US Craft Spirits Industry Faces 25% Drop in Distilleries

According to The Spirits Business and the American Craft Spirits Association (ACSA), the US craft spirits industry experienced one of its toughest years yet. The 2025 Craft Spirits Data Project, created in partnership with Park Street, paints a sobering picture of a sector struggling to recover amid broader market challenges.

Distillery Closures Surge Nationwide

In the 12 months leading up to August 2025, the number of active craft distilleries fell 25.6%, from 3,069 to just 2,282. The Spirits Business reports that California, the largest state for craft distilling, saw the steepest decline—dropping 45%, from 379 distilleries in August 2024 to only 207 this year.

Following California, New York ranked second with 159 distilleries, while Pennsylvania (149), Texas (126), and Washington (108) rounded out the top five. Despite their size, all five states recorded losses. Together, they represent over 32.8% of all US craft spirits producers.

Shifting Rankings Among Top States

Wisconsin broke into the top ten, ranking sixth in 2025, followed by Colorado, Florida, Oregon, and Kentucky. Meanwhile, Michigan and North Carolina, which had both previously held top-ten spots, dropped out as Oregon moved up the ranks.

Sales and Exports Continue to Decline

Sales for the US craft spirits industry continued their downward trajectory for the second consecutive year, mirroring the broader spirits market slowdown. Total volume dropped from 13.5 million cases in 2023 to 12.7 million in 2024, a 6.1% decline, while the value of sales fell 3.3% to US$7.58 billion.

Exports also struggled. The ACSA noted a 20.7% decrease in exports, down to 142,000 nine-liter cases in 2024 compared to 179,000 the previous year.

Market Share Holds, But Volume Slips

Despite the contraction, the US craft spirits industry maintained its 7.5% share of total US spirits sales by value, slightly higher than pre-pandemic levels. However, its volume share edged down from 4.6% in 2023 to 4.5% in 2024, signaling weaker overall demand.

Interestingly, craft spirits sales remained nearly evenly divided between producers’ home states (48.5%) and sales across other states (51.5%), showing continued consumer interest outside local markets.

Investments and Employment Shrink

Economic headwinds have slowed reinvestment. The Spirits Business cites the ACSA’s finding that the average investment per producer dropped from US$310,400 in 2023 to US$288,900 in 2024. Total industry investment also fell for the first time, declining to US$811 million from US$885 million the previous year.

Workforce numbers followed the same trend. Employment across the US craft spirits industry declined from 29,373 full-time workers in 2023 to 28,628 in 2024, marking the first drop in staff since the pandemic.

A Tough Year, But Not Without Resilience

Although the data reveals a challenging year, ACSA emphasized that many craft producers remain committed to reinvesting and adapting. The US craft spirits industry, while under pressure, continues to represent innovation, community roots, and local pride—qualities that may fuel its eventual recovery.

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Source of Information

The Spirits Business Article — US craft distillery numbers drop 25%, written by Nicola Carruthers

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