The Rise of Premium Craft Wine & Spirits in the U.S.

Apr 14, 2025By Merum
Merum

Understanding the Shift

The U.S. alcohol market is experiencing a notable transformation, primarily influenced by Millennials and Gen Z. These younger consumers are adopting a “less but better” approach, prioritizing quality, authenticity, and experience over quantity. This evolving preference reshapes industry dynamics, compelling distributors and wholesalers to adapt their strategies.

Key Market Trends

1. Declining Alcohol Consumption Among Younger Generations

Reduced Consumption Rates: A Gallup survey indicates that from 2001-2003 to 2021-2023, the percentage of U.S. adults under 35 who consume alcohol decreased from 72% to 62%.  
Generational Drinking Habits: Statista reports that 61% of Gen Z individuals regularly consume alcohol, compared to 70% of Millennials and 75% of Gen X.  

2. Premiumization: Investing in Quality

Market Growth: According to Grand View Research, the premium spirits market was valued at approximately $215.47 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 9.7% from 2024 to 2030.  
Consumer Willingness to Spend: Despite consuming less, younger consumers are investing more in premium and craft beverages that offer unique experiences and authentic stories.

3. Emergence of Low-Alcohol and Alcohol-Free Alternatives

Changing Preferences: There’s a growing demand for low-alcohol and non-alcoholic options, with consumers seeking quality alternatives that align with healthier lifestyles.
Market Response: The industry is responding by introducing sophisticated, premium, non-alcoholic beverages to cater to this segment.

4. Emphasis on Sustainability and Transparency

Consumer Expectations: Modern consumers prioritize sustainability and transparency, favoring products that communicate their origin and production methods.
Industry Adaptation: Producers increasingly adopt sustainable practices and highlight these efforts to meet consumer demand.

5. Impact on Distribution and Retail

Evolving Retail Strategies: Retailers and bars are curating selections to include premium, craft, and sustainable options, moving away from mass-market products.
Digital Sales Growth: The rise of e-commerce and direct-to-consumer channels is facilitating access to niche products, aligning with the purchasing preferences of younger consumers.

Implications for Distributors and Wholesalers

To remain competitive, U.S. alcohol distributors and wholesalers should consider:

  • Diversifying Portfolios: Incorporate premium, craft, and sustainable products to meet evolving consumer preferences.
  • Highlighting Authenticity: Emphasize the unique stories and production methods behind products to appeal to younger consumers seeking genuine experiences.
  • Leveraging Data: Utilize market data to anticipate trends and make informed decisions about product offerings and marketing strategies.

Are you prepared to align your portfolio with today’s consumers' evolving demands? Contact us today at [email protected] and explore new opportunities in the premium craft products market.