Enjoy complimentary customisation on priority with our Enterprise License!
The craft vodka market is estimated to increase by USD 760.09 million and grow at a CAGR of 6.05% between 2022 and 2027. The market is experiencing significant expansion, driven by various influential factors. One key contributor is the emergence of small, artisanal distillers, who are producing unique and high-quality products. Another significant factor is the increasing preference of millennials for authentic and locally sourced beverages. This demographic group is known for its willingness to explore new and innovative products, making it a major consumer base. Additionally, the growing trend towards healthier and more natural drink options has led to an increased demand for craft distilled spirits, including vodka. These factors collectively contribute to the dynamic and promising growth trajectory of the market.
To learn more about this report, Download Report Sample
In the dynamic and evolving world of spirits, the market continues to captivate consumers with its unique offerings. This sector is characterized by small batch, handcrafted vodkas, each boasting distinctive flavor profiles that differentiate them from mass-produced counterparts. Neighborhood companies specializing in craft vodka distilleries prioritize the use of local ingredients, ensuring regional origins and premium quality. The pursuit of unique flavors is a primary driver in the market. These artisanal spirits often feature flavored craft vodkas, crafted with care from organic and natural ingredients. The emphasis on high-quality, authentic ingredients sets craft vodka apart from its mass-produced counterparts.
Drizzly, an e-commerce platform, offers a wide selection of these unique craft vodkas, allowing consumers to explore various regional origins and taste profiles from the comfort of their homes. Whisky connoisseurs and celebrities like Julian Cox, Jason Momoa, and Jason Derulo have also been known to appreciate the artistry and dedication behind the production. Meanwhile, renowned organizations such as House of Suntory continue to invest in and support the market, recognizing the value of small quantities, local ingredients, and the passion that goes into each bottle. The result is a diverse and exciting market that caters to the discerning palate and the quest for authentic, premium spirits. 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.
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 sector. As a consequence of the rising demand, the number of craft distilleries and spirit manufacturers producing it 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 variant among millennials and women. Most consumers define themselves as creative and unique and are open to experimenting with new products and flavors. Thus, it 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.
The increase in online sales is an emerging trend in the market. Online retailing helps small businesses, such as 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, 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.
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 the 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.
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.
Market Customer Landscape
Companies 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 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 companies, including:
Qualitative and quantitative analysis of Companies 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 Companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize Companies 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, in the range of 52,576 - 394,317 9-liter cases. Large craft distillers usually produce their craft spirits, 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 1.01 billion 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 in North America and accounted for more than 50% of the regional market share. The market is highly concentrated in the US. The market in the US is moderately fragmented, with many local and global Companies operating in the country. Canada is also one of the fastest emerging markets in the world, as the imports have shown a constant increase over the past five years. The rising imports due to the growing popularity of premium and artisanal handcrafted vodka among consumers, and the increasing off-trade consumption are expected to drive the growth of the market in Canada. Hence, these factors will boost the regional market growth during the forecast period.
Vodka Market - Vodka Market by Product, Distribution Channel, Price, and Geography - Forecast and Analysis
US - Vodka Market - US - Vodka Market by Price, Distribution Channel, and Product - Forecast and Analysis
Europe - Vodka Market - Europe - Vodka Market Research Report, Size, Growth, Trends, Opportunity Analysis, Industry Forecast
The market research and growth report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments.
In the dynamic and evolving world of spirits, the craft vodka market continues to captivate consumers with its small batch, handcrafted offerings. These artisanal varieties of vodka boast unique flavor profiles, derived from premium and organic ingredients. Ethnic premium and superpremium vodkas are increasingly popular, as consumers seek out distinct flavors that cater to their palates and align with their health and wellness goals. Mixology and cocktails play a significant role in the market, with craft cocktails gaining traction in high-end bars, restaurants, and internet platforms. Mixologists and bartenders constantly experiment with these purer organic spirits to create innovative and tantalizing concoctions. Successful branding and marketing techniques are essential for brands to stand out in a crowded market. A compelling brand story, values, and unique selling factors are crucial in attracting and retaining customers. As the demand for craft vodkas grows, these unique goods are finding wider distribution in specialty liquor stores and beyond.
Moreover, in the dynamic landscape of premium vodka production, success hinges on navigating a myriad of factors. Newly formulated products and small batch, handcrafted vodka cater to discerning consumers seeking ethnic premium vodkas made from premium ingredients and aged in unusual barrels with exotic ingredients. The Regulatory Environment poses challenges with Modifications to laws and stringent labelling requirements, alongside Regulatory Obstacles such as obtaining licences and permits under existing alcohol laws. High Level of Competition arises from established large-scale distilleries and well-known brands occupying prime retail locations, challenging smaller producers focused on smaller batches, higher-quality ingredients, and artisan vodka known for its craftsmanship. Volatility in Input Costs affects essential ingredients like water and grains, influenced by economic variables and the brand identity of craft vodka goods from smaller manufacturers.
Furthermore, navigating Changing Consumer Tastes towards non-alcoholic beverages and diverse other spirits requires adaptation to fluctuating Consumer spending patterns amidst recessions and unstable economic situations, favoring upscale or artisanal goods despite higher expenses. Successful Craft distillery operations, whether in Tasmania like Tasmanian distiller or globally recognized brands like Jim Beam and Haku, illustrate resilience in a competitive market like the one surrounding Meili and Rahasya
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 Companies, Market Positioning of Companies, 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 forecasting, 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 market forecast period. |
Customization purview |
If our market 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 Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
Get lifetime access to our
Technavio Insights
Quick Report Overview:
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.