Whiskey Market Size, Share, Growth & Industry Trends [2031]

Report Description

Whiskey Market Outlook 2031

The global whiskey market size was USD 82.08 Bn in 2022 and is likely to reach USD 130.45 Bn by 2031, expanding at a CAGR of 5.18% during 2023–2031. The market growth is attributed to the growing consumption of whiskey and the rising demand for premium whiskey in developing nations.

Global alcohol consumption has increased in recent times. The global volume of alcoholic drinks is expected to be around 282, 117 million liters by 2023. Nowadays, consumers are more inclined toward consuming exclusive types of alcoholic drinks, including whiskey. A number of pubs, restaurants, bars, and breweries serve different types of whiskeys.

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The number of consumers preferring premium alcohol is increasing at a rapid pace with the growing alcohol consumption. This ongoing consumer shift from beer and wine to premium whiskey and spirits is driving the global whiskey market. The rising consumer spending on premium alcohol brands, especially in emerging economies, is contributing to the growth of the market.

The ongoing industrialization in emerging economies, such as India and China, creates immense opportunities in the market with the rapid surge in the number of restaurants and bars. The increase in spirit tourism, especially in Western countries, encourages tourists from overseas to taste and develop local whiskeys. Countries such as the US, France, the UK, and Scotland are increasingly focusing on developing spirit tourism to gain new customers for regional market growth.

The COVID-19 pandemic hampered the global whiskey market, as alcohol consumption decreased rapidly during the pandemic. Governments across the globe imposed strict lockdowns to curb the spread of the virus, which led to the shutdown of hotels, bars, and liquor stores, thus decreasing the demand for whiskey.

Moreover, strict regulations on the import and export of raw materials required for the production of whiskey hindered the market. As per the report published by Pernod Ricard, one of the key players in the whiskey industry, the company witnessed a decline in profit margins by about 20%, due to the closure of various hotels, restaurants, and alcohol shops across the globe.

Whiskey Market Dynamics

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Major Drivers

Growing consumer preference for premium alcohol and brand ownership drives the market. The preference for premium alcohol is growing rapidly. Consumers are shifting towards branded whisky, as it offers better taste and various flavors than other alcohols. Moreover, the growing demand for organic whiskey is expected to fuel the market.

Existing Restraints

The wide presence of alternatives to alcohol hampers the global whiskey market. The number of consumers who prefer vodka and wine is rapidly increasing, which directly affects the market. Moreover, the high cost of premium whiskey significantly hinders the market, as low-income consumers are not able to afford premium whiskies.

Emerging Opportunities

Rising demand for cocktail across the globe is creating lucrative opportunities in the market. Whiskey is one of the most popular alcohol that used as a cocktail mixer to make ready-to-drink cocktails drinks, owing to its rich and raw taste. Cocktail drinks are becoming popular among millennials. Furthermore, the rising consumer inclination toward experimenting beverages with different types of alcohol is expected to boost the demand for whiskey and create new opportunities in the market during the forecast period.

Scope of The Whiskey Market Report

The market report includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Whiskey Market Segment Insights

Product Type Segment Analysis

Based on product type, the whiskey market is divided into American whiskey, Irish whiskey, scotch whiskey, Canadian whiskey, and Japanese whiskey. The scotch whiskey segment is expected to expand at a considerable CAGR in the coming years, owing to the increasing consumer demand for premium scotch whiskey.

The smoothness and rich taste of scotch whiskey is one of the major reasons contributing to boost its demand. Scotch whiskey is distilled and matured in oak casks for at least three years and is required to be bottled at an alcoholic strength of a minimum of 40% and above.  

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Distribution Channel Segment Analysis

On the basis of distribution channel, the global market is segregated into on-trade and off-trade. The off-trade segment dominated the market in 2022, due to the increasing consumer preference to purchase alcohol from offline stores. Off-trade includes places where consumers easily get various types of beverages, such as liquor stores and supermarkets. Moreover, the convenience of buying from supermarkets allows consumers to compare prices and various types of whiskey.

The on-trade segment is anticipated to register a considerable CAGR during the forecast period, as the various renowned whiskey companies in the market are entering into the e-commerce industry to gain majority of the customers, especially young customers. These customers prefer purchasing alcohol online from various e-commerce sites, thereby boosting the segment.

Regional Outlook

In terms of region, the global whiskey market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to dominate the market during the projection period, owing to the growing consumption of whiskey in countries, such as the US and Canada. In 2022, the total whiskey category registered 3% growth in revenue and surpassed vodka, which registered less than 1% growth as compared to 2021.

Consumers in the region are shifting to premium alcohol, owing to the potential health benefits. According to the report published by WebMD in 2022, whiskey has high levels of plant-based antioxidants, polyphenols, which are linked with lowering the risk of heart diseases. Furthermore, the rising disposable income in the region is another key factor driving the market, as it allows customers to increase spending in buying alcohol. The demand for premium whiskey is increasing in the region, which is expected to fuel the market in the coming years.

The market in Asia Pacific is projected to register a considerable CAGR in the coming years, due to the growing consumption of Indian-made foreign liquor (IMFL) in the region. India has a promising future for the whiskey market, as India consumes 48% of all whiskey products in the world.

Whiskey consumption is growing rapidly in the region, due to the rising consumer inclination toward consuming premium liquor. The rising disposable income encouraged consumers to increase spending on premium quality alcohol products. Moreover, whiskey producers in the region are launching various flavors that blend well with Indian spices. At the Whiskies of World Awards 2023, Indian whiskey brand, Indri has been rewarded “Double Gold Best in Show” as the best whiskey in the world.

As per the Scotch Whiskey Association, an average Indian consumes more than a liter of whiskey in a year. The perfect taste of whiskey blended with Asian food is one of the key factors propels the market in the region. The demand for whiskey is growing, especially in India, owing to its not-so-sweet sweetness and just the perfect amount of bitterness blends, which blends well with all festive foods and all seasons.

6 out of the top 10 whiskies sold in the world are from India. The demand for premium whiskey is expected to grow in the coming years, owing to the increasing consumption of different types of whiskies.

• As per the document by the Scotch Whiskey Association released in Feb 2023, India is one of the major importers of scotch whiskey in the world with 219 million bottles.

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