Whiskey Market 2022 - By Component, By Product type, By Quality, By Distribution channel & Global Region - Market Size, Trends, Opportunity, Forecast 2027
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Whiskey is an alcoholic beverage made from grain that has been matured in oak barrels. For a whiskey to be a whiskey, it must have no additional flavouring; all of the flavour must come from the barrel in which it is aged. The mash of a whiskey is the grain mixture used in the distillation process. Consumers around the world presently have more sophisticated palates than they did a year ago. They're always on the lookout for distinctive, high-quality alcoholic beverages like whiskey and wine, among others. Natural components in alcoholic beverages improve its functionality, and customers are becoming increasingly interested in such goods. As a result, factors like these are propelling the worldwide whiskey industry.
COVID Impact Analysis
During the COVID-19 pandemic, the unexpected closing of restaurants, bars, and pubs as a result of stay-at-home orders issued by governments in several countries is likely to reduce product demand for a short to medium timeframe. Furthermore, travel restrictions implemented in many countries throughout the world resulted in a lack of barrels required for whiskey storage, which is anticipated to stifle market growth to some extent.
Several whiskey producers changed their operations from whiskey production to alcohol and hand sanitizer production during the coronavirus outbreak, which is projected to stymie product sales for the foreseeable future.
Top Impacting Factors
Innovations and developments in the manufacturing of alcoholic drinks, as well as an increase in the number of whiskey distilleries around the world, are among the primary drivers of the whiskey market's expansion. Premium and super-premium whiskeys are also in high demand in both developed and developing countries. Changing consumer habits, as well as the growing trend of socialising and mid-week/weekend parties among working professionals, are also positively impacting the market. Whiskey is frequently associated with a desire to demonstrate class and sophistication among peers, prompting customers to seek out novel and unusual drinking experiences. Furthermore, manufacturers are engaging in substantial promotional operations to increase distribution and purchasing channels, as well as the development of online retailing portals that give consumers with a hassle-free buying experience.
Furthermore, product developments such as organic whiskeys are rapidly gaining popularity among consumers all over the world. Other variables that are expected to contribute to market expansion include rising disposable income levels and increased urbanization. The Whiskey market is being driven ahead by the demand for variety in scotch whiskey from fast-growing emerging economies, as well as the demand for lower alcohol variants and organic whiskey among health-conscious users. Furthermore, with a growing emphasis on healthy living around the world, people are gravitating toward these whiskey variants. From 2013 to 2017, the value of organic alcoholic beverages exported from Denmark climbed by 129.60 percent, resulting in a rise in demand for organic whiskeys from Denmark and other nations across the world.
Europe holds the largest share in the whiskey market followed by North America and Asia Pacific. Rising demand from Germany, Belgium, the United Kingdom, France, Spain, and Poland is driving the regional market. However, due to the growing senior population in Western Europe, it is anticipated to increase at a slower rate than developing regions.
Over the last few years, the number of luxury goods makers in North America has exploded. Increased product demand has brought a slew of new players to the industry. Furthermore, shorter approval periods from federal and state regulatory agencies have encouraged distilleries to begin making whiskey. As a result, the number of major distilleries in the area is expected to skyrocket in the next years. Kentucky, Tennessee, Pennsylvania, New York, Texas, California, Arkansas, Michigan, Kansas, North Carolina, West Virginia, and Vermont are some of the key states in the United States with a substantial number of craft distilleries. The American Distilling Institute, the Alcohol and Tobacco Tax and Trade Bureau, and the American Craft Spirits Association all regulate distilleries. In North America, consumers who have recently reached the Legal Drinking Age (LDA) play a critical role in driving the market. Other important economies in the region's blended product market include Canada and Mexico, in addition to the United States.
While Covid-19 shut down most of the world in 2022, whiskey continued to mature in rickhouses. The demand for American dark spirits has barely slowed. Consumer interest soared during the pandemic, fuelled in part by the fact that so many people were stuck at home and in need of a drink. This had an impact on the popularity of American whiskey. Store Pick Single Barrels unique whiskeys, chosen as one-off bottlings by stores or clubs, had a banner year in 2022. This may sound strange, given that sampling barrels in the midst of a pandemic was a difficult undertaking. However, as the industry progressed, shop pick single barrels became more popular as they became more appealing to the general public.
In recent years, there has been a surge in interest in restoring traditions, bringing back traditional production methods and recipes with a modern twist. This contemporary version will undoubtedly be a huge trend in 2022, helping to engage younger generations as they learn about the history and quirks of companies and products. Several distilleries are reviving old recipes in response to this demand. They use current ageing procedures to give traditional components a fresh twist, resulting in different flavour nuances. Consumers, particularly millennials, are always looking for new things to do. This is apparent in their approach to and enjoyment of new whiskies. People have been highly interested in virtual experiences where they may sample, study, and learn more about whisky as a result of the pandemic that shook the world last year. This opens up new possibilities in the future, where virtual and in-person events may both engage and build rapport with the target whiskey market.
The whiskey market is classified into product type, quality and distribution channel. The product type is further divided into malt, wheat, rye, corn, blended and others. Based on the quality it is subdivided into premium, high-end premium and super premium. On the basis of distribution channel, it is classified as off-trade and on-trade. Off-trade is further divided into supermarkets and hypermarkets, discount stores, online stores and others. The On-trade is bifurcated into restaurants and bars, liquor stores and others.
The market leaders in the whiskey market are Diageo plc, Bacardi Limited, Suntory Beverage & Food Limited, Pernod Ricard, The Brown–Forman Corporation, Asahi Group Holdings Ltd, William Grant & Sons Holdings Ltd, The Edrington Group, Allied Blenders and Distillers Pvt Ltd, Constellation Brands, La Martiniquaise, etc.
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