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Craft Beer Sales Flatten as Craft Spirits Popularity Grows

Pre-mixed cocktails and consumer preferences away from beer and malt-based drinks are contributing to significant growth in craft spirits.

Brewers are looking for ways to reverse a contraction in sales, with strategies including diversifying product portfolios.
Brewers are looking for ways to reverse a contraction in sales, with strategies including diversifying product portfolios.
Pramote Polyamate via Getty Images

The competitive force of craft cocktails is growing, as craft brewers look to reverse a contraction in sales, according to PMMI Business Intelligence’s “2024 Craft Beer and Spirits” report.

Business Intelligence researchers compiled the experiences of 132 craft beer and spirits industry professionals for the report, using an online survey and direct long-form interviews to gauge each category’s current outlook.

One of the most prominent areas where the two categories differ is the overall momentum of sales. While craft beer has struggled to find avenues of growth in recent years, craft spirits are riding a wave of popularity, propelling the industry to new heights.

“The fact that shipments are down 6.9% over the last year in the craft beer market, our biggest challenges will be to keep costs down, keep people interested in craft beer, and diversify into cider,” said one participating owner of a craft microbrewery.

In both beer and spirits, “craft” is defined as a producer that yields under 6 million barrels annually. A producer is considered “micro” if they yield under 15,000 barrels annually.

   Tune in to the "Operational Trends: Craft Beer and Spirits" webinar March 12 for more information on today's industry trends.

Craft brewing experienced unsustainable growth in the past decade, and it is now entering a phase of contraction.Craft brewing experienced unsustainable growth in the past decade, and it is now entering a phase of contraction.PMMI Business Intelligence: 2024 Craft Beer and Spirits - Success Through PackagingSales contraction in craft beer