Distilleries have experienced significant growth in the past few years. COVID-19 lockdowns lead to elevated alcohol consumption in general, but now that social and business restrictions have been lifted in several countries, tasting rooms have renewed traffic. A significant portion of this growth can be attributed to the adoption of micro-distilleries, which are popping up globally. Micro-distilleries are often craft-style facilities – far smaller than their commercial counterparts – that produce hard alcohol in small quantities, usually in single batches.
Many commercial distilleries are located in rural areas. In contrast, micro-distilleries – their equipment, barrel warehouses and mash rooms – are often located in repurposed buildings in densely populated urban centers. The good times are expected to keep barrels rolling for years to come. Grand View Research forecasted a compound annual growth rate (CAGR) of 30.9% for the U.S. craft spirits market between 2020 and 2030.
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Tags: manufacturing, risk, risk management