The rising beverage sector offers unique drinks in response to changing market needs, driving the crafts spirit market to develop over the forecast period. Compared to wine and beer, which are fermented, crafts spirits are distilled spirits or liquors. The popular craft spirits on the market include brandy, gin, whiskey, rum, tequila, and flavored liqueurs.
The rising enthusiasm for consuming liquor, primarily during cocktail parties and social or corporate meetings, is driving the growth of the worldwide crafts spirit market during the forecast period. Liquors are the essential ingredients used to make cocktails; thus, several beverages need at least one distilled spirit and are prominent in bars, hotels, and restaurants as for cocktails. The developing lifestyle of consumers worldwide, coupled with the adoption of a modern lifestyle, offers an opportunity for the market to prosper throughout the forecast period.
The global craft spirits market is expected to increase at a CAGR of 33.95% between 2020 and 2027, from US$14.305 billion to US$110.684 billion.
Why is the Demand for Craft Spirits Market Increasing?
Craft beverages are becoming more popular among millennials as they reach the legal drinking age and rising purchasing power in developing and developed regions worldwide, resulting in the rise of the market. Furthermore, this group of consumers tends to experiment with innovative and unconventional alcoholic beverages, which is also increasing the demand of the craft spirits market.
The market is divided into categories like brandy, gin, whiskey, rum, flavored liqueurs, and others. Whiskey is expected to gain a large market share over the forecasting period. The major reason is that it is the most popular craft alcohol, followed by gin and rum.
The popularity of gin is increasing globally primarily due to its remarkable taste and flavor. Nowadays, craft distilleries are more focused on the use of various spices, fruits, herbs, and botanicals for producing unique craft spirits, and this will drive market demand throughout the projected period. The majority of raw materials are obtained from the manufacturer's family-owned farming homes, having immense knowledge about producing fruits and grains.
The number of craft distilleries increased by 26% in 2017 over the previous year, based on the reports of American Craft Spirits Association. Employment also increased in the craft spirits industry, as the association data project discovered that more than 19,000 people worked full-time in craft spirits businesses in 2017. This increased by 47% from over 13,000 employees in 2016.
Global Craft Spirit Market Trends
Various types of beverages are currently entering the global market. As a result, the high consumer demand for unique beverages is growing. This is significant because customers all over the world want drinks that offer more than a way to relieve their thirst.
As a result, beverage manufacturers all over the world are seeking to expand their product portfolios through constant innovation and consistent R&D activities to satisfy consumer demand. These beverage items supports the busy and health-conscious lifestyles of their customers. In order to meet the emerging market demand, manufacturers are exploring with a variety of infusions and beverage technologies. This is due to the fact that one-size-fits-all is no more a popular trend and does not cater to customers' insatiable desire for different types of drinks.
The emergence of unique beverage dispensing technology is boosting market demand further, as continuous innovation in beverage dispensing technologies is retaining consumers' interests in consuming high-quality drinks. For example, the fountain system for managing varied viscosities and yields is critical for offering the best infusions, such as producing a cocktail and delivering the finest refreshing experience to a customer.
Sarah Jessica Parker, one of Thomas Ashbourne Craft Spirits' founding partners, has created her unique Cosmopolitan cocktail that represents her own taste. "The Perfect Cosmo by SJP," which starts at $44 for two 375ml bottles or $60 for eight cans, mixes cranberries with strawberry and lime hints before being finished with vodka and triple sec.
The Growing Popularity of Innovative Drinks Globally
Geographically, the North American region is expected to present a large market share due to strong demand from the United States of America. During the projected period, the Asia Pacific region is expected to have a high CAGR in the global craft spirits sector.
The APAC region is expected to grow at a rapid pace due to the expanding food and beverage industry, which will result in the implementation of beverage vending machines due to the strong demand for unique beverages such as craft spirits. The rising trend of evolving living conditions, as well as the consumption of ready-to-drink, ready-to-eat, and convenience food and beverages, is driving market expansion in this region.
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