Craft Spirits Sales Decline for Third Straight Year

Washington, D.C. (October 6, 2026) – The American Craft Spirits Association (ACSA) and Park Street today presented highlights from the 2026 Craft Spirits Data Project (CSDP) at its Annual Craft Spirits Economic Briefing. Tom Bard (President, ACSA and Co-Founder of The Bard Distillery) and Emily Pennington (CEO, ACSA) shared key sales data and insights from the 2025 calendar year. The Craft Spirits Data Project, introduced in 2016, is a first-of-its-kind research initiative that aims to provide a solid and reliable fact base for evaluating performance and trends in the U.S. craft spirits industry. The CSDP, which seeks to quantify the number, size, and impact of craft spirits producers in the U.S., is an effort led by ACSA and Park Street.

As of August 2026, there were 2,131 active craft distillers in the U.S., representing a 6.6% decrease year-over-year. This marks the first time closures have outpaced distillery openings. 

2025, represented the second sharper leg of the craft spirits downturn that started in 2023.  The U.S. craft spirits category declined for the third consecutive year and lost share of the total U.S. spirits market. The craft spirits category represented 11.7 million 9L cases (versus 12.7 million in 2024) and $7.3 billion in sales for the year, a volume decrease of 8% and a value decrease of 3.7%.

Over the past decade, the tasting room has become the foundation of the craft spirits business. Sales at the distillery grew from 14% of craft spirits sales in 2015 to 26% in 2025, meaning more than one in four craft bottles is now sold directly to the consumer who walked through the door. The shift reflects a market that has become harder for small producers to reach. After climbing to 54% of craft sales in 2020, sales in other states fell to 51% in 2025 as distributors narrowed their portfolios to work through excess inventory, export markets shrank under tariffs, and most states continued to prohibit distillers from shipping directly to consumers.

In the face of tough conditions, craft producers sharply reduced investment in their businesses. The average amount invested by a craft producer fell from $288,900 in 2024 to $239,800 in 2025. Total investment by all craft producers declined for the second year in a row, to $526 million, down from $811 million in 2024.

BY THE NUMBERS: KEY DATA POINTS FROM THE 2026 CSDP:

• Craft spirits volume decreased by 8.0%. 11.7 million 9L cases were sold at retail in 2025, down from 12.7 million in 2024.

• Craft spirits value decreased by 3.7%, totaling $7.3 billion in sales for the year.

• Craft lost market share by volume and value. Craft’s share of the total U.S. spirits market fell to 4.2% by volume (from 4.5% in 2024) and 7.3% by value (from 7.5%).

• The number of active craft distillers fell to 2,131 as of August 2026, down 6.6% from 2,282 a year earlier.

• Employment within the U.S. craft market declined for the second year in a row, reaching 21,285 full-time domestic employees, down 25.6% from 28,628 in 2024.

• Exports, an important runway for growth, fell 13.4% in 2025, for a total of 123,000 9L cases.

CSDP BACKGROUND AND METHODOLOGY

The Craft Spirits Data Project © 2026 is a proprietary research project whose goal is to provide a solid and reliable fact base for evaluating performance and trends in the U.S. craft spirits industry. The Craft Spirits Data Project, which was first announced and presented in 2016, is the beverage industry’s first-ever comprehensive craft distilling study. The Project quantifies the number, size, and impact of craft spirits producers in the United States.

Together, ACSA and Park Street launched the Craft Spirits Data Project in October 2015. The 2026 Craft Spirits Data Project Report covers the full year 2025, with data collection taking place from June to August 2026. The Project collected data directly from craft spirits producers (DSPs).

Active craft distillers are defined as licensed U.S. distilled spirits producers that removed 750,000 proof gallons (or 394,317 9L cases) or less from bond, market themselves as craft, are not openly controlled by a large supplier, and have no proven violation of the ACSA Code of Ethics.

The Project aims to create a deeper understanding of the U.S. craft spirits landscape. The study collected comprehensive data on craft distiller production size and patterns, sources of revenue, and the category’s overall economic impact within the spirits industry. The Project also collected data on craft spirits business size and patterns, and assessed craft spirits business size and outlook by premise type at retail.

When estimating the number of producers behind the U.S. craft spirits production, the project team relies on a combination of official data released by regulatory authorities, survey data, other industry data sources both national (e.g., NABCA, ACSA) and regional (e.g., Guilds), as well as interviews and team assessments using the craft distiller definition.

ABOUT ACSA

The American Craft Spirits Association is the only national registered non-profit trade association representing the U.S. craft spirits industry. Its mission is to elevate and advocate for the community of craft spirits producers, and membership in ACSA is open to anyone.

ACSA is governed by a Board of Directors elected by the eligible voting members of the Association. Voting members must be either independent, licensed distillers (DSPs) annually removing not more than 750,000 proof gallons from bond (the amount on which Federal Excise Tax is paid) who subscribe to ACSA’s Code of Ethics.

ABOUT PARK STREET

Park Street helps emerging and established alcoholic beverage companies build and manage successful brands by leveraging technology solutions, delivering exceptional service, and utilizing Park Street’s scale advantages. Park Street invests heavily in AI driven systems to streamline importing, distribution, logistics, and back-office operations and provide suppliers a cost-effective, compliant, and secure route-to-market platform. Park Street was founded on the professional service standards of McKinsey & Company, and its talented people – from software engineers to U.S. customs specialists – distinguish the company through their expertise, responsiveness, and commitment to putting suppliers’ interests first. Park Street provides a fully integrated route-to-market solution, which in addition to importing, distribution, and logistics, includes working capital offerings, tax and duty drawback services, tariff management, customs brokerage, and educational and advisory services. With more than 100 years of combined senior management experience, Park Street leverages its scale advantages and expertise in operations, strategy, logistics, systems development, finance, regulatory compliance, deal structuring and negotiation, and network and database security to help suppliers overcome challenges.