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The whiskey market is estimated to grow by USD 34.07 billion at a CAGR of 6.02% between 2022 and 2027. The increasing demand for premium whiskey reflects changing consumer preferences and a growing appreciation for high-quality spirits. The emergence of online distribution platforms has expanded the reach of premium whiskey brands, making them more accessible to consumers around the world. Additionally, the rising demand for premium single-malt whiskey underscores the trend towards higher-quality, artisanal products in the spirits market. These factors are contributing to the overall growth and evolution of the market. Furthermore, the rise of cocktail culture and the growing popularity of whiskey-based cocktails have also contributed to the increased demand for premium whiskey. The convenience of online shopping has made it easier for consumers to explore and purchase premium whiskey brands, driving growth in the online distribution platform.
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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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).
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 45.72 billion in 2017. 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 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 are driving the growth of the 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 market's growth in APAC during the forecast period.
The market is experiencing a surge in popularity, especially among Millennials, who are driving trends in spirits consumption. This trend is not limited to whiskey; it extends to other alcoholic beverages like beer and wine as well. The rise of cocktail culture has further boosted the demand for whiskey, with consumers seeking high-quality, original, and authentic products. The market is also influenced by factors such as spirit tourism and the digital landscape, with the market seeing growth in both established and emerging markets. 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.
The increasing demand for premium whiskey is notably driving the market growth. A significant rise in the per capita income of people globally is increasing the demand for premium varieties among consumers. The rising demand for premium whiskey and craft whiskey is expected to drive the growth of the global market. This trend is influenced by millennials' consumption patterns, purchasing power, and their emphasis on quality, originality, and provenance. Additionally, the availability of intelligence on products, pricing, customers, and suppliers, along with the changing consumer lifestyle and high standard of living, contributes to the growth. The market also sees growth in sales through alcohol shops, particularly in emerging markets, with a focus on Scotch whiskey.
Owing to the increasing demand, companies 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 USD45 and Micil Earls Island Single Pot Still Irish Whiskey with 46% ABV at a price of USD55. 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 market during the forecast period.
The increasing demand for craft whiskey will be a key trend in the 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 will positively influence the growth of the market during the forecast period.
The increasing competition from other alcoholic beverages will impede the market growth. Other alcoholic beverages, such as vodka, rum, brandy, and others, will challenge the growth of the 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 sales 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 whiskey market 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 market. Thus, increasing competition from other alcoholic beverages can become a major challenge for the growth of the market during the forecast period.
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 Market 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 - 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 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 research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2023 to 2027, as well as historical data from 2017 to 2022 for the following segments.
The market in Western countries is experiencing a resurgence, driven by trends like on-trade recovery and the experience economy. Digital innovations, such as virtual tastings and digital festivals, are reshaping how consumers engage with whiskey. Brands are exploring lower alcohol varieties and organic options to cater to health-conscious drinkers. Premiumization trends are evident, with a focus on innovative brands and distinctive flavor profiles. Whiskey tourism and mixology are also on the rise, offering immersive experiences for enthusiasts. As younger drinkers enter the market, the industry is adapting to shifting preferences, emphasizing the cultural value and craftsmanship behind each bottle. With the help of online marketing and e-commerce, Organic Whiskey is reaching a global audience, including emerging nations, where Western drinking traditions are gaining popularity.
Moreover, the market thrives at the digital frontier, engaging with hotels, restaurants, and alcohol outlets. Entertainment and events spotlight happy hour beverages and whiskey imports. Despite limitations like the drinking-age population, spirits research fuels the whiskey industry, amplifying intelligence on suppliers. Bainbridge Organic Distillers innovate with grains, catering to heavy alcohol drinkers. Full-service restaurants and cafés/bars embrace whiskey's cultural background, enhancing whiskey tourism. Rising consumer requirements demand flavored spirits, celebrating distinctive flavor profiles and artistry. Premium spirits dominate the luxury market, with whiskey tastings and educational seminars captivating bartenders and consumers alike. Internet shopping offers product information and doorstep delivery for various whiskey types in bottles and cans.
Market Scope |
|
Report Coverage |
Details |
Page number |
167 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 6.02% |
Market growth 2023-2027 |
USD 34.07 billion |
Market structure |
Fragmented |
YoY growth (%) |
5.58 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 50% |
Key countries |
US, Canada, India, China, and France |
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., 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. |
Market dynamics |
Parent market analysis, Market Forecasting, 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 |
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 Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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