Enjoy complimentary customisation on priority with our Enterprise License!
The craft vodka market is estimated to grow at a CAGR of 6.05% between 2022 and 2027. The size of the market is forecast to increase by USD 760.09 million. The growth of the market depends on several factors, including small craft distillers, growing demand from millennials, and increased demand for craft drinks.
This report extensively covers market segmentation by product (large craft distiller, medium craft distiller, and small craft distiller), distribution channel (on-trade channel and off-trade channel), 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.
To learn more about this report, Download Report Sample
Technavio categorizes the global craft vodka 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. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The increased demand for flavored vodka is notably driving the market growth, although factors such as increasing competition from other alcoholic beverages 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 Vodka Market Driver
The increased demand for flavored vodka is notably driving market growth. The growing desire for small-batch, handcrafted vodka with distinct flavor characteristics is fueling the growth of the craft vodka sector. As a consequence of the rising demand, the number of craft distilleries and spirit manufacturers producing craft vodka has increased. Deep Eddy Vodka, a brand of Heaven Hill Brands, an American-made and family-owned spirits company, for example, provides a variety of flavored vodkas, such as sweet tea vodka, cranberry vodka, lemon vodka, peach vodka, and orange vodka.
The global market is likely to grow owing to the increasing popularity of flavored craft vodka among millennials and women. Most consumers define themselves as creative and unique and are open to experimenting with new products and flavors. Thus, craft vodka is popular among young consumers. Moreover, customers are also willing to spend more on unique and exotic products that offer better taste and satisfaction. Thus, these factors are expected to drive the growth of the global market during the forecast period.
Significant Craft Vodka Market Trend
The increase in online sales is an emerging trend in the market. Online retailing helps small businesses, such as craft vodka manufacturers, to showcase their brands to a large consumer base. The use of e-commerce websites as a tool by businesses to draw consumers toward their brands has increased over the last few years in countries like the US.
Furthermore, specialized delivery services offered by some online retail stores and third-party retailers, such as Amazon are encouraging consumers to purchase vodkas from online platforms. For instance, Amazon, through its mobile application, Prime Now, offers one-hour delivery of alcoholic beverages in the US. Moreover, advances in the online e-commerce sector facilitate the availability of alcoholic beverages, such as craft vodka, in the marketplace and increase their online sales in the country. Thus, such factors will have a positive impact on the global market during the forecast period.
Major Craft Vodka Market Challenge
The increasing competition from other alcoholic beverages is a major challenge impeding the market growth. The increasing competition from other alcoholic beverages, such as tequila, rum, brandy, mezcal, and whiskey, will likely limit market growth during the forecast period. Players operating in the whiskey market are coming up with new flavors to increase the popularity of whiskey among millennial consumers. Moreover, the growing popularity of craft beer and craft whiskies will affect the growth of the market.
Moreover, consumer tastes and preferences are also changing, and they are now more open to experimenting with new flavors and products. Therefore, to build their customer base and sustain and grow in the highly competitive market, it has become important for craft vodka manufacturers to focus on innovative marketing strategies and develop better products. Therefore, an increase in the competition from other alcoholic and non-alcoholic drinks will hinder the growth of the global market during the forecast period.
Key Craft Vodka 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 Vodka 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.
44 North Vodka - The company operates under one segment. The company under this segment offers vodka by utilizing Idaho's great agricultural wealth to produce the purest Potato, gluten-free, and wheat vodkas. The key offerings of the company include craft vodka.
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 large craft distiller segment will be significant during the forecast period. A large craft distiller produces craft spirits, including craft vodka, in the range of 52,576 - 394,317 9-liter cases. Large craft distillers usually produce their craft spirits, including craft vodka, in bulk and generally have a large distribution network in both regional and international markets.
Get a glance at the market contribution of various segments Request a PDF Sample
The large craft distiller segment was valued at USD 1,014.84 million in 2017 and continued to grow until 2021. Large craft distillers account for a very small share of the global market in terms of numbers, but their higher production volumes help them generate the highest revenues. The current scenario for large distillers is encouraging as many states in the US are contemplating liberalizing their laws related to distilleries. For instance, the state of Virginia eliminated laws such as a distillery needing to have a driveway off the main highway with a length of at least 91.44 meters. Thus, owing to such factors the segment is expected to grow during the forecast period.
For more insights on the market share of various regions Request PDF Sample now!
North America is estimated to contribute 44% 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.
In 2022, the US was the largest market for craft vodka in North America and accounted for more than 50% of the regional market share. The market for craft vodka is highly concentrated in the US. The market in the US is moderately fragmented, with many local and global vendors operating in the country. Canada is also one of the fastest emerging markets in the world, as the imports of craft vodka have shown a constant increase over the past five years. The rising imports of craft vodka, due to the growing popularity of premium and artisanal handcrafted vodka among consumers, and the increasing off-trade consumption of craft vodka are expected to drive the growth of the market in Canada. Hence, these factors will boost the regional market growth during the forecast period.
In 2020, COVID-19 significantly hindered the growth of the market in North America. However, in 2021, business and industrial activities resumed with the relaxation of stringent lockdown restrictions owing to the availability of COVID-19 vaccines and the large-scale vaccination drives carried out by the governments of different countries, such as the US, Canada, and Mexico. Pubs, bars, and restaurants reopened with proper safety precautions, which increased the demand for craft vodka across the region in 2021. In addition, innovations and advancements in manufacturing craft vodkas, such as ethnic premium, super-premium vodkas, and flavored vodkas, are increasing consumer demand for craft vodka across North America. Therefore, owing to such factors the market in the region is expected to grow 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.
Craft Vodka Market Scope |
|
Report Coverage |
Details |
Page number |
155 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.05% |
Market growth 2023-2027 |
USD 760.09 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
4.86 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
North America at 44% |
Key countries |
US, Canada, China, UK, and Germany |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
44 North Vodka, 619 Spirits North Park, Alcobrew Distilleries India Ltd., Bainbridge Organic Distillers, Beam Suntory Inc., BrewDog Plc, Candella Micro Distillery, Cardinal Spirits, Charbay Distillery, Diageo Plc, Fifth Generation Inc., Hanson Spirits LLC, Pernod Ricard SA, Rogue Ales and Spirits, Sazerac Co. Inc., St. George Spirits, Toms Town Distilling Co, William Grant and Sons Ltd, Woody Creek Distellers, and Long Road Distellers |
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, and Market condition analysis for the forecast period. |
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
Get lifetime access to our
Technavio Insights
Cookie Policy
The Site uses cookies to record users' preferences in relation to the functionality of accessibility. We, our Affiliates, and our Vendors may store and access cookies on a device, and process personal data including unique identifiers sent by a device, to personalise content, tailor, and report on advertising and to analyse our traffic. By clicking “I’m fine with this”, you are allowing the use of these cookies. Please refer to the help guide of your browser for further information on cookies, including how to disable them. Review our Privacy & Cookie Notice.