut. Craft drinks are also becoming more popular among women, as they experience better taste and are made from high-quality ingredients. The number of women-owned distilleries is also increasing in the US and India.
Significant Craft Spirits Market Trend
One of the positive trends that can influence the growth of the global craft spirits market during the forecast period is the increasing number of the millennial population globally. The purchasing power of millennials is huge and the purchasing power of millennials are expected to increase during the forecast period. Craft beverages are becoming popular among millennials, as millennials are more eager to try new varieties and flavors than other consumer segments.
In addition, rising consumer disposable incomes in developing countries like India, where millennials make up nearly 29% of the total population, present a huge opportunity for global craft spirits producers to expand their geographic presence and grow their customer base. Craft spirits manufacturers are targeting the millennial demographic and are introducing products and marketing campaigns aimed at this consumer segment. The millennial population is expected to play a major role in the growth of the global craft spirits market during the forecast period.
Major Craft Spirits Market Challenge
Fluctuations in raw material prices for the food and beverage industry and manufacturers are a major challenge to the growth of the craft spirits market. An increase in the price of raw materials can lead to fluctuations in production costs. These fluctuations can lead to an increase in the price of the final product and affect the profitability of producers.
Handcrafted alcoholic beverages are made from raw materials such as grapes, apples, barley, rice, sugar cane, or corn. Raw materials, ingredients, and other goods used in the production of craft spirits can be damaged due to natural disasters and adverse weather conditions such as heavy rains, droughts, floods, earthquakes, frost, and pestilence. This can affect the yield and quality of grapes, barley, and other raw materials used as ingredients in craft spirits. Such factors can lead to a decrease in the production volume of spirits.
A low supply of raw materials can also lead to a price increase, which in turn leads to a high-priced final product. Therefore, the strong dependence of sellers on climatic conditions is expected to increase the price volatility of raw materials. Such factors hinder the growth of the market during the forecast period.
Key Craft Spirits Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Craft Spirits Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
balconesdistilling.com: The company offers craft spirits such as Classic Rum, Whiskey, Babyblue, Lineage, Bourbon, Texas rye 100 proof, Fr.oak, and Rumble. Also, the company offers spirits such as Babyblue, Lineage, Bourbon, and 100-proof and single malt whiskey.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the craft whiskey segment will be significant during the forecast period. Demand for craft whiskey is growing as consumers demand more premium products that are made with quality ingredients and taste better than traditional spirits. Market players are developing new products to meet increasing consumer demand, which will drive segment growth during the forecast period.
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The craft whiskey segment was valued at USD 6,318.37 million in 2017 and continue to grow by 2021. Demand for craft whiskey will remain high during the forecast period due to increasing demand from emerging economies such as India and South Africa. Demand for craft whiskey is growing in India, the US, and other markets, among others. The growing demand for craft whiskey leads to investments, mergers, acquisitions or partnerships of major suppliers to open new distilleries in various countries. Thus, the continuous launch of new brands and collaboration between manufacturers will positively influence the market growth during the forecast period.
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North America is estimated to contribute 42% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period. North America accounted for the largest share of the global craft spirits market in 2022. The presence of key vendors, the growing demand for craft spirits, the increasing number of breweries, and the rising disposable incomes of people in the region are expected to drive the growth of the craft spirits market in the region. The US and Canada are the leading countries in the craft spirits market in North America. The growing number of breweries in the country is boosting the growth of the market in the US. Thus, the rising number of breweries in the region will drive the growth of the market during the forecast period.
This report forecasts the contribution of all the segments to the growth of the market. In addition, we have included the COVID-19 impact and the recovery strategies for each segment. COVID-19 led to an upsurge in the demand for North America. However, in 2021, the initiation of vaccination drives led to the lifting of lockdowns and travel restrictions across the region. This resulted in the resumption of operations across pubs, bars, and bistros with a limited workforce, which will drive the growth of the crafted beer market in North America during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Product (Craft whiskey, Craft gin, and Other craft spirits), Distribution Channel (On-trade and Off-trade), and Geography (North America, Europe, APAC, South America, and Middle East and Africa).
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Craft Spirits Market Scope |
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Report Coverage |
Details |
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Page number |
160 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 22.15% |
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Market growth 2023-2027 |
USD 49,112.89 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
14.48 |
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Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
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Performing market contribution |
North America at 42% |
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Key countries |
US, China, Poland, Czech Republic, and Germany |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Asheville Distilling Co., Bacardi Ltd., Balcones Distilling, Beam Suntory Inc., Black Button Distilling, Chase Distillery, Constellation Brands Inc., Diageo Plc, Durham Distillery, East London Liquor Co., Eden Mill St Andrews Brewers, Hopmaniacs LLC, Montanya Distillers, Old Line Spirits, Pernod Ricard SA, Sibling Distillery, The Lakes Distillery, Distell Group Ltd., Masons of Yorkshire Ltd., and House Spirits Distillery |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period. |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Distribution Channel
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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