by The Scottish Whisky Market is estimated to be valued at US$ 5.2 Bn in 2022 and is expected to exhibit a CAGR of 5.3% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The Scottish whisky market caters to a large consumer base worldwide. Key products in the market include single malt, blended malt, blended grain and other whisky varieties which are consumed for their flavors and as a staple drink in several social gatherings and occasions.
Market Dynamics:
The growth of the Scottish whisky market is driven by two key factors. Firstly, rising global spending on premium and super premium spirits has increased the demand for high-quality single malt Scotch whiskies. Economies like China and India with growing middle-class populations are shifting to premium drinks. Secondly, innovative marketing strategies by leading distilleries focused on younger consumer segments through unique flavors and varied bottle designs have boosted the market. Various cultural activities, festivals and events promoting Scotch whisky as part of national heritage in Scotland are also augmenting the market growth.
Market key trends:
The Scottish whisky market has been witnessing rising popularity of craft and specialty whiskies among consumers across the world. Numerous craft distilleries have come up in Scotland in recent years offering unique flavors and tastes. This trend has been fuelled by rising experimentation among millennial and gen Z consumers who are keen to explore different varieties of whisky. Moreover, the growing high-net-worth individuals demographic has also boosted the craft whisky market. Scottish craft distillers are leveraging various wood casking techniques and unique aging processes to come up with innovative products.
SWOT Analysis
Strength: Scotland has a long legacy of whisky making with more than 130 operating distilleries. The country enjoys a worldwide reputation for producing high quality single malt and blended whiskies.
Weakness: Stiff competition from other categories like beer and wine limits the growth potential for Scottish whisky. Moreover, rising raw material costs pose challenges.
Opportunity: Growing popularity of whisky experience centers and tours provides an opportunity to engage new customers. Emerging markets in Asia Pacific present a lucrative avenue for exports.
Threats: Stringent regulations around whisky production could cramp innovation. Volatility in barley prices and climatic changes are external threats.
Key Takeaways
The global Scottish Whisky Market is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing consumption in emerging economies. The market was valued at US$ 4.97 Bn in 2018.
Scotland continues to be the dominant force in the global whisky industry with over half of the worldwide whisky consumption. The country accounted for over 75% of worldwide single malt whisky volume consumption as of 2020. Asia Pacific region has emerged as the fastest growing and most lucrative market for Scottish whisky producers driven by popularity in countries like India, China and Japan.
Key players operating in the Scottish whisky market include Diageo Plc., Pernod Ricard, William Grant and Sons Ltd., Bacardi Limited, Bowmore Distillery, Suntory Beverage & Food Limited, Brown-Forman Corporation, LVMH, Isle of Arran Distillery, La Martiniquaise, and The Edrington Group. These companies are engaged in expanding their product portfolios and strengthening global distribution networks.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
