Whiskey Market Size & Share to See Modest Growth Through 2027

Rise in the millennial population globally, increase in spending capacity and changing consumer taste profile for alcoholic beverages is expected to raise the demand for specialty whiskeys such as singe malt whiskey and blended whiskey over the forecast period. Moreover, rising consumer awareness regarding the health benefits of whiskey such as its ability to lower risk of heart diseases, diabetes and dementia to some extent, fight cancer, promote weight loss, act as a digestive aid, and reduce stress, if consumed in moderation should further raise product demand.

Whiskey is a type of spirit produced using different grains such as corn, wheat, barley, and rye, among others by distilling. Whiskey can be consumed directly or by using in different cocktail and shot recipes. Blended whiskey, Single Malt whiskey, Irish whiskey, Japanese whiskey, Scotch whiskey, Bourbon whiskey, Tennesse whiskey, Canadian whiskey and Rye whiskey are some of the types of whiskey available in the market.

Increasing product innovations such as organic whiskey are likely to positively influence consumer preference and boost the whiskey market demand. Growing trend of social gatherings and parties among the younger generation should further favour growth of the market.

However, the sudden closure of restaurants, bars and pubs owing to the stay-at-home orders issued by governments of different countries during the COVID-19 pandemic is likely to decline the product demand for a short to medium timeframe. Moreover, the travel restrictions imposed in different countries of the world created a shortage of casks required for storage of the whiskey, which is likely to take a toll on the market growth to some extent. Several whiskey manufacturers had diverted their operations from production of whiskey towards production of alcohol and hand sanitizers during the coronavirus pandemic, which is expected to further hamper product sales for a medium timeframe.

The growth of the global whiskey market is majorly driven by the introduction of favorable trade policies by government of various countries coupled with reduction of import duties on spirits. For instance, in July 2018, a deal was signed between the European Union and Japan for removing tariffs on traded goods such as Japanese whiskey and scotch. Moreover, increasing distilleries across the globe, is expected further to drive growth of the market over the forecast period. For instance, Her Majesty's Revenue and Customs stated, in 2018, a total of 54 new distilleries were opened in the U.K. However, the global whiskey market growth is expected to be hampered, owing to fluctuations in the average demand for the aged premium whiskeys.