Craft spirits to see $37bn boost by 2025

Global technology research company Technavio has reported that the craft spirits sector will see an increase in value by US$37 billion between 2020-2025.

In its Alcoholic Beverages Market by Product and Geography – Forecast and Analysis 2022-2026 report, Technavio revealed that the craft spirits market is projected to see a growth momentum accelerating at a compound annual growth rate (CAGR) of 22.56%, on a global basis.

The company accredit the predicted boost for the sector to an ‘increase in demand for newer flavours and varieties’.

Technavio spotlights Generation X and Millennial consumer groups to be the main driver of this trend.

It also considers Diageo to be one of the ‘most important global players’ in the craft spirits segment.

In March, the Indian branch of Diageo acquired a minority stake in Nao Spirits, producer of gins Greater Than and Hapusa.

Diageo India said the move is an ‘opportunity to strengthen its participation’ in the country’s growing premium gin segment, as drinkers seek out local and ‘craft-oriented’ products.

Additionally, Technavio expects the value of the global alcoholic beverages market to grow by US$393bn from 2021-2026, rising at a CAGR of 3.23%.

Last year, the American Craft Spirits Association (ACSA) revealed that US craft spirits sales grew by 7.3% in 2020.

However, these figures meant that the category’s sales increased at a slower rate in 2020, with the growth rate falling to single digits.