Much like the data we used to show the huge rise in the craft beer market over the last 5 years, the craft spirit market is showing much of the same! The US craft spirits market is expected to reach values of over $20B by 2023. These numbers were all found pre-COVID, of course, but the trend is there. For comparison’s sake, the craft beer market grew to $27.6B in 2018.
The number of operating distilleries reached 2,000 in 2018, a growth of 15.5% from 2017. Growth has been accelerated thanks to the Craft Beverage Modernization and Tax Reform Act, which dropped the tax price on the first 100,000 gallons produced from $13.50 to $2.70 – talk about incentives!
Craft whiskey growth, for example, grew at a CAGR of 32% from 2017 to 2018. The market is expected to grow at 33% over the years to come. Craft beer CAGR is estimated to be between 15-20% for the same time period.
Another interesting statistic shows that the craft distiller market had only a 2.6% share of the overall spirit market as of 2018. Craft beer accounted for 13.2% of the total beer market in the same year, clearly showing its maturity.
There is a growing trend in the US for a hybrid of craft beer houses and distilleries under one roof, or the ‘brewstillery.’ This combination obviously welcomes more people, as we now can tout both brewing beer and making liquor by ourselves. The Session believes the Brewstillery is A FANTASTIC IDEA for businesses looking for a leg up and can help to garner interest from a larger customer base.