This research aims to answer questions regarding how Serbian distillers evaluate the quality of their products and their chances on the market. The author also intends to determine the number of market segments for rakija, the Serbian national spirit. As this is the first known study of distillers and the economics of rakija production in Serbia, this research will be exploratory in nature. A quantitative survey of professional and hobbyist rakija distillers (N = 104) was conducted online in October 2021, which means that at the 95% probability level, the sampling error is below 10%. Rakija distillers rated the quality of their rakija as relatively high – 7.88 out of 10, while, conversely, they rated the market situation as relatively low – 2.67 out of 7. They are very enthusiastic about their future market prospects – 4.19 out of 7, but with current business approaches and their outdated production methods, their future does not look bright. It has been found that the rakija market in Serbia has three segments in terms of price: low-priced (up to 500 dinars), mid-priced (between 501 and 1000 dinars), and high-priced (1001 dinars and above). The median, or medium price of all rakija in our sample, was 750 dinars. Finally, a feasible strategy for the rakija market was synthesized by the SWOT/TOWS analysis. The research findings will be useful not only for distillers, but also important for agricultural policymakers as stricter standards need to be introduced to ensure rakija quality.