U. S. Craft Spirits Sales Exceeded 14 Million Cases in 2022

 

The American Craft Spirits Association (ACSA) and Park Street today presented highlights from the 2023 Craft Spirits Data Project (CSDP) at its annual economic briefing. Introduced in 2016, the Craft Spirits Data Project evaluates performance and trends in the U.S. craft spirits industry. 

Key findings and highlights include the following: 

U.S. craft spirits market volume reached 14M 9-liter cases in retail sales, growing at an annual rate of 6.1%. In value terms, the market reached $7.9 billion in sales, growing at an annual rate of 5.3%. While there was still growth in 2022, it had slowed considerably from 2021, when craft spirits volume grew by 10.4% and value by 12.2%. U.S. craft spirits market share of total U.S. spirits maintained a 4.9% share in volume and increased value share to 7.7% in 2022, up from 7.5% in 2021.

The number of active craft distillers in the U.S. grew by 2.4% over the last year to 2,753 as of August 2023. Similarly, growth slowed from the year prior, which reported an increase by 17.4%. Active craft distillers are defined as licensed U.S. distilled spirits producers that removed 750,000 proof gallons (or 394,317 9L cases) or less from bond, market themselves as craft, are not openly controlled by a large supplier, and have no proven violation of the ACSA Code of Ethics. 

Despite strong economic challenges, craft producers have consistently found value in reinvesting in their businesses. The total amount invested in the U.S. craft spirits segment increased by 6.5% year-over-year to $880 million. Employment numbers within the U.S. craft market also continued to increase post-pandemic, with 27,368 full-time domestic employees. 

Home states still represent a critical sales opportunity. Craft spirits sales remain almost evenly split between the home state (47.4%) and other states (52.6%) in 2022. 

While export growth was slower (up by 58% in 2021), exports provided an important runway for growth in 2022, up by 4.3% to 171,000 9L cases and surpassing pre-pandemic heights of 155,000 9L cases in 2019. However, the category is still recovering from the impact of tariffs and have not reached pre-tariff levels seen in 2017 at 566,000 9L cases. 

The American Craft Spirits Association is the only registered national non-profit trade association representing the U.S. craft spirits industry.  Launched in 2003 by former McKinsey consultants, Park Street is a technology-enabled services company that helps emerging and established alcoholic beverage suppliers and brand owners cost-effectively and securely scale and manage their businesses.