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The Irish whiskey market size is forecast to increase by USD 2.40 billion at a CAGR of 6.78% between 2023 and 2028. Several key trends are shaping its growth trajectory. The increasing demand for premium whiskey, driven by consumers' willingness to pay a premium for superior taste and quality, is a significant market growth factor. Furthermore, the growing preference for organic whiskey, as part of the broader health and wellness trend, is another significant trend. Consumers are increasingly seeking out whiskey produced using organic farming practices and free from artificial additives. Additionally, heightened health awareness among consumers is leading to a shift towards whiskey varieties with lower sugar content and fewer calories. These trends present both opportunities and challenges for players in the market. On the one hand, they offer the potential for innovation and differentiation. On the other hand, they necessitate a deep understanding of consumer preferences and a commitment to sustainable and authentic production methods.
The market experiences a significant demand driven by various factors. Consumers with disposable income exhibit favorable attitudes towards premium Irish whiskey, leading to its increasing acceptance worldwide. Key players in the market, such as Diageo and William Grant Sons, focus on crafting unique flavors and innovative packaging to cater to this trend. The production process of Irish whiskey involves the use of unsalted malt made from barley and, in some cases, malted oats. The carbon content in the fermentation process is crucial for the final product's taste and aroma. The market encompasses both blended whiskeys and those from single distilleries.
The trade war and tax rate issues, such as the excise ratio and price per hectare, can impact the market's growth. Historical events like the American prohibition and the e-trade boom have also influenced the market's trajectory. The market's future relies on continuous innovation, adherence to traditional production methods, and strategic pricing to maintain consumer interest.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The offline trade segment is estimated to witness significant growth during the forecast period. The market continues to thrive in the global alcoholic beverages sector, with a significant presence in various distribution channels. Customs regulations facilitate the export of Irish whiskey to medical institutions, corporates, and distilling communities worldwide. The taxation pattern, favorable for whiskey production, further bolsters the industry's growth. In the technological environment, E-commerce platforms have emerged as an alternative distribution channel, catering to the modernization and preferences of smart buyers. Young adult populations in prosperous economies with high disposable income and demographic growth contribute to the market's expansion.
Innovative products with varying alcoholic content, design, taste, and organic content attract a wide consumer base. Traditional sales channels, including restaurants, sports clubs, and second-largest markets like Oktoberfest, continue to cater to the adult population's preferences for clean labels and blended whiskeys. Key players, such as Castle Brand, contribute to the market's growth with their offerings. The market's success can be attributed to its ability to cater to diverse consumer preferences and distribution channels, making it a dynamic and innovative industry.
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The Offline trade segment accounted for USD 2.67 billion in 2018 and showed a gradual increase during the forecast period.
Europe is estimated to contribute 36% to the growth of the global market during the forecast period. Technavio's analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
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The market exhibits significant growth, driven by various factors. Customs regulations facilitate the import and export of whiskey, fostering a thriving business environment. The medical community recognizes the potential health benefits of moderate whiskey consumption, adding to its appeal. Corporates and distilling communities continue to invest in modernization and technological advancements, producing innovative products with varying alcoholic content. E-commerce platforms have revolutionized sales, allowing smart buyers to easily access premium Irish whiskey brands. The young adult population, with a prosperous economy and high disposable income, fuels the demand for these brands.
Demographic growth further expands the market, attracting an adult population seeking clean label, organic, and blended whiskey offerings. Major players dominate the market with their extensive distribution networks and diverse product portfolios. Innovative design and taste have become essential factors in consumer decision-making. Traditional events like Oktoberfest continue to promote Irish whiskey, while the alcoholic beverage finds its way into restaurants and sports clubs. The market, the second-largest in the world, continues to thrive, offering a wealth of opportunities for both established and new players.
With a focus on premium products and a growing consumer base, the future looks promising for this dynamic industry.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Increasing demand for premium whiskey is the key driver of the market. The market in the US is experiencing notable growth, driven by the escalating preference for premium and craft whiskey among consumers. This trend is influenced by various factors, including the rise in per capita income and the increasing popularity of Irish whiskey's unique smoothness and rich flavors. companies are responding to this demand by introducing new offerings which boast high ABV levels and distinctive tastes. Importers are capitalizing on this trend by expanding their offerings to include a wider range of Irish whiskeys.
Shooting recipes and adhering to bar etiquette are essential aspects of whiskey culture, contributing to the growth of spirits tourism. Ageing techniques, such as caramelization and barley malt, play a significant role in the production of Irish whiskey, adding to its complex flavors and smoothness. Global Irish whiskey sales have been impacted by macro-economic factors, including trade wars and e-trade, as well as micro-economic factors, such as the financial position and growth strategies of key players. The price per hectare and excise ratio are critical considerations for companies, as tax rates vary significantly between countries. The market caters to diverse consumer segments, including the Mass segment and Muslim populations, who have unique preferences and requirements.
