III. Industry Analysis
[Company Name] will compete against other craft distilleries and major regional or national chains. The US Whiskey and Bourbon Distillery industry has experienced robust growth over the past five years due to favorable economic conditions, including an increase in consumer spending on alcohol. There were 657 whiskey & bourbon distilleries in the US, with a market size of nearly $5 billion. The global spirits market has grown at a CAGR of 4.3% to $142.9 billion and is expected to grow at a CAGR of 2.2% over the next 5 years.
The demand for premium, super-premium, and flavored spirits, which include the craft and artisanal varieties, has increased among global consumers. The craft spirits market has enjoyed growing popularity in bars, and beverage professionals have been incorporating craft spirits in cocktails through creative applications to cater to this rising demand.
Moreover, flavored spirits have become increasingly popular, especially among upwardly mobile and trendy young people. This is one of the reasons many distillers have launched innovative twists on their classic brands.