US craft spirits sales up 6.9% in 2022

Craft spirits sales in the US rose by 6.9% in 2022, a slower rate than the previous year, as volume and value growth normalised after the pandemic.

The annual Craft Spirits Data Project (CSDP), compiled by the American Craft Spirits Association (ACSA) and Park Street, revealed that more than 14 million nine-litre cases of craft spirits were sold, which is up from 2021’s 13.2m total.

Compared to 2021, however, the rate of sales growth has dropped – when the volume of craft spirits sold climbed by 10.4%. The report states that this could be attributed to a ‘normalising’ of volume and value growth following the pandemic.

In terms of value, the market reached US$7.9 billion in sales for 2022, increasing by 5.3% on the previous year. In comparison, 2021’s figure saw the sector reach US$7.5bn in sales, with a rise of 12.2%.

The sector also had a 4.9% share of volume in the US spirits market and 7.7% in value, which is a slight increase from the 7.5% reported in 2021.

Craft spirits exports in 2022 were also up from 2021’s amount – 171,000 nine-litre cases compared to 164,000 – which was a 4.3% increase.

Investment in the craft spirits industry has risen too. While the average amount invested by individual craft distillers decreased in 2022, total investment has jumped by 6.5%, from US$826,000 in 2021 to US$880,000 in 2022.

Overall, there were 2,753 active craft distillers reported in the US. This is once again a slight 2.4% increase from 2021 where there was said to be 2,687 craft distillers active in the US.

California was the state with the most craft distilleries – reported at 245 – with New York (210), Texas (163), Pennsylvania (117) and Washington (156) rounding out the top five. Together they make up 32.4% of craft distilleries in the US.

The segment is defined by the ACSA as spirits produced in the US by licensed producers that haven’t had more than 750,00 proof gallons removed from the bond, market themselves as craft, are not openly controlled by a large supplier and have no proven violation of the ACSA Code of Ethics.

Lastly, employment numbers in the US craft sector continue to rise as the market recovers from the effects of the pandemic.

The data showed that there are now 27,368 full-time domestic employees in the US craft spirits sector, up by 24,255 in 2021 and 16,865 in 2020. The pandemic resulted in a near 50% drop in full-time domestic employees in the sector. The number is yet to return to its pre-pandemic figure of 30,000 workers, though.

The market for US spirits in general has calmed after the pandemic forced major changes in consumer behaviour.