Whiskey Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

Whiskey Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The whiskey market is projected to register a CAGR of 5.51% during the forecast period (2021-2026).

The market studied has considerably been impacted during the COVID-19 impact due to the closure of various hotels, restaurants, and alcohol shops across the world, which limited the sales of whiskey. Moreover, decreasing tourism in all parts of the world had also affected the sales of whiskey in the global market, as low footfall of tourists decreased the consumption of whiskey and other alcoholic beverages.

Consumers nowadays all over the world have more sophisticated palates than compared to the previous year ago. They are constantly looking to explore unique, high-quality alcoholic beverages such as whiskey, wine, and others. The inclusion of natural ingredients in alcoholic beverages improves their functionality, and such products are gathering a lot of attention from consumers.​ Therefore, factors such as these are driving the global whiskey market.

Furthermore, there is a rise in demand for whiskey from the developing countries of Asia-Pacific, especially India and China. According to British beverage company Diageo PLC, more than 100 whisky bars opened in China in 2016 and, in the first half of 2017, Scotch exports to China increased by 45% year-on-year to reach 27 million pounds.

However, stringent government trade regulations are expected to hinder the growth of the market studied during the forecast period. For instance, in 2018, the US government imposed a 25% import tariff on EU agricultural goods, which impacted liqueurs, like single malt Scotch and single malt Irish whiskey. The imposed tariff will make Scotch whisky more expensive for Americans, thereby hampering the growth of the market studied.

Key Market TrendsGrowing Preference for Organic Whiskey

Demand for variety in scotch whiskey from fast-growing emerging markets and the request for lower alcohol varieties and organic whiskey among health-conscious drinkers are driving the market forward. Moreover, with the increasing focus on healthy living across the world, people prefer these varieties of whiskeys. The value of organic alcoholic beverages exported from Denmark increased to 129.60% from the year 2013 to 2017 (Statistics Denmark). This has driven the increase in preference for organic whiskeys of Denmark and other countries from the rest of the world. Companies, such as Bainbridge Organic Distillers, have developed artisan-distilled spirits that are made from the USDA-certified organic wheat, barley, triticale, and corn, grown especially for their distillery, and the quality of each of their products is a direct reflection of the superiority of their grains.

United States Holds the Major Share of the Whiskey Market

The US whiskey market is driven by premiumization trends and emerging consumer trends toward brands with innovation and a diversification of their product ranges. Therefore, reflecting on the American population’s increased interest in premium products, over the past five years, high-end premium and super-premium brands drove the growth. Owing to this factor, the high-end premium revenues were up by 37% and super-premium by 136% (as per reports published by Distilled Spirits Council)​, thus, driving the whiskey market forward.​

Additionally, the booming demand for spirits in on-trade channels, including full-service restaurants and cafés/bars (than off-trade sales performance), is expected to augment the demand for whiskey further in the United States over the forecast period. ​​

Competitive Landscape

The whiskey market is witnessing high competition owing to the diversified product portfolio of key players and growing investment in the strategic expansion, which is leading to intense competition among the existing players. In addition, key players are focusing on online distribution channels for online marketing and branding of their products to expand their geographical reach, as well as customer base. Key players operating in the whiskey market include Diageo PLC, Bacardi Ltd, Asahi Group Holdings Ltd, Pernod Ricard SA, and Suntory Beverage & Food Ltd, among others.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned

IBM Corporation
Oracle Corporation
Internap Corporation
Packet Inc. (An Equinix Inc. Company)
Scaleway Inc.
Amazon Web Services Inc
Rackspace Inc.
CenturyLink, Inc.
LightEdge Solutions, Inc

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