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Current Market Baseline for American Brandy and Rum

To establish a starting point for achieving the $1 billion revenue goal by 2028 for American Brandy and Rum, we assess the current (2025) annual revenue, production volume, and number of distilleries producing these spirits in the United States. The data provides a broad overview, though precise figures for domestic production are limited due to import dominance and lack of granular data. Below is a detailed analysis.

Annual Revenue

The U.S. brandy and rum market is valued at approximately $11 billion in 2025, with significant contributions from imports. Specifically:

Domestic production represents a smaller portion due to imports like Cognac and Caribbean rum. Estimates for domestic revenue are:

Total domestic revenue: Approximately $800 million to $1.6 billion in 2025, with brandy contributing more due to its higher market value. The $1 billion goal by 2028 may focus on craft/premium segments or include tourism and exports.

Production Volume

Precise domestic production volumes are not well-documented, but estimates are based on consumption and import data:

Brandy

  • Consumption: 267 million liters (356 million 750ml bottles) in 2020, projected at 300 million liters (400 million bottles) by 2025 (Statista – Brandy Volume).
  • Imports: 19.7 million proof gallons (74.6 million liters or 99.5 million bottles) in 2022, likely 60–70% of consumption (Statista – Brandy Imports).
  • Domestic Production: Estimated at 90–120 million liters (120–160 million bottles), or 10–13.3 million 9-liter cases (1 case = 12 bottles).

Rum

  • Consumption: 151.5 million liters (202 million bottles) in 2025, with 122.9 million liters at home and 28.7 million liters out-of-home (Statista – Rum Market).
  • Imports: Significant volumes from Caribbean countries (e.g., 13.9 million proof gallons from the Dominican Republic in 2023), likely 70–80% of consumption (Statista – U.S. Dutiable Rum Import Volume).
  • Domestic Production: Estimated at 30–45 million liters (40–60 million bottles), or 3.3–5 million 9-liter cases.

Total domestic production: Approximately 13.3–18.3 million 9-liter cases (160–220 million 750ml bottles) in 2025, with brandy dominating due to higher production capacity.

Number of Distilleries

As of July 2022, there were 2,230 active U.S. distilleries, with 2,687 craft distilleries by August 2022, growing at 17.4% annually (ADI – Data; Distillery Trail – Craft Spirits Report). Many produce brandy and rum alongside other spirits:

  • Brandy: Concentrated in states like California (e.g., Copper & Kings, House of Applejay). Approximately 300–500 distilleries may produce brandy, based on craft spirits prevalence (Distilled Spirits Council).
  • Rum: Produced in states like Florida and Louisiana, with 200–400 distilleries involved, often using batch distillation (American Rum Report).

Total distilleries: Approximately 500–900 distilleries producing American Brandy and/or Rum in 2025, accounting for overlap and craft growth.

Starting Point for the $1 Billion Goal

The 2025 baseline provides a foundation for the $1 billion goal by 2028:

  • Revenue: $800 million to $1.6 billion, suggesting the goal targets craft/premium segments or includes tourism/exports.
  • Production Volume: 13.3–18.3 million 9-liter cases, with growth potential in premium segments.
  • Distilleries: 500–900, with room for expansion (e.g., 50 new distilleries).

Strategies to reach $1 billion include increasing domestic sales (6.6% CAGR for brandy, 5.8% for rum), expanding exports ($249 million for brandy, $152 million for rum in 2023), and developing tourism initiatives like the American Brandy and Rum Trail (Distilled Spirits Council).

Growth of Craft Distilleries (2022–2024)

The U.S. craft distillery sector has shown robust growth over the past three years, despite economic challenges. In 2022, there were 2,687 craft distilleries, which increased to 2,753 in 2023, a growth of 2.4%. By 2024, the number reached 3,069, reflecting an 11.5% increase from 2023.

This growth, though slower than the 17.4% rise from 2021 to 2022, demonstrates resilience amid market access issues and economic headwinds. California, New York, and Texas lead with significant distillery concentrations, supporting the production of craft brandy and rum (Craft Spirits Magazine – 2024 Craft Spirits Data Project).

Key Citations