ACSA Economic Report: U.S. Craft Spirits Remain in Decline
The U.S. craft distilling industry remains in a period of decline, far removed now from boom times during the Covid era.
The American Craft Spirits Association (ACSA) and Park Street this week presented highlights from the 2025 Craft Spirits Data Project (CSDP) at their Annual Craft Spirits Economic Briefing. The event argued for urgent market access improvements to provide a lifeline to distilleries, which remained in reverse for the second consecutive year.
In 2024, the U.S. craft spirits category performed in line with the larger spirits market, according to the report, experiencing its second decline since the creation of this report in 2016. The craft spirits category represented 12.7 million cases (versus 13.5 million in 2023) and $7.58 billion in sales for the year, representing a volume decrease of 6.1% and value decrease of 3.3%.
As a whole, craft spirits sales remain nearly evenly split between the home state (48.5%) and other states (51.5%) in 2024. Since 2021, craft spirits sales in the home state have increased share of total craft spirit sales (+1.1pp) while sales outside the home state have decreased as a percentage of total craft sales (-1.2pp).
Large craft producers shifted resources to focus on sales in their respective home states as well as exports, according to the report, while medium-sized craft producers do the majority of business in the home state. Small craft producers focused primarily on increasing home state sales, with this channel gaining share of sales accordingly.
Despite economic headwinds, craft producers continue to reinvest in their businesses, though at a slower rate in 2024. The average amount invested by a craft producer declined from $324,700 in 2022 to $288,900 in 2024. The total investment by all craft producers decreased for the first time, reaching $811 million in 2024.
KEY DATA POINTS FROM THE 2025 CDSP:
Craft spirits volume decreased by 6.1%. 12.7 million 9L cases were sold at retail in 2024, down from 13.5 million in 2023.
Craft spirits value decreased by 3.3%, totaling $7.58 billion in sales for the year.
U.S. craft spirits are losing overall spirits market share to large producers as consumers trade down to lower-priced products. While craft spirits market share by value remained steady at 7.5% in 2024, market share fell 4.5% by volume.
Employment numbers within the U.S. craft market declined for the first time post-pandemic, reaching 28,628 full-time domestic employees, down from 29,373 in 2023.
Exports, an important runway for growth, were down 120% in 2024, for a total of 142,000 9L cases.
You can view the full 2025 Craft Spirits Data Project here.
The Craft Spirits Data Project, introduced in 2016, is a research initiative that aims to provide a solid and reliable fact base for evaluating performance and trends in the U.S. craft spirits industry. The CSDP, which seeks to quantify the number, size and impact of craft spirits producers in the U.S., is an effort led by ACSA and Park Street.
Feature photo by Patrick Fore on Unsplash.
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