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The whiskey market size is forecast to increase by USD 37.54 billion at a CAGR of 6.25% between 2023 and 2028. The market is experiencing significant growth, driven primarily by the increasing demand for premium whiskey variants. Among these, single-malt whiskeys are gaining immense popularity. This trend is influenced by the rising preference for superior taste and quality among consumers. Simultaneously, the emergence of online distribution platforms is revolutionizing the way whiskey is bought and sold. These platforms offer convenience, a wider selection of premium whiskeys, and competitive pricing, making them an attractive option for consumers. As a result, the market is poised for continued growth, with a focus on premium and high-quality offerings.
The market is experiencing significant growth, driven by the changing consumer lifestyle and purchasing power of millennials in Western countries. This demographic is known for their appreciation of spirits, including whiskey, beer, wine, and cocktail culture. The ingredient-focused trend in alcoholic beverages has led to a heightened interest in the originality, provenance, and quality of whiskey. Spirit tourism is another factor fueling the on-trade recovery in the whiskey industry. Consumers are increasingly seeking authentic experiences, leading to an increase in whiskey imports from emerging markets such as Japan and Ireland. The digital frontier has also played a role in the market's expansion, with alcohol shops and other retailers leveraging e-commerce platforms to reach a wider audience.
Despite these opportunities, the market faces limitations. Regulations and taxes in various regions can impact sales, and consumers' preferences and trends are constantly evolving. Nonetheless, the market's growth potential remains strong, with Scotch whiskey continuing to be a key player in the industry.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD million" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
The off trade segment is estimated to witness significant growth during the forecast period. The market caters to a diverse range of consumers, with a growing number of health-conscious drinkers preferring Lower Alcohol Varieties. Organic Whiskey, produced by distilleries such as Bainbridge Organic Distillers, is another trending choice, reflecting the rising consumer requirement for eco-friendly and natural products. Grains used in whiskey production, including corn, barley, and rye, are subject to premiumization trends, leading to the emergence of innovative brands. Drinking trends indicate a shift towards full-service Restaurants, Cafés/Bars, and Online Marketing platforms as preferred purchasing channels. Whisky's rich cultural background and history, coupled with its cultural value, continue to attract heavy alcohol drinkers and younger generations.
Further, flavoured spirits and artistry and craftsmanship are essential elements of the premium spirit market, which is influenced by luxury market trends. Distilleries worldwide offer whisky tastings, educational seminars, and cocktail-making classes, emphasizing the importance of mixology and bartenders in the industry. Emerging nations are adopting Western drinking traditions, leading to an increase in internet shopping and e-commerce sales. Product information and doorstep delivery are crucial factors in the consumer decision-making process. American whiskey and Irish whiskey are popular whiskey types, each with unique characteristics and cultural significance. The market is witnessing a rise in consumer preferences for these premium spirits, driven by their distinct flavors and the stories behind their rich histories.
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The off trade segment was valued at USD 22.03 billion in 2018 and showed a gradual increase during the forecast period.
APAC is estimated to contribute 51% 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 caters to a diverse range of consumers, with a growing number of health-conscious drinkers preferring Lower Alcohol Varieties. Organic Whiskey, produced by distilleries such as Bainbridge Organic Distillers, is another trending choice, reflecting the rising consumer requirement for eco-friendly and natural products. Grains used in whiskey production, including corn, barley, and rye, are subject to premiumization trends, leading to the emergence of innovative brands. Drinking trends indicate a shift towards full-service Restaurants, Cafés/Bars, and Online Marketing platforms as preferred purchasing channels. Whisky's rich cultural background and history, coupled with its cultural value, continue to attract heavy alcohol drinkers and younger generations.
Also, flavoured spirits and artistry and craftsmanship are essential elements of the premium spirit market, which is influenced by luxury market trends. Distilleries worldwide offer whisky tastings, educational seminars, and cocktail-making classes, emphasizing the importance of mixology and bartenders in the industry. Emerging nations are adopting Western drinking traditions, leading to an increase in internet shopping and e-commerce sales. Product information and doorstep delivery are crucial factors in the consumer decision-making process. American whiskey and Irish whiskey are popular whiskey types, each with unique characteristics and cultural significance. The market is witnessing a rise in consumer preferences for these premium spirits, driven by their distinct flavors and the stories behind their rich histories.
