The Global Whiskey Market is estimated to be valued at USD 80.5 billion in 2021 and is expected to exhibit a CAGR of 7.3% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
A) Market Overview:
Whiskey is a distilled alcoholic beverage made from fermented grain mash. It is aged in wooden casks, which imparts a distinct flavor and character to the spirit. Whiskey is highly popular among consumers worldwide for its rich taste and aroma. The demand for premium whiskey has been increasing due to the growing disposable income of consumers and their willingness to spend on high-quality products.
Whiskey offers several advantages, including a wide range of flavor profiles, versatility in consumption, and the ability to be enjoyed neat, on the rocks, or mixed in cocktails. The aging process gives whiskey a unique depth and complexity, appealing to connoisseurs and enthusiasts alike. The need for products associated with the Whiskey Market includes distilleries, aging facilities, packaging materials, and marketing services.
B) Market Key Trends:
One key trend observed in the Global Whiskey Market is the rising demand for premium and craft whiskey. Consumers are becoming more discerning in their choices and are willing to pay a premium for high-quality, unique, and limited-edition whiskey. Craft distilleries are gaining popularity as they offer handcrafted, small-batch whiskies with distinct flavors and artisanal production methods. For example, the growing trend of whiskey tastings and whiskey clubs showcases consumers’ interest in exploring different brands and varieties of whiskey.
C) Porter’s Analysis:
- Threat of new entrants: The Whiskey Market has high barriers to entry, including the need for substantial capital investment, stringent regulations, and the time-consuming process of whiskey production and aging. These factors make it difficult for new entrants to establish themselves in the market.
- Bargaining power of buyers: Buyers in the Whiskey Market have moderate bargaining power due to the wide availability of whiskey brands and varieties. However, premium and limited-edition whiskies may have higher demand and limited supply, giving the producers more negotiation power.
- Bargaining power of suppliers: Suppliers of grains, barrels, and other raw materials have moderate bargaining power. Whiskey producers require high-quality ingredients for their production process but can switch suppliers if needed.
- Threat of new substitutes: Whiskey faces a moderate threat from substitutes such as other alcoholic beverages like wine, beer, and other spirits. However, whiskey’s unique flavor profile and loyal consumer base mitigate this threat.
- Competitive rivalry: The Whiskey Market is highly competitive, with key players constantly innovating to capture consumer attention. The market is dominated by renowned companies such as Diageo plc, Pernod Ricard, William Grant and Sons Ltd., Crown Royal, Beam Suntory, Inc., Allied Blenders & Distillers (ABD) Pvt. Ltd., Brown–Forman Corporation, and Suntory Beverage & Food Limited.
D) Key Takeaways:
- The global Whiskey Market is expected to witness high growth, exhibiting a CAGR of 7.3% over the forecast period, due to increasing demand for premium and craft whiskey.
- In terms of regional analysis, North America is expected to be the fastest-growing and dominating region in the Whiskey Market. The region has a strong whiskey culture, and consumers are willing to spend on premium and luxury spirits.
- Key players operating in the global Whiskey Market include Diageo plc, Pernod Ricard, William Grant and Sons Ltd., Crown Royal, Beam Suntory, Inc., Allied Blenders & Distillers (ABD) Pvt. Ltd., Brown–Forman Corporation, and Suntory Beverage & Food Limited. These companies have a strong market presence and offer a wide range of whiskey brands to cater to different consumer preferences.
In conclusion, the global Whiskey Market is poised for significant growth, driven by the rising demand for premium and craft whiskey. The market offers opportunities for both established players and new entrants to capitalize on evolving consumer preferences and capture a larger market share.