The number of active US ‘craft’ distillers has declined while sales also shrunk in value and volume terms for the third consecutive year.
As of August, the US had 2,131 active ‘craft’ distilleries, a 6.6% decline compared to the previous year, findings from the American Craft Spirits Association show (ACSA).
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In the 12 months to the end of August, sales volumes of ‘craft’ spirits fell 8% year-on-year to 11.7 million nine-litre cases in 2025.
Sales value meanwhile dropped 3.7% year-over-year to $7.3bn, according to an industry report released jointly by the ACSA and Park Street.
The downturn reduced ‘craft’ spirits’ share of the broader market to 4.2% by volume and 7.3% by value, according to the report.
The commercial slump also triggered significant workforce cuts in the sector, with “full-time domestic employment” declining 25.6% in the 12 months to 21,285 positions, according to the report.
Demand for craft spirits was also down. Exports dropped 13.4% to 123,000 nine-litre cases in 2025.
“Exporting has become drastically harder for craft distillers, and the trade disputes of the past year made it harder still,” the ACSA said in a release.
Retail distribution also became more difficult over the past 12 months. Distillers struggled to retain shelf space as wholesalers reduced their brand ranges and worked through excess inventory. State restrictions on direct-to-consumer shipping further “constrained” expansion beyond producers’ home markets.
Out-of-state sales accounted for 51% of craft transactions in 2025. The figure was 54% in 2020.
Whilst every distribution channel lost absolute volume in 2025, the channel mix shifted towards distillery premises. On-site distillery sales expanded their share of the total craft mix, rising from 14% in 2015 to 26% in 2025, supported by more than 40 distillery trails driving tourist traffic.
Sustained market pressures led producers to cut back significantly on business investment for the second consecutive year. Investment fell for a second consecutive year. Average spending per producer declined to $239,800 in 2025, from $288,900 in 2024.
Total sector investment dropped to $526m, down from $811m a year earlier.
