WASHINGTON, D.C. — U.S. craft spirits sales declined for a third consecutive year in 2025, while employment, investment and the number of active distillers also fell, according to the 2026 Craft Spirits Data Project.
The findings, presented Oct. 6 by the American Craft Spirits Association and Park Street, show an industry facing sustained pressure as small producers navigate distribution challenges, weaker exports and limited access to customers outside their home markets.
Craft spirits producers sold 11.7 million nine-liter cases in 2025, down from 12.7 million in 2024, an 8% decline. Sales value fell 3.7% to $7.3 billion.
The category also lost share of the overall U.S. spirits market. Craft producers accounted for 4.2% of industry volume, down from 4.5% in 2024, and 7.3% of sales value, down from 7.5%.
For Kentucky’s independent distilling community, the national findings provide a picture of the business pressures facing smaller spirits producers. The report’s highlights do not break out Kentucky-specific sales or employment figures.
Tom Bard, president of the American Craft Spirits Association and co-founder of The Bard Distillery, and Emily Pennington, the association’s CEO, presented the findings at the annual Craft Spirits Economic Briefing.
| Industry measure | Previous comparison | Latest figure | Reported change |
|---|---|---|---|
| Craft spirits sales volume | 12.7 million nine-liter cases in 2024 | 11.7 million in 2025 | Down 8% |
| Craft spirits sales value | — | $7.3 billion in 2025 | Down 3.7% |
| Share of U.S. spirits volume | 4.5% in 2024 | 4.2% in 2025 | Down 0.3 percentage points |
| Share of U.S. spirits sales value | 7.5% in 2024 | 7.3% in 2025 | Down 0.2 percentage points |
| Active craft distillers | 2,282 in August 2025 | 2,131 in August 2026 | Down 6.6% |
| Full-time domestic employment | 28,628 in 2024 | 21,285 in 2025 | Down 25.6% |
| Total producer investment | $811 million in 2024 | $526 million in 2025 | Second consecutive annual decline |
| Craft spirits exports | — | 123,000 nine-liter cases in 2025 | Down 13.4% |
The number of active craft distillers fell to 2,131 as of August 2026, a decrease of 151 from a year earlier. According to the project, this marked the first time distillery closures outpaced openings.
Employment declined for the second consecutive year. Full-time domestic jobs fell from 28,628 in 2024 to 21,285 in 2025, a loss of 7,343 positions.
Producers also pulled back on investment. Average investment per craft producer declined from $288,900 in 2024 to $239,800 in 2025. Total investment fell from $811 million to $526 million, extending the decline to a second year.
Amid those pressures, tasting rooms have become increasingly important to the craft spirits business model. Sales at distilleries rose 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 a customer visiting the producer.
That shift places greater importance on the distillery experience as both a sales channel and a way to build customer relationships. For producers investing in tours, tastings and hospitality, on-site purchases represent a growing share of the business.
Reaching customers farther from home has become more difficult. Sales in other states accounted for 51% of craft sales in 2025, down from 54% in 2020.
The report attributes market access pressures to distributors narrowing their portfolios while working through excess inventory, export markets shrinking under tariffs and continued restrictions on direct-to-consumer shipping.
Exports declined 13.4% in 2025 to 123,000 nine-liter cases, weakening another potential avenue for growth.
The 2026 report covers the full 2025 calendar year, with data collected from June through August 2026. Its producer count reflects active distillers as of August 2026.
For the study, craft distillers are licensed U.S. producers removing no more than 750,000 proof gallons annually from bond, marketing themselves as craft and operating without open control by a large supplier. They also must have no proven violation of the association’s code of ethics.
The project combines producer surveys with regulatory data, national and regional industry information, interviews and research team assessments. Launched by the association and Park Street in 2015 and first presented in 2016, it tracks the size, performance and economic impact of the U.S. craft spirits sector. For more information, click here.
