US Craft Spirits Market Expected to Dominate Mainstream Brands in Years to Come
According to numbers published by IWSR Drinks Market Analysis, craft spirits in the United States are expected to “vastly outperform” the growth of popular brands over the next several years.
The beverage analyst group stated that craft spirits in the U.S. increased by almost 8% in 2020, whereas non-craft spirits sales expanded by about 5%.
According to IWSR, which stands for International Wines and Spirits Record, the gap between craft and mainstream spirits will widen in the next few years, with U.S. craft set to enjoy a 21% compound annual growth rate from 2020 to 2025. In contrast, non-craft labels in the United States are anticipated to have a 4% growth rate throughout this period.
Ryan Lee, an IWSR analyst, said: “While there was a substantial deceleration in growth, craft producers and indeed the total US beverage alcohol market as a whole performed better than projected last year due to consumption switching to the home premise.” However, IWSR also predicted that the growth rate of craft would slow down compared to the previous five years, owing to a maturing market and competition.
While American craft whiskey is the most significant player, accounting for 36% of the sector, craft gin is projected to be the highest-grossing of the craft spirits. By 2025, craft gin is expected to have risen from 9% market share to 23% compound annual growth rate between 2020 and 2025.
Lee also stated that “The craft category has benefited from premiumization as higher average prices help US consumers become accustomed to premium-plus offerings.” These findings suggest that the US craft spirits market has a lot of potential for innovation and expansion and remains an attractive investment opportunity for companies.
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