July 25, 2024
Irish Whiskey Market

Irish Whiskey Market Estimated To Witness High Growth Due To Rising Tourist Arrivals & Increasing Popularity Among Millennials

The Irish whiskey market is estimated to be valued at US$ 4.7 Billion in 2022 and is expected to exhibit a CAGR of 7.44% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Irish whiskey is classified as a type of whiskey, bottled and labelled in Ireland. It is distilled from cereal grains that have been malted, such as barley. The four main categories of Irish whiskey include single malt, single grain, blended whiskey and pot still whiskey. Irish whiskey is popular across the world for its smooth and mellow taste. It is often consumed on the rocks or used in cocktails.

Market Dynamics:

The growth of the Irish whiskey market is primarily driven by rising tourist arrivals in Ireland and increasing popularity among millennials. According to Tourism Ireland, over 10.6 million people visited Ireland in 2019, representing a 6% increase from 2018. Tourist often explore Irish pubs and bars and get introduced to Irish whiskey. Meanwhile, millennials have developed a preference for premium and craft spirits over beer and wine. They are more willing to experiment and try new flavors of whiskey including Irish varieties. Additionally, Irish whiskey producers are focusing on expanding their distribution networks in emerging markets such as Asia Pacific, Middle East and Africa. For instance, in 2021, Irish Distillers opened its first distillery in China to cater to the growing demand. This is expected to further support market growth over the forecast period.

Segment Analysis

The Irish whiskey market is dominated by the blended Irish whiskey segment. This segment holds around 75% of the overall market share owing to the high demand for premium blended whiskeys at affordable prices from consumers across different age groups and income levels. The blended Irish whiskeys offer a smoother taste and easier drinking experience for the new consumers leading to their higher popularity compared to other segments like single malt and single pot still Irish whiskeys meant for connoisseurs.

PEST Analysis

Political: The Irish whiskey industry is backed by strong government support through initiatives to promote Irish culture and spirits globally. Various trade agreements have boosted exports.
Economic:Developing economies with growing middle-class and rising disposable incomes present major opportunities. High brand investment and premiumization trend contribute to market growth.
Social:Changing consumer preference for premium and craft spirits leads to experimentation. Social media marketing influences purchase decisions.
Technological: Digitalization helps improve distribution and supply chain. E-commerce has boosted availability in new markets. Innovation in flavors, finishes and sustainable packaging aid consumer acquisition.

Key Takeaways

The global Irish Whiskey Market Share is expected to witness high growth, exhibiting a CAGR of 7.44% over the forecast period, due to increasing experimentation among new-age consumers and rising social media influence. The Asia Pacific region is witnessing the fastest growth in the Irish whiskey market owing to growing westernization and exposure to premium drinks in developing economies like India and China.

Key players operating in the Irish whiskey market are Beam Suntory, Brown-Forman, Diageo, Pernod Ricard, William Grant & Sons, and Castle Brands. Beam Suntory leads the market with top-selling brands like Jameson and Bushmills. Diageo has a strong portfolio of premium brands like Redbreast and Green Spot assisting their global expansion plans.

Regional analysis reveals that Ireland dominates the global production with brands leveraging the ‘Made in Ireland’ appeal. However, the US market accounts for over 35% of global volumes led by the trend of cocktail culture and heritage marketing. Emerging markets in Asia Pacific are projected to surpass North America driven by rising affluence, urbanization and luxury consumption.

About Author - Ravina Pandya

Ravina Pandya,a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals.  LinkedIn Profile

About Author - Ravina Pandya

Ravina Pandya, a content writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemicals and materials, etc. With an MBA in E-commerce, she has expertise in SEO-optimized content that resonates with industry professionals.  LinkedIn Profile

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