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The whiskey market is estimated to grow at a CAGR of 6.02% and the size of the market is forecast to increase by USD 34,078.61 million between 2022 and 2027. The growth of the market depends on several factors, including increasing demand for premium whiskey, the emerging online distribution platform, and the increasing demand for premium single-malt whiskey.
This report extensively covers market segmentation by distribution channel (off trade and on trade), product (scotch whiskey, American whiskey, Canadian whiskey, Irish whiskey, and others), and geography (APAC, North America, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing demand for premium whiskey is notably driving the whiskey market growth, although factors such as the increasing competition from other alcoholic beverages may impede the market growth. Our researchers analyzed the data with 2022 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.
Key Whiskey Market Driver
The increasing demand for premium whiskey is notably driving the whiskey market growth. A significant rise in the per capita income of people globally is increasing the demand for premium varieties of whiskey among consumers. The rising demand for premium whiskey and craft whiskey is expected to drive the growth of the global whiskey market.
Owing to the increasing demand, vendors offer premium varieties of whiskey. For instance, in December 2021, Dunville launched an 18-year-old single-malt aged in an oloroso sherry cask, which contains 60.63% alcohol by volume (ABV). Similarly, Micil Distillery launched two new Irish whiskeys, including Micil Inverin Small Blended Irish Whiskey with 46% ABV at a price of $45 and Micil Earls Island Single Pot Still Irish Whiskey with 46% ABV at a price of $55. Premium varieties of whiskeys are widely preferred because of their authenticity, taste, and brand. Thus, the increasing demand for premium whiskeys is expected to drive the growth of the global whiskey market during the forecast period.
Key Whiskey Market Trend
The increasing demand for craft whiskey will be a key trend in the whiskey market. The demand for craft whiskey is increasing as consumers demand more premium products. Consumers perceive that premium products are produced with better quality ingredients and offer better taste than conventional spirits. Increasing new product development in the craft whiskey segment will help the segment's growth during the forecast period.
Players in the market are launching new products to meet the rising consumer demand. For instance, the Ironroot Republic, which won the title of Best Craft Whiskey Distillery in 2019, launched two straight bourbons and a limited release of straight corn whiskey. The demand for craft whiskey is expected to remain high during the forecast period due to the increasing demand from emerging economies such as India and South Africa. The increasing demand for craft whiskey is leading to the opening of new distilleries in various countries such as India and Australia. The growing demand for craft whiskey will positively influence the growth of the market during the forecast period.
Key Whiskey Market Challenge
The increasing competition from other alcoholic beverages will impede the whiskey market growth. Other alcoholic beverages, such as vodka, rum, brandy, and others, will challenge the growth of the global whiskey market during the forecast period. The increasing demand for other spirits such as mezcal, vodka, rum, and tequila in the US and other North and South American countries is affecting the sales of whiskey negatively. Similarly, European countries such as Germany, France, Italy, Russia, Belgium, and Sweden are witnessing an increasing demand for spirits such as vodka, rum, and tequila, which has negatively impacted the revenues and volumes in the market in these countries.
India is the largest market for whiskey globally, and the increasing demand for other alcoholic drinks is affecting the sales of whiskey products in India. Therefore, it has become important for whiskey manufacturers to focus on innovative marketing strategies, better product development, and newer strategies to build a customer base to sustain and grow in the highly competitive global whiskey market. Thus, increasing competition from other alcoholic beverages can become a major challenge for the growth of the global whiskey market during the forecast period.
Key Whiskey Market Customer Landscape
The 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 growth strategies.
Global Whiskey Market Customer Landscape
Vendors 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 - 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 report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors 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 vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Based on distribution channels, the market is segmented into off-trade and on-trade. The market share growth by the off-trade segment will be significant during the forecast period. The off-trade segment includes all retail outlets such as hypermarkets, supermarkets, convenience stores, online stores, mini markets, kiosks, and wine and spirits shops. In 2022, the off-trade or off-premises distribution channel segment accounted for the majority of the market share in terms of revenue, with convenience stores contributing the most. Consumers prefer to buy drinks from various liquor stores, as they are sold at a lower price than in most on-trade distribution channels.
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The off-trade segment showed a gradual increase in market share from 45,724.56 million in 2017 and continued to grow by 2021. Convenience stores are small retail business stores that stock a various range of items such as coffee, groceries, snack foods, confectionery, soft drinks, tobacco products, over-the-counter drugs, toiletries, newspapers, and alcoholic beverages, including whiskey. Stores such as mom-and-pop outlets have started stocking whiskey as per the demand of local customers. This provides convenience to consumers who have a wide range of options to choose from.
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APAC is projected to account for 50% of the global market share growth by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
India accounted for the largest market share of the global whiskey market, and it is expected to maintain its dominant position during the forecast period. The increasing disposable income of people, the growing popularity of western culture, and the introduction of new flavors of whiskey are driving the growth of the whiskey market in APAC. The consumption of alcoholic beverages is growing significantly in low- and middle-income countries, while the total volume of alcoholic beverage consumption is stable in high-income countries.
However, the lockdowns were lifted in the second half of 2020 owing to large-scale vaccination programs across APAC. This led to the resumption of production activities in manufacturing units, including that for whiskey, in the first half of 2021. Moreover, the pandemic has increased the preference for buying whiskey online, as customers were unable to visit brick-and-mortar stores during lockdowns. These factors will likely boost the whiskey market's growth in APAC during the forecast period.
Technavio categorizes the whiskey market as a part of the global distillers and vintners market within the overall food and beverage sector. The distillers and vintners market covers distillers, vintners, and producers of alcoholic beverages such as wine, spirits, and liqueur. The market is also segmented by manufacturing processes such as fermentation and distillation. The market does not include manufacturers of storage and dispensing equipment. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by type, product, distribution channel, and region.
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Whiskey Market Scope |
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Report Coverage |
Details |
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Page number |
167 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 6.02% |
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Market growth 2023-2027 |
$ 34,078.61 million |
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Market structure |
Fragmented |
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YoY growth (%) |
5.58 |
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Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
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Performing market contribution |
APAC at 50% |
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Key countries |
US, Canada, India, China, and France |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
Allied Blenders and Distillers Pvt. Ltd., Asahi Group Holdings Ltd., Bacardi Ltd., Beam Suntory Inc., Brown Forman Corp., Constellation Brands Inc., Davide Campari Milano NV, 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. |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this report to meet your requirements. Get in touch
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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