The US craft spirits industry recorded its second consecutive year of declining sales in 2024, as producers faced persistent economic and distribution challenges, according to data released this week.
Twelve-month sales fell by 6.1% in volume to 12.7m nine-litre cases, and by 3.3% in value to US$7.58bn, as reported in the American Craft Spirits Association (ACSA) and Park Street’s latest annual report in the ‘Craft Spirits Data Project’. Meanwhile, the number of active craft distilleries in the country decreased sharply to 2,282 as of August this year, down more than 25% from 2024 levels.
The ACSA said part of the decline reflected a revision of its research methodology rather than outright closures. That said, employment within the sector dipped for the first time post-pandemic, falling to 28,628 full-time staff.
Craft’s share of the US’s total spirits market by volume was down to 4.5%, compared to 4.6% in 2023 and 4.9% the year before. Value share held steady, however, at 7.5%, although marginally down from 2022’s 7.7%.
Exports were down by about 21% in 2024 to 142,000 cases, with many producers shifting their focuses towards home-state sales – now accounting for 48.5% of total volumes. The total amount invested by craft distillers fell to US$811m, marking the first contraction since tracking began in 2016.
ACSA CEO Margie Lehrman described the results as “a wake-up call” for the country’s policymakers, citing the need for greater market access and regulatory flexibility to support independent distillers.
Earlier this month, trade association the Distilled Spirits Council of the US (Discus) warned that the current weakness in exports for its members risked putting the country’s distillers under “mounting pressure and financial strain”.
