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US craft spirits sales grow by 10.4%

The US craft spirits market rose by 10.4% in volume last year, marking its return to pre-pandemic double-digit growth rates.

Craft spirits
There are 2,687 craft distillers in the US as of August 2022

According to the American Craft Spirits Association (ACSA) and Park Street’s 2022 Craft Spirits Data Project (CSDP), craft spirits market volume in the States reached more than 13.2 million nine-litre cases in retail sales in 2021.

By value, the sector reached US$7.5 billion in sales in 2021, rising by 12.2%.

In 2020, US craft spirits sales increased at a slower rate in 2020, when it recorded a 7.3% rise to 12m nine-litre cases in volume. In 2019, the market increased by 24% to 11.9m cases.

The sector’s share of total spirits in the US reached 4.9% in volume and 7.5% in value in 2021, up from 4.7% in volume and 7.1% in value in 2020.

Exports of US craft spirits soared by 58% to 164,000 nine-litre cases.

The number of active craft distillers in the US grew by 17.4% to 2,687 as of August 2022, compared to August last year.

The ACSA defines craft distillers as licensed US spirits producers that removed 750,000 proof gallons 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.

On average, craft distillers invested US$337,100 in 2021, a minor decrease of 2% from 2020. However, the larger number of craft distillers in 2021 increased the total amount invested in the segment by 9% to US$826m.

The states with the most craft distillers are California (225), New York (199), Texas (173), Pennsylvania (156), and Washington (117). Collectively, they make up 32.4% of the US craft distilling market.

Texas is now the third most concentrated state, moving up from fourth place in 2020. Washington fell into the fifth slot, having been third in 2020.

The number of workers within the US craft market rebounded to a total of 24,255 full-time domestic employees, but it failed to reach pre-pandemic levels.

Covid-19 resulted in a nearly 50% decrease in full-time workers for the craft sector in 2020.

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