Whiskey Market size is set to grow by USD 37.53 billion from 2024-2028, Increasing demand for premium whiskey boost the market, Technavio

NEW YORK, June 4, 2024 /PRNewswire/ -- The global whiskey market size is estimated to grow by USD 37.53 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 6.25% during the forecast period.

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Market Driver

The global whiskey market is experiencing significant growth, with Irish whiskey and American bourbon leading the charge. Irish whiskey, though holding a small market share in 2020, is witnessing a rapid increase in demand. Factors contributing to this growth include its sweet and smooth taste, competitive pricing, and investments by major brands.

Additionally, the demand among new and female consumers is on the rise. American bourbon's increasing popularity has resulted in increased production capacities and the establishment of new distilleries, particularly in Kentucky, US. 

The whiskey market is currently experiencing significant trends. Craftsmanship and uniqueness are key factors driving growth. Premium spirits, such as those produced in Craft distilleries, are increasingly popular. Whiskey from various regions, including Scotland, Ireland, and America, are in high demand.

Tasting events and educational seminars are trending, allowing consumers to learn about different types and appreciate the artistry behind each bottle. Consumers are also seeking out limited edition and aged whiskeys, adding to the market's excitement. Cultivating a connection with consumers through storytelling and authenticity is essential for brands to stand out in this competitive industry. 

Market Challenges

• The global whiskey market faces significant competition from various alcoholic beverages like vodka, rum, brandy, mezcal, and tequila. In the US and other American countries, the rising demand for these spirits negatively impacts whiskey sales. European markets, including Germany, France, Italy, Russia, Belgium, and Sweden, also exhibit increasing demand for spirits, affecting whiskey revenues and volumes.
• In APAC, China's preference for Baijiu and growing popularity of other alcoholic beverages in countries like Singapore, the UK, and Germany pose challenges. Innovative marketing, product development, and customer base building are essential for whiskey manufacturers to thrive in this competitive market.
• The whiskey market faces several challenges in the current business environment. Dinkins and Consumption highlight the importance of understanding consumer preferences and behaviors. Marketers need to identify the key demographics and target them effectively. Drinkers seek authenticity and unique experiences, driving the demand for high-quality, artisanal whiskeys. Regarding production, changing regulations and increasing competition put pressure on manufacturers.
• The cost of raw materials, such as barley and water, also impacts profitability. Moreover, the aging process is crucial, and factors like climate and storage conditions can significantly influence the final product's taste and quality. Another challenge is the growing trend towards sustainability and eco-friendliness. Consumers are increasingly concerned about the environmental impact of production methods and packaging. Companies must adapt to these changing preferences and invest in more sustainable practices to remain competitive.
• Innovation is another key factor. Brands must differentiate themselves by offering unique flavors, aging techniques, or packaging. They can also explore new markets and distribution channels to expand their reach. In summary, the whiskey market faces challenges related to consumer preferences, production costs, regulations, sustainability, and competition. Companies must adapt to these trends and invest in innovation to remain competitive.

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Segment Overview 

1. Distribution Channel
• 1.1 Off trade
• 1.2 On trade
2. Product 
• 2.1 Scotch whiskey
• 2.2 American whiskey
• 2.3 Canadian whiskey
• 2.4 Irish whiskey
• 2.5 Others
3. Geography 
• 3.1 APAC
• 3.2 North America
• 3.3 Europe
• 3.4 South America
• 3.5 Middle East and Africa

1.1 Off trade- Whiskey market experiences steady growth, driven by increasing consumer preference for premium spirits. Key players expand their production capacity to meet demand. Distribution channels broaden, reaching more consumers worldwide. Whiskey's rich taste and tradition continue to attract new customers, ensuring market sustainability.

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Research Analysis

The whiskey market, a significant segment of the global alcoholic beverages industry, has experienced notable growth in recent years. Millennials, with their unique consumption patterns and purchasing power, have contributed significantly to this trend. In Western countries, spirits such as whiskey, beer, and wine have seen a resurgence in popularity, particularly in the on-trade sector.

The digital frontier has also played a role, with consumers researching ingredients, provenance, and originality before making purchases. The global whiskey market, including Scotch whiskey and emerging markets, has seen robust imports, driven by the desire for quality and authenticity. Spirit tourism has further fueled demand, offering consumers a firsthand experience of the production process.

However, limitations such as regulations and taxes continue to impact sales in various alcohol shops. The changing consumer lifestyle and the emergence of new markets continue to shape the future of the whiskey market.

Market Research Overview

The Whiskey Market encompasses a wide range of spirits produced from fermented grain mash, specifically barley, corn, rye, and wheat. The production process involves distillation and aging in oak barrels, imparting unique flavors and aromas. The market witnesses continuous growth due to increasing consumer preference for premium and super-premium whiskeys.

Consumers appreciate the complex taste profiles and rich history behind these spirits. Various types of whiskey include Scotch, Irish, Bourbon, and Tennessee. Innovative marketing strategies, such as limited editions and collaborations, further fuel market growth. The industry caters to both domestic and international markets, with significant demand in regions like Europe and North America. Consumers' shifting preferences towards organic and non-GMO whiskeys also impact market trends.

Table of Contents:

1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation

• Distribution Channel
• Off Trade
• On Trade
• Product
• Scotch Whiskey
• American Whiskey
• Canadian Whiskey
• Irish Whiskey
• Others
• Geography
• APAC
• North America
• Europe
• South America
• Middle East And Africa

7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix

About Technavio

Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.

With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

Contacts
Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/

SOURCE Technavio

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