The global craft vodka market is expected to expand at a 5.49% CAGR, reaching USD 7.056 billion in 2031 from USD 5.120 billion in 2025.
Craft vodka is a newly developed category of vodka produced in small quantities by a craft distillery, generally using rare or novel ingredients or manufacturing techniques. Craft distilleries are experimenting worldwide with innovative ingredients to manufacture craft vodka. Some of the top mentions include one Tasmanian distiller who uses whey, a byproduct of cheese, as the fermentable organic base and another who uses a range of native Australian botanicals, such as seaweed and wattle seed, to help add subtle hints of flavor to the spirit, and finally, one in the UK who uses cow's milk to craft their unique vodka.
Vodka is an extremely versatile spirit used in a long list of cocktails. The premium and high-end craft vodka has experienced significant growth and development during the analysis period. Several recent premium launches, particularly celebrity vodka brand launches, have been witnessed over the years. Other factors, including favorable consumer feedback regarding the taste of craft vodka, growing demand for vodka, continuous innovative product launches by key market players such as gluten-free craft vodka, increased cocktail consumption, and the growing number of vodka distilleries are also expected to drive the growth of the global craft vodka market during the projection period.
However, the implementation of strict rules and regulations by the government, unstable prices, and high pressure on the supply of raw materials, along with a lack of knowledge, arare some of the key challenges to market growth.
The growing vodka consumption and new product launches are boosting the market growth.
The demand for craft vodka by consumers has been on the rise. According to the Distilled Spirits Council of the United States, Vodka has been the industry's backbone, accounting for 31% of total volume. The continuous popularity of flavored vodkas has been a significant growth driver, accounting for around 21% of all vodkas sold. In the United States in 2019, 74.1 million 9-liter cases of vodka were sold, earning US$6.6 billion in revenue for distillers. Nowadays, craft vodkas can be infused with natural spices, pleasant citrus tastes, raspberry, vanilla, and other flavors. According to Drizzly, an online alcohol e-commerce retail platform, vodka is the second-highest spirit sold after whisky.
Craft vodka and vodka-based drinks are becoming increasingly popular in bars worldwide. According to MGM Resorts International's famous barman and executive director of beverage and corporate mixologist Julian Cox, vodka and tequila are the most sold spirits in their bars.
The proliferation of celebrity-owned companies has also contributed to the growth of craft vodka. The spirit's recognition increased as mega-celebrities like Jason Momoa and Jason Derulo became involved. In January 2023, international superstar Jason Mamoa announced the launch of his sustainable craft vodka brand, Meili.
The growing polarity of craft vodka has led to a continuous product launched by key market players. For instance, in October 2020, the Indian spirit company Alcobrew Distilleries launched its craft vodka brand, One More Pure Craft Vodka. The vodka comes in two new different flavors - Plain and Green Apple. The craft vodka was created utilizing the most recent 'Eco-fine' technology, resulting in an incredibly pure combination.
North America is anticipated to hold a significant share of the global craft vodka market during the forecast period.
North America is anticipated to hold a significant market share in craft vodka. This region will witness high growth during the forecast period due to the high vodka demand. Vodka’s popularity in the United States and Canada has grown thanks to martinis, but customers are increasingly spreading out to discover other usage situations, such as super-premium craft vodka. Vodka has been consumed in large quantities in countries like the United States. For instance, Vodka has been the industry's backbone, accounting for 31% of the total volume. In the United States in 2019, 74.1 million 9-liter cases of vodka were sold, earning US$6.6 billion in revenue for distillers. The continuous popularity of craft vodkas has been a significant growth driver, accounting for around 22% of all vodkas sold. This versatile beverage may be used in classic cocktails like vodka Martinis and the ever-popular Screwdriver. Canada, the United States, and Mexico are prime markets in the North American region.
In February 2023, Beam Suntory plans to extend its product variety in the next 18 months by introducing four new items from its Japanese parent business House of Suntory's portfolio, according to Ruchika Gupta, Marketing Director, Beam Suntory India. The business will launch its single malt whisky Yamazaki, Jim Beam bourbon, Japanese craft vodka Haku and a super-premium tequila brand.
Market Segmentation:
By Type
Flavored craft vodka
Unflavored craft vodka
By Distribution Channel
Online
Offline
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
France
United Kingdom
Spain
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
India
Japan
South Korea
Indonesia
Thailand
Others