by The Scottish Whisky Market is estimated to be valued at US$ 7.69 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:-
Scottish whisky is a distilled alcoholic beverage produced in Scotland from fermented malted barley. Scottish whisky varies in color, flavor and aroma based on specifics factors like wood of the cask, maturation period and blending. Scottish whisky serves as a base for many cocktails and also consumed neat or on the rocks. It helps to reduce stress, anxiety and improves heart health due to presence of antioxidants.
Market key trends:-
Premiumization has emerged as a key trend in the global Scottish whisky market. This is backed by increased consumer spending on premium and luxury products globally. Consumers today are willing to spend more on high quality products and unique flavors and aromas. Companies in the Scottish whisky market are focusing on launching premium and super premium whiskies aged for longer durations in rare oak casks to capitalize on the premiumization trend. For instance, Glenmorangie launched its high-end private edition, Grand Vintage Malt 1996 which is matured for 25 years at a price point of around $1,500 per bottle. This is expected to drive the market growth of Scottish whisky during the forecast period.
Porter’s Analysis:-
- Threat of new entrants: The threat of new entrants is moderate as the Scottish whisky industry requires substantial infrastructure and time to produce quality products. However, distilleries can disrupt the market with innovative products.
- Bargaining power of buyers: Large retail chains have significant bargaining power as buyers due to their sizeable demand. They can negotiate on price and demand better trade terms.
- Bargaining power of suppliers: A few organizations control the production of key raw materials like barley and wood chips. This gives them bargaining power over distilleries.
- Threat of new substitutes: Other brown spirits and beer pose threats. However, the niche taste and cultural tradition behind Scottish whisky provide some insulation.
- Competitive rivalry: Intense as major producers compete on brand value, quality, and price. Innovation and geographical indications help create point of differences.
SWOT Analysis:-
- Strengths: Strong brand recognition, robust distribution network, large production capacities.
- Weaknesses: Price fluctuations in agricultural inputs, vulnerability to economic cycles.
- Opportunities: Growth in emerging markets, premiumization trend, innovative product launches.
- Threats: Stringent regulations, health consciousness, technical issues during production.
Key Takeaways:-
The Global Scottish Whisky Market Growth is expected to witness high, exhibiting CAGR of 5.3% over the forecast period, due to increasing demand for premium and craft beverages. The market size for 2023 is US$ 7.69 Bn.
Regionally, North America is projected to dominate the market through the forecast period. Countries like the US and Canada have witnessed rising demand for single malt Scotch whisky among older consumers and millennials.
Key players operating in the Scottish whisky market are William Grant & Sons, Pernod Ricard, Diageo Plc, Bacardi Limited, Suntory Holdings, Aceo Ltd. These major players compete on brand value, quality, and price. Innovation and geographical indications help create competitive advantages.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