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.
The increasing demand for premium whiskey is the key driver of the market. The market is experiencing significant growth due to the increasing preference for premium and craft whiskey variants among consumers. This trend is driven by the rise in per capita income worldwide, enabling individuals to afford higher-end whiskey offerings. Canadian whiskey, in particular, is gaining popularity, with companies introducing new premium bottles and cans to cater to this demand.
For instance, Dunville introduced an 18-year-old single-malt whiskey with a high alcohol by volume (ABV) of 60.63%, while Micil Distillery launched two new Irish whiskeys, including Micil Inverin Small blended Irish whiskey with a 46% ABV and a price range of USD45 and Micil Earls Island Single Pot Still Irish Whiskey with a 46% ABV and a price range of USD55. These new offerings underscore the market's expansion and the growing consumer interest in premium whiskey options.
The increasing demand for Irish whiskey and American bourbon is the upcoming trend in the market. The market is experiencing significant growth, with Irish and Canadian whiskey segments leading the charge. Irish whiskey, in particular, is gaining popularity due to its sweet and smooth taste, competitive pricing, and increasing demand among new and female consumers.
Also, this trend is expected to continue, increasing Irish whiskey's market share in the coming years. Canadian whiskey also contributes to the market's growth, with its unique flavor profile and strong consumer base. The market is expected to see continued expansion as consumers seek out new and interesting bottled and canned whiskey offerings.
The increasing competition from other alcoholic beverages is a key challenge affecting the market growth. The market faces challenges from the expanding consumer preferences for various other alcoholic beverages, including vodka, rum, brandy, and mezcal. In the US and other American nations, the rising demand for these spirits has adversely affected whiskey sales.
Also, European countries, such as Germany, France, Italy, Russia, Belgium, and Sweden, have reported a growing interest in spirits like vodka, rum, whiskey, and tequila, which has negatively impacted the revenues and volumes of the market in these regions. Conversely, China, the largest market for alcoholic beverages in APAC, exhibits a significant demand for whiskey, particularly Canadian whiskey, which is sold predominantly in bottles and cans.
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.
John Distilleries Pvt. Ltd. - The company offers whiskey that has a smooth, warm, and sweet taste with a subtle rye spice note; caramel and honey mingle with just enough oak and char to round out the richness of the whiskey.
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.
Millennials' consumption patterns reflect a strong focus on Intelligence on products, pricing, customers , as they prioritize value and transparency in their purchasing decisions. This generation often seeks detailed information about products, relying on online reviews and social media to guide their choices.
Additionally, they demand intelligence on suppliers, particularly in the context of import-export, ensuring that ethical sourcing and sustainability are prioritized. As a result, brands that align with their values tend to thrive. Furthermore, millennials' high standard of living influences their preference for quality over quantity, leading to a greater willingness to invest in products that offer long-term benefits and align with their lifestyle aspirations.
Market Scope |
|
Report Coverage |
Details |
Page number |
174 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.25% |
Market growth 2024-2028 |
USD 37.54 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
5.78 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 51% |
Key countries |
India, US, China, France, and Canada |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Allied Blenders and Distillers Pvt. Ltd., Asahi Group Holdings Ltd., Bacardi Ltd., Beam Suntory Inc., Brown Forman Corp., Constellation Brands Inc., Campari Group, Diageo Plc, Heaven Hill Sales Co., John Distilleries Pvt. Ltd., Kirin Holdings Co. Ltd., Luxco Inc., LVMH Moet Hennessy Louis Vuitton SE, Pernod Ricard SA, Sazerac Co. Inc., The Cotswold Distilling Co. Ltd., The Edrington Group Ltd., William Grant and Sons Ltd., and Woodinville Whiskey Co. |
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 |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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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 Product
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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