A recent report titled “2024 Craft Beer and Spirits,” released by PMMI Business Intelligence, highlights a shift in consumer preferences towards craft spirits, resulting in a slowdown in the growth of the craft beer category. The rise of pre-mixed cocktails is cited as a significant factor contributing to this trend.
Based on insights gathered from 132 industry experts in the craft beer and spirits sector, the report underscores the contrasting trajectories of the two categories. While craft beer grapples with stagnant sales, craft spirits are experiencing a surge in popularity.
In the United States, both craft beer and spirits are defined by producers yielding fewer than 6 million barrels annually to be considered ‘craft.’ Similarly, producers generating under 15,000 barrels annually are categorized as ‘micro.’
Analysis from the Brewers Association’s 2023 ‘National Beer Sales & Production Data’ reveals a notable shift in the craft beer landscape. After a decade of exponential growth, craft beer has entered a phase of minimal to negative growth, with approximately 2% decrease in sales in 2023. This decline, while outperforming the overall beer category, which saw a 3% drop in sales, marks a departure from the previously robust growth trajectory of craft beer.
Despite the downturn in sales, the Brewers Association’s data indicates that the first half of the previous year witnessed more brewery openings than closures, suggesting continued interest and investment in the craft beer sector.
In contrast, craft spirits have seen steady growth. JohnsByrne’s data reveals an expansion in the craft distillery landscape, with over 2,500 craft distilleries now operating across the US. Overall sales of craft spirits experienced a significant uptick of 10.4% in 2022, underlining a shift in consumer preferences towards artisanal and small-batch spirits.
