Progress continued for the American craft spirits market in 2022, albeit slower than the explosive tempo from current years.
This was among the many key takeaways from yesterday’s Annual Craft Spirits Financial Briefing, hosted by The American Craft Spirits Affiliation (ACSA) and Park Avenue. Through the assembly, Margie A.S. Lehrman (CEO, ACSA), Gina Holman (President, ACSA and Founding Accomplice, J. Carver Distillery) and Emily Pennington (Senior Supervisor, Park Avenue) shared gross sales information and insights from the 2022 calendar yr.
U.S. craft spirits market quantity reached 14 million 9-liter instances in retail gross sales in 2022, rising at an annual charge of 6.1%. In worth phrases, the market reached $7.9 billion in gross sales, rising at an annual charge of 5.3%. Whereas there was nonetheless progress in 2022, it has slowed significantly from 2021, the place craft spirits quantity grew by 10.4% and worth by 12.2%.
U.S. craft spirits market share of complete U.S. spirits maintained a 4.9% share in quantity and elevated worth share to 7.7% in 2022, up from 7.5% in 2021.
The variety of energetic craft distillers within the U.S. grew by 2.4% over the past yr to 2,753 as of August 2023. Equally, progress slowed from the yr prior, which reported a rise by 17.4%. Energetic craft distillers are outlined by the ACSA as licensed U.S. distilled spirits producers that eliminated 750,000 proof gallons (or 394,317 9L instances) or much less from bond, market themselves as craft, are usually not overtly managed by a big provider, and don’t have any confirmed violation of the ACSA Code of Ethics.
Regardless of sturdy financial challenges, craft producers persistently reinvested of their companies. The entire quantity invested within the U.S. craft spirits section elevated by 6.5% year-over-year to $880 million. Employment numbers throughout the U.S. craft market additionally continued to extend post-pandemic, with 27,368 full-time home staff.
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Residence states nonetheless symbolize a essential gross sales alternative for producers. Craft spirits gross sales remained virtually evenly break up between the house state (47.4%) and different states (52.6%) in 2022.
The American South has the very best focus of craft distilleries, surpassing the West which has usually had increased numbers. Some states are “craftier” than others, with California, New York, Texas, Pennsylvania and Washington main the pack. Texas stays the third most concentrated state, having taken the fourth slot final yr in 2020. Washington fell into the fifth slot, having been third in 2020. The highest 5 states by variety of craft distilleries – CA (245), NY (210), TX (163), PA (117) & WA (156) — make up 32.4% of the U.S. craft distiller universe, and the following 5 states — CO (114), MI (114), NC (104), FL (91), and OR (86) — comprise a further 18.5% of the market. The remaining states symbolize 49.1% of the market.
This annual presentation is named the Craft Spirits Knowledge Challenge (CSDP). Launched in 2016, the CSDP a first-of-its-kind analysis initiative that goals to offer a dependable truth base for evaluating efficiency and developments within the U.S. craft spirits business. The CSDP, which seeks to quantify the quantity, dimension, and influence of craft spirits producers within the U.S., is an effort led by ACSA and Park Avenue.
You’ll be able to view the complete 2023 Craft Spirits Knowledge Challenge right here.
Function picture by Katherine Conrad on Unsplash
