by Market Overview:
Scottish whisky is a type of distilled alcoholic beverage produced in Scotland and usually aged in oak barrels. The key varieties of Scottish whisky include single malt whisky, blended malt whisky, and blended whisky. Single malt whisky is distilled from malted barley at a single distillery using its own distinct methods and flavor. Blended malt whisky is a combination of various single malt whiskies from different distilleries. Blended whisky is a mixture of various grain whiskies and single malt whiskies to produce a more consistent flavor. Scotland is known worldwide for its whisky producing culture and tradition dating back to the 15th century.
The Scottish whisky market is estimated to be valued at US$ 7.69 Bn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
The growth of the Scottish whisky market is driven by the increasing popularity of premium and luxury spirits among high net-worth individuals globally. Premium spirits consumption has surged in emerging economies such as China, India, and Brazil owing to rising disposable incomes and changing lifestyle preferences. Furthermore, whiskey festivals and cultural tours showcasing Scottish customs have attracted many tourists to the country, thereby fueling the demand for authentically crafted whiskies. However, factors such as stringent regulations pertaining to alcoholic beverage production and volatile prices of agricultural commodities used in whisky making may hamper the market growth over the forecast period.
Segment Analysis
The Scottish Whisky market is segmented on the basis of product type and distribution channel. Based on product type, the malt whisky segment accounts for the largest market share owing to its smooth taste profile and complexity of flavors. Malt whisky is prepared from malted barley alone and undergoes a secondary fermentation in casks. Based on distribution channel, the offline segment dominates the market as people prefer examining and sampling whiskies before purchase from liquor stores and supermarkets.
PEST Analysis
Political: The government regulates the production, sales, and marketing of alcoholic beverages including whisky. Changes in taxation policies can impact demand.
Economic: Rise in disposable incomes in developing nations is driving sales as people are able to spend more on premium beverages. However, economic slowdowns can lower whisky consumption.
Social: Whisky is being embraced as a status symbol. Premiumization trend and interest inSingle Malt Scotch is supporting market growth. Social media marketing helps whisky brands to engage with new consumers.
Technological: Digital technologies are enhancing consumer experience via virtual tastings and tailored recommendations. Blockchain is being used to curb counterfeiting and ensure authenticity of whisky products.
Key Takeaways
The Scottish Whisky Market Size is expected to witness high growth, exhibiting a CAGR of 7.2% over the forecast period, due to rising premiumization and interest in specialty whiskies among consumers globally. The market size for 2023 is estimated at US$ 7.69 Bn.
By region, North America dominates the Scottish Whisky market led by heavy consumption in the US and Canada. Asia Pacific is the fastest growing market led by increases in whisky consumption in countries such as India, China and Japan where it is perceived as a luxury beverage.
Key players operating in the Scottish Whisky market are William Grant & Sons, Pernod Ricard, Diageo Plc, Bacardi Limited, Suntory Holdings, Aceo Ltd., Ben Nevis Distillery, Edrington, Louis Vuitton Moët Hennessy and Gordon & MacPhail. These players are focused on new product launches and expanding their overseas operations through partnerships and distribution agreements.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
