That’s the figure computed by Grand View Research, San Francisco, which notes the global craft spirits market was valued at $6.13 billion last year. Grand View project a 33.4% CAGR from 2017 to 2015.
The millennial population segment has fueled significant demand, owing to their preference for unconventional and experimental alcoholic beverages, Grand View says in a just-released report.
If Grand View is correct, the beer industry’s debate over what’s craft will emerge in the spirits space, too, with large distilleries dominating the market, accounting for 59.7% of industry volume by 2025, a result of acquisitions to strengthen their competitive positions.
Whiskey is the largest product segment in the craft spirits industry worldwide, the report says. But gin is expected to be the fastest growing segment.
North American dominates the global craft spirits market, accounting for 53% of total revenue last year. Consumers who have just reached above the Legal Drinking Age (LDA) have played the key role in driving the product demand in North America.
Looking to opportunities outside North America, Grand View sees lucrative opportunities for distillers owing to tremendous potential in countries such as China, India, Thailand, Indonesia, Malaysia, South Korea, Australia, and Japan.
China has the largest share in Asia Pacific, and its share is expected to increase at a significant rate with increased consumer spending on such things as eating and dining out.
Key players include Pernod Ricard, Diageo plc, Rémy Cointreau, Anchor Brewers & Distillers, Rogue Ales, and William Grant & Sons. The market is likely to move towards consolidation, owing to entrance of established players in the market through acquisitions, Grand View says in its analysis.