Kentucky vs. The Rest Kentucky continues to dominate the U.S. distilling scene. The Commonwealth accounts for 27% of the entire country’s spirits output and employment. For comparison, Tennessee sits in a distant second place with 8.4%.

• The Barrel Tax Burden Kentucky remains the only place in the world that taxes aging barrels of spirits. In 2025, distillers paid an all-time high of $75 million in barrel taxes, a staggering 163% increase over the last five years.

• A $10 Billion Aging Value As Bourbon ages, so does its value. The tax-assessed value of all barrels aging in Kentucky hit a record $10 billion in 2025, representing a 27% jump in value from just one year prior.

• Navigating Trade Headwinds Ongoing trade disputes are taking a toll on global reach. Kentucky whiskey exports sat at $363 million in 2024, which is 26% lower than the peak seen in 2019. Exports to major markets like the EU and Canada continue to see double-digit declines.

• Bourbon: Built by Kentucky Farmers In 2025, distillers purchased over 27 million bushels of corn, and a record-high 84% of that came directly from Kentucky farmers. The industry now consumes roughly 10% of the state’s total corn production.

• The Ripple Effect Bourbon’s impact goes far beyond the glass. It has the second-highest job multiplier in the state, trailing only the automobile industry. From local truckers to cooperages, the industry supports a massive web of spin-off jobs.

• Investing in the Future The industry isn't slowing down. KDA members are currently in the middle of a $3.55 billion capital investment campaign. With $2.1 billion invested since 2020 and another $1.45 billion planned, the infrastructure of Bourbon is being rebuilt for the next generation.

Inventory & Production

• 17 Million Barrels and Counting There is currently a record-breaking inventory of 17.1 million barrels of spirits aging in Kentucky rickhouses. Of those, 16.1 million are Bourbon, marking an 11% increase in inventory from the previous year.

• The 3-Million Mark For the second year in a row, Kentucky distillers have filled over 3 million barrels of Bourbon in a single year. While 2024 production was down slightly from 2023, the consistent volume highlights the massive global demand for the Bluegrass State's finest export.

Economic & Industry Growth

• The $10.6 Billion Milestone Kentucky Bourbon has officially matured into a $10.6 billion signature industry. With more distilleries in more counties than ever before, the spirit of the Commonwealth is stronger than it has ever been in history.

• A Job Engine for Kentucky Distilling now supports 23,935 jobs across the state. Despite recent economic shifts, the industry added 800 jobs in just the last two years, providing $2 billion in annual payroll and benefits to Kentucky families.

• A Post-Prohibition Peak We are living in a new Golden Age of distilling. Kentucky now boasts 125 licensed distilleries operated by 104 different companies. This footprint spans 45 counties—the highest level of participation seen since the Repeal of Prohibition in 1933.