Maryland Alcoholic Beverage Market: Regulations, Statistics, Trends, and Wholesalers

Maryland presents a complex and tightly regulated alcohol market that reflects the state’s unique regulatory approach and diverse consumer preferences. The state operates under a mixed regulatory system where the Alcohol, Tobacco, and Cannabis Commission (ATCC) oversees statewide operations, while individual counties maintain varying degrees of local control. This creates a distinctive regulatory environment with significant county-by-county variations.

Maryland had an approximate population of 6.2 million people in 2023, with 4.6 million within the legal drinking age bracket. The state’s alcohol industry features a robust production landscape with over 75 distilleries, 80 wineries, and 130 breweries contributing to the market’s vibrancy and variety.

Maryland is one of only three states in the country that does not allow any type of alcohol (beer, wine, or liquor) to be sold in retail chain stores, such as grocery stores, Walmart, or Target. Only a handful of stores that were grandfathered in before 1978 are exempt from this rule. Additionally, alcohol laws vary considerably by county, with Montgomery County operating under a “control” model where the county operates liquor stores, while others use a licensing model for private businesses.

We’ve prepared a guide to the Maryland market, which covers the following topics:

• Consumption trends
• The most popular alcohol categories
• Local guidelines

If you need help establishing your presence in Maryland, provide your information below, and we’ll contact you to share more on how we can help.

Consumption Trends In Maryland

In the five-year period from 2019 to 2023, spirits consumption grew at a CAGR of +3.39%. Over the same timeframe, wine saw flat sales with a 0.0% CAGR, while beer saw a drop in consumption with -2.08% CAGR. Below is the full chart overviewing the five-year period.

Maryland Spirits Consumption from 2019-2023 by 9-Liter Cases

Maryland Wine Consumption from 2019-2023 by 9-Liter Cases

Maryland Beer Consumption from 2019-2023 by 9-Liter Cases

Maryland State Alcohol Licensing

Maryland operates as a franchise state with the Alcohol, Tobacco, and Cannabis Commission (ATCC) overseeing statewide operations, while individual counties maintain varying local control. Maryland is a franchise state, meaning franchise laws protect alcohol beverage distributors and prevent their suppliers from terminating distribution contracts unless good cause is shown, among other requirements.

Common Licenses for Manufacturers in Maryland

Spirits

• Class 1 Distillery License – Allows distilling, rectifying, blending, and bottling of spirits such as brandy, rum, whiskey, alcohol, and neutral spirits at the licensed location. Permits the sale and delivery of products in bulk to authorized entities both within and outside Maryland.
• Class 2 Rectifying License – Required for distilleries that plan to rectify, blend, or bottle spirits in addition to distilling. Often required for distilleries offering broader production activities.
• Class 9 Limited Distillery License – For smaller operations with a 100,000 gallon annual production limit. Includes retail privileges under underlying Class D or B retail licenses, with maximum calendar year sales of 31,000 gallons, including both on- and off-premise sales.

Wine

• Class 3 Winery License – For commercial wineries that ferment and bottle wine for wholesale and retail distribution.
• Class 4 Limited Winery License – For smaller operations using Maryland-grown agricultural products. Allows fermentation and bottling of wine, and distillation and bottling of pomace brandy. The licensee must own or have under contract at least 20 acres of grapes or fruit, or ensure that at least 51% of ingredients are Maryland-grown if less than 20 acres are owned or contracted.
• Class 6 Limited Wine Wholesaler’s License – Allows a Class 4 winery producing no more than 27,500 gallons per year to self-distribute wine directly to retailers and restaurants in Maryland.

Beer

• Class 5 Brewery License – For production breweries, allowing unlimited brewing and bottling, as well as sales to wholesalers and out-of-state entities. Limited on-site public accommodation is permitted.
• Class 6 Pub-Brewery License – For breweries operating in conjunction with a restaurant (requires a Class B beer/wine/liquor on-sale license).
• Class 7 Micro-Brewery License – For smaller-scale breweries, typically with specific production limits and allowances for direct sales and tastings.
• Class 8 Farm Brewery License – For breweries located on a farm, requiring at least one ingredient grown on the farm. Allows on-site sales and consumption, as well as sales to wholesalers or directly to consumers. The annual fee is $200.

