Report: Craft Spirits Sales Decline for Third Straight Year

The U.S. craft spirits category declined for the third consecutive year in 2025, with sales volume, market share, the number of active distillers, employment and producer investment all falling, according to the 2026 Craft Spirits Data Project (CSDP).

The American Craft Spirits Association (ACSA) and Park Street presented the data on Oct. 6 during ACSA’s Annual Craft Spirits Economic Briefing. The report covers calendar year 2025 and draws on data collected from craft spirits producers between June and August 2026.

The category recorded 11.7 million 9-liter cases in 2025, down 8% from 12.7 million cases in 2024. Craft spirits sales totaled $7.3 billion, a 3.7% decline from the previous year.

Craft spirits’ share of the overall U.S. spirits market also declined. The category accounted for 4.2% of spirits volume in 2025, compared with 4.5% in 2024. Its share by value fell to 7.3% from 7.5%.

As of August 2026, the U.S. had 2,131 active craft distillers, down 6.6% from 2,282 a year earlier. According to the CSDP, 2025 marked the first year in which distillery closures outpaced openings.

Employment also declined. Craft spirits businesses employed 21,285 full-time domestic workers in 2025, down 25.6% from 28,628 in 2024.

Direct Sales Gain Share

Distillery sales have become a larger part of the craft spirits business as producers face challenges reaching consumers through distribution.

Sales at distilleries accounted for 26% of craft spirits sales in 2025, up from 14% in 2015. Sales in other states, meanwhile, accounted for 51% of craft spirits sales in 2025, down from 54% in 2020.

The CSDP attributed the decline in out-of-state sales to distributors reducing their portfolios as they worked through excess inventory, declining export markets following tariffs and state restrictions on direct-to-consumer shipping.

Export volume fell 13.4% in 2025 to 123,000 9-liter cases.

Investment Declines

Craft distillers also reduced investment in their businesses. Average investment per craft producer fell to $239,800 in 2025 from $288,900 in 2024.

Total investment across the craft spirits sector fell for the second consecutive year, reaching $526 million in 2025 compared with $811 million in 2024.

The Craft Spirits Data Project defines an active craft distiller as a licensed U.S. distilled spirits producer that removes 750,000 proof gallons or less from bond, markets itself as craft, is not openly controlled by a large supplier and has no proven violation of the ACSA Code of Ethics.

ACSA and Park Street launched the Craft Spirits Data Project in 2015. The project combines data from craft spirits producers with regulatory data, industry sources, surveys, interviews and assessments based on the project’s craft distiller definition.

Feature photo by Daniel Bigalke on Unsplash.

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