And craft distillers snagged 2.6% of market share in terms of volume, 3.8% in terms of value, according to the American Craft Spirits Data Product. That’s up from 2.2% of spirits volume and 3% value in 2015.
The number of active craft distilleries grew 20.8% to 1,589. Employment in the craft spirits industry grew 47.8% to almost 19.600 workers.
Exports are up 8.2% since 2015, with more than half a million cases exported. Exports of U.S. craft spirits reached 566,000 cases in 2016, adding more than 8.8% of additional volume to U.S. craft distillers’ total sales. 2016 exports grew by 8.2% versus 2015.
Distillery and tasting room sales make up 34% of all sales for small craft distilleries, while out of state sales make up 58% for larger craft distilleries. Direct sales at the distillery are important for all craft distillers but especially important for small craft producers (between 0 and 10,000 proof gallons removed from bond annually). Direct sales make up 34% of all total sales across all craft distilleries. Out of state business is particularly important for large producers (between 100,001 and 750,000 proof gallons removed from bond annually), accounting for more than 58% of the total business.
Some states are “craftier” than others, with California, New York, Washington, Texas, and Colorado leading the pack. Geographically, the market remains concentrated. The top five states by number of craft distilleries – California (148), New York (123), Washington State (106), Texas (86) & Colorado (80) — make up 34.2% of the U.S. craft distiller universe, — while Ohio and Florida comprise an additional 17.8% of the market. The remaining states represent 48.0% of the market.