The blending technique used in producing blended whiskeys is a crucial factor in their appeal. The preference for taste and quality is a key driver of growth in the market, making it an attractive investment opportunity for those seeking to enter the spirits industry.
Growing preference for organic whiskey is the upcoming trend in the market. The market experiences significant growth due to the increasing demand for diverse whiskey offerings from emerging economies, such as Ukraine and Libya, where consumers seek unique flavors. Other producers cater to this trend by offering unsalted malt whiskeys made from locally sourced barley. The smoothness and distinct character of Irish whiskey, often used in shooting recipes and adhering to bar etiquette, also contribute to its popularity. Spirits tourism plays a crucial role in the market's expansion, with attractions showcasing the traditional Single pot still production method using malted oats. Ageing and caramelization further enhance the whiskey's flavor profile, making it a preferred choice among health-conscious consumers seeking lower alcohol variants.
Global Irish whiskey sales have seen a rise, with blended whiskeys accounting for a significant market share. However, trade wars and e-trade restrictions, as well as tax rates and excise ratios, impact the financial position of distilleries. As a result, companies focus on micro-economic factors and growth strategies, attracting investors through an investor's guide. Muslim populations, particularly in countries like Ukraine and Libya, show a preference for single grain whiskeys due to religious dietary restrictions. These factors influence the market dynamics and future growth prospects of the Irish whiskey industry.
Growing health awareness among consumers is a key challenge affecting the market growth. The market, with its rich heritage and unique production methods, has emerged as a formidable contender in the global beverage industry. Notable distilleries employ traditional techniques using unsalted malt and barley to create a smooth and distinct flavour. Irish whiskey's smoothness and versatility have made it a popular choice for shooting recipes and bar etiquette, contributing significantly to spirits tourism. Ageing in oak barrels imparts a complex flavour profile, with notes of caramel and vanilla, while the use of malted oats in single pot still whiskey adds an additional layer of depth.
The market's growth is influenced by various factors, including the preference of taste among consumers, financial position, and growth strategies of key players. Other importers have played a crucial role in making Irish whiskey accessible to a wider audience. However, the market faces challenges due to micro-economic factors like price per hectare, excise ratio, and tax rate. The ongoing trade war and e-trade restrictions have also impacted the market's growth. Despite these challenges, the market continues to attract investors due to its potential for growth. The market caters to various segments, including the mass segment and blended whiskeys, which cater to a broader consumer base.
The blending technique used in Irish whiskey, which involves a combination of malted and unmalted barley, contributes to its unique taste and appeal. The Muslim populations in Libya and other regions present a significant opportunity for the market, as they show a growing preference for alcohol-free and low-alcohol beverages.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator's stage to the laggard's stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Asahi Group Holdings Ltd. -The company offers Irish whiskey under the brand Nikka.
The market research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market is a significant segment in the global beverage industry, characterized by its unique distillation process and rich heritage. The production of Irish whiskey involves triple distillation, resulting in a smooth and mellow taste. The market is driven by various factors, including the growing popularity of Irish whiskey worldwide, increasing consumer preference for premium spirits, and innovative marketing strategies. The market is witnessing a steady growth, with key players focusing on expanding their production capacity and enhancing their product offerings. The market is segmented based on product type, distribution channel, and region. The major product types include single malt, blended, and grain Irish whiskey.
Moreover, the distribution channels include supermarkets/hypermarkets, specialty stores, and online retailers. The market is expected to grow at a steady pace in the coming years, with key markets in Europe, North America, and Asia Pacific. The market is also witnessing a trend towards the production of flavored Irish whiskey, which is gaining popularity among consumers. The market is expected to be influenced by various factors, including government regulations, consumer preferences, and competitive dynamics.
Market Scope |
|
Report Coverage |
Details |
Page number |
169 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.78% |
Market growth 2024-2028 |
USD 2.40 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.23 |
Regional analysis |
Europe, North America, APAC, South America, and Middle East and Africa |
Performing market contribution |
Europe at 36% |
Key countries |
US, Germany, Ireland, India, and Russia |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Asahi Group Holdings Ltd., Bacardi Ltd., Becle SAB de CV, Brown Forman Corp., Diageo Plc, Dingle Distillery, Glendalough Distillery, Irish Distillers International Ltd., P J Rigney Distillery and International Brands Ltd, Pernod Ricard SA, Quintessential Brands Group, Suntory Holdings Ltd., Teeling Whiskey Co. Ltd., WEST CORK DISTILLERS, and William Grant and Sons Ltd |
Market dynamics |
Parent market analysis, market growth inducers and obstacles, market forecast, fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, market condition analysis for the forecast period |
Customization purview |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Distribution Channel
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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