Whiskey has been synonymous with luxury for a long time due to its long distillation and aging process. However, the emergence of various craft whiskeys that challenge the notion that aged whiskey is better is driving a renewed growth and demand among consumers. With the wide variety of whiskey available and the ongoing innovations in distilling the product, curious consumers have propelled demand and consequently market growth.
Many whiskey manufacturers are attaching tasting bars and restaurants to their distilleries, to sell the whiskey experience while learning more about the process and the product itself thus further facilitating demand. Additionally, the high social and cultural status associated premium whiskeys is driving growth for the same globally. At the same time, innovative whiskeys that are creatively branded and packaged are encouraging consumers of various alcohol preference to adopt whiskey. For example the availability of whiskeys made from organic products with no additives, vacuum-aged whiskey and whiskeys made from various grains such as quinoa, buckwheat, sorghum, and oats.
Heavy duties and taxation on alcohol, negative health benefits of long-term irresponsible consumption of whiskey and the legal regulations set in place by governments pose as market restraints. However, due to the aforementioned innovations and availability of a wide variety of the product at various price points is likely to mitigate the challenges this market may experience during the forecast period.
Major Key Players:
Key players profiled in the MRFR's whiskey market report include Radico Khaitan, Allied Blenders and Distillers Pvt. Ltd., Beam Suntory, Brown-Forman, Pernod Ricard, Diageo, Bacardi, Heaven Hill Distilleries, Constellation Brands Inc., and Distell Group Limited.
Latest Industry News:
Famous singer and Nobel laureate, Bob Dylan has decided to venture into the whiskey market and has turned an old unused church in Tennessee into a distillery for a Tennessee straight bourbon, a double barrel whiskey, and straight rye. Named Heaven's Door Spirits has been set up with a USD 35 million raised from investors. The distillery is due to open in May of 2018.
Johnnie Walker, owned by Diageo, is releasing a new whiskey called "White Walker". The whiskey is an official Game of Thrones product that is expected to be on shelves by fall of 2018. This collaboration is one of many that the show & book franchise has inspired.
Jack Daniels has sued Dynasty Spirits and Gulf Coast Distillers for damaging the Jack Daniels brand. The companies above have allegedly been selling whiskey in bottles which closely mimic the Jack Daniels design. Brown-Forman, the company behind Jack Daniels, claims that the similarity is deliberate in an attempt to confuse consumers.
Segmentation:
The global whiskey market has been segmented by source, type, origin, process, and region.
By source, the market has been segmented into malt, grain, blended, and others.
By type, the market has been segmented into bourbon/rye, scotch, cask finish and others.
By origin, the market has been segmented into U.S., Canadian, Irish, Japanese and others.
By process, the market has been segmented into pot still distillation, column still distillation and others.
By region, the market has been segmented into North America, Europe, Asia-Pacific (APAC), and Rest of the World (RoW).
Regional Analysis:
Europe leads the global whiskey market due to a strong presence of prominent players in the region. Additionally, the area includes countries such as Scotland and Ireland, which are known for their production and consumption of whiskey. For example, the famous Scotch whiskey is only truly considered scotch if it has been distilled and aged in Scotland. These countries climate have the optimal conditions for whiskey manufacturing which allows for minimum loss during the aging process as compared to other countries.
North America also has a significant share of the market due to the high popularity of American whiskey. Many innovations in whiskey production have occurred in this region, particularly the U.S. and Canada. This is expected to boost market growth during the forecast period.
The Asia-Pacific is projected to see rapid growth during the forecast period due to countries such as India and China driving strong demand for luxury products as a result of rising disposable incomes. Japan is another key country that contributes growth in this region due to a presence of whiskey manufacturer. The rising popularity and increased demand for whiskey in this country are primarily due to the availability of a large population in the region and high adoption of western lifestyle & cultural trends. India has a strong presence of whiskey manufacturers and is home to the highly acclaimed, first Indian single malt whiskey.
