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Increased marketing and promotion by vendors, changing demographics and rising disposable incomes worldwide have created the perfect conditions for whiskey sales. The global whiskey market is expected to grow at a CAGR of 4.48% from 2014-2019, and Technavio analysts have narrowed down the areas that will be key for both whiskey production and consumption over the projected period.
Source: Technavio Research
Scotch Whisky Market
Scotch whisky is by far the market leader, with a consumption volume of 912.4 million liters in 2014. This is expected to reach 1,053.29 million liters by 2019, posting a CAGR of 2.91%.
Scotch whisky is the second largest category in the global whiskey market, thanks to high demand from emerging affluent middle-class customers globally.
American Whiskey Market
305.82 million liters of American whiskey was consumed worldwide in 2014, and this is expected to reach 346.68 million liters by 2019.
American whiskey has a large market share in the US and is driven by a growing interest for unique brands. There is consumer demand for authentic, high-value products, such as rye whiskeys and small batch bourbons. An increase in the demand for new flavors such as cherry-infused whiskey is also fueling the US whiskey market. The industry is introducing new flavors in order to target young consumers that are enthusiastic to try new products.
Canadian Whisky Market
While Canadian whiskey is still a big market player, demand for the product is expected to decrease over the next four years, as demand for other whiskies increases. In 2014, 182.76 million liters of Canadian whisky was consumed, but this number is expected to dip to 174.64 million liters in 2019.
Irish Whiskey Market
Irish whiskey was the smallest segment in the global whiskey market, accounting for a market share of only 1.98% in 2013. However, Irish whiskey is expected to grow at a CAGR of 8.79% through 2019, which presents huge growth potential. This boost to the Irish whiskey segment is expected to fuel overall growth in the global market throughout the forecast period.
Leading Countries for Whiskey Consumption
In most food and beverage markets, the countries making the product are rarely the largest consumers, and this holds true for whiskey.
Source: Technavio Research
The APAC region is by far the biggest global consumer of whiskey, with India leading the charge at a 46.69% share of global consumption. The whiskey market in the APAC region witnessed a consumption volume of 1,848 million liters in 2014 and is expected to reach 2,363.45 million liters by 2019, posting a CAGR of 5.04%.
India
The large market share and overall growth of the whiskey market in India is driven by the rise in disposable income, rapid urbanization and growing young population in the country. However, high taxation such as excise duties, sales tax, VAT, and various intermediary margins increase the retail price of whiskey. Additionally, restrictions on advertisements and distribution methods also act as a challenge for the whiskey market in India.
US
The growing millennial and Hispanic population, premiumization, and the introduction of new flavors is fueling the growth of the whiskey market in the US. However, the market is also encountering threats from anti-alcohol campaigns and rising demand for substitute alcoholic beverages such as beer, wine, and other spirits.
France
Demand for flavored drinks is driving whiskey sales in France. However, a rise in the health-consciousness is expected to be a big challenge for overall market growth.
Japan
In Japan, demand for low-priced domestic whiskies has fueled the growth of the market. However, just like the American market, the increasing demand for other drinks such as wine and beer is acting as threat to whiskey.
UK
Imported whiskeys are gaining steam in the UK, and this coupled with rising demand from young drinkers, and heavy brand investment from brands like Jack Daniel’s are driving the market.