Out-of-State Brand Requirements

Spirits

• Wholesaler’s License – Out-of-state spirits brands must obtain a Maryland wholesaler’s license of the appropriate class to distribute spirits to Maryland-licensed retailers and wholesalers.
• Non-Resident Dealer Permit – Authorizes out-of-state entities to sell and deliver their own spirits from outside Maryland to authorized Maryland licensees (such as wholesalers and retailers).

Wine

• Wholesaler’s License – Out-of-state wine brands typically need a Maryland wholesaler’s license to distribute wine to Maryland retailers and wholesalers. Application requires documentation such as proof of federal permits, financial statements, business formation documents, and a Maryland Sales & Use Tax License.
• Non-Resident Winery Permit – For out-of-state wineries producing no more than 27,500 gallons annually. Allows direct sales and delivery to Maryland-licensed retailers and restaurant license holders.

Beer

• Wholesaler’s License – Out-of-state breweries must obtain a Maryland wholesaler’s license from the ATCC to distribute beer to Maryland retailers and wholesalers.
• Non-Resident Brewery Permit – For out-of-state breweries wishing to sell and deliver up to 3,000 barrels annually to Maryland-licensed retailers. Available to breweries producing less than 22,500 barrels per year.

Maryland State Alcohol Regulations

Price Posting in Maryland

Price posting is not required; however, an anti-discrimination statute is in effect, and all wholesalers must be treated the same in terms of price, discounts, quantities of merchandise, etc.

Brand/Label Registration Requirements

Labels must be approved by the Alcohol and Tobacco Tax and Trade Bureau before they may be sold and distributed in Maryland.

Direct-to-Consumer Sales and Delivery

Wine

• Direct Wine Shipper’s Permit holders may ship wine of their own manufacture to Maryland residents of legal drinking age. Initial fee is $200.00, with annual renewal required.

Spirits

• Liquor Delivery Permit – New for 2024 – In-state distillers may obtain this permit to accept and fulfill orders to consumers in the state.
• Distillery Direct Sales – Class 1 distillery licensees may sell up to 2.25 liters of products manufactured on premises for off-premise consumption to individuals participating in guided tours. Sales permitted 10am-10pm daily.
• Class 9 Limited Distillery – Maximum calendar year sales of 31,000 gallons, including both on- and off-premise sales under retail privileges.

Beer

• Beer Delivery Permit – In-state brewers may obtain this permit to accept and fulfill orders to consumers in the state.
• Class 5 Brewery Sales – May sell beer to individuals participating in guided tours or promotional events in quantities not exceeding 288 ounces per visit.
• Class 7 Microbrewery Sales – May sell retail beer brewed under their license for off-premise consumption as prepackaged beer in nonrefillable containers.

Retailer Delivery

In jurisdictions where the local licensing board has adopted regulations to authorize delivery of alcoholic beverages by third-party contractors, independent contractors, or agents, the local licensing board may issue a Local Delivery Service Permit.

Maryland Spirits Volume By Category – 2023 Data

Spirit trends in Maryland by volume and dollar sales in 2023.

Source: Beverage Information Group

Maryland Wine Volume Sales By Category – 2023 Data

Wine trends in Maryland by volume sales in 2023

Source: Beverage Information Group

Maryland Beer Volume Sales By Category – 2023 Data

Beer trends in Maryland by volume sales in 2023

Source: Beverage Information Group

Alcoholic Beverage Distributors Located In Maryland

In Maryland and the rest of the US, alcohol is sold through what’s known as the three-tier system. Within this system are importers and wholesalers. They are considered the middle tier. These middle-tier businesses sell products to distributors who end up selling the products to retailers. The retailers then sell to the consumers. Again, it’s required that all sales take place within the three-tier system in the United States.

Keep reading below to learn all about the distributors operating in the state of Maryland. Need more info on every alcoholic beverage distributor in the US? Check out the full list of distributors or fill out the contact form provided.

Wine & Spirits Distributors

Selling Alcohol In Maryland

It is essential for those seeking to engage in the sale of alcoholic beverages in Maryland to have a comprehensive understanding of the relevant laws and regulations. Please note that these laws may vary on a county-by-county basis. The following provides responses to frequently encountered queries related to the sale of alcoholic beverages in MD. Should you require further clarification or assistance, kindly contact us.

FAQs on Maryland Beer, Wine & Spirits Sales

Buying Alcohol In Maryland – Hours, Locations & Taxes

FAQs on Buying Beer, Wine & Liquor in Maryland

Source – Marylandtaxes.gov, Wikipedia.gov

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