by Scottish Whisky Market Poised For Growth Due To Rising Popularity Of Premium Whisky And Growing Tourism In Scotland
The Scottish Whisky Market is estimated to be valued at US$ 5.3 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:
Whisky is a type of distilled alcoholic beverage made from fermented grain mash. Scottish whisky is typically made from malted barley, though other grains such as wheat and rye are also used. Scotland is one of the top whisky producing countries globally, with several distilleries dotted across the Scottish Highlands and Lowlands regions. Some key styles of Scottish whisky include Speyside, Highland, Lowland, Campbelltown, and Islay malts. Premium and super premium variants of Scottish single malts and blended whiskies are highly popular amongst whisky connoisseurs globally.
Market Dynamics:
The Scottish whisky market is expected to witness significant growth over the forecast period, driven by the rising popularity of premium whisky variants amongst consumers globally. Increasing consumer disposable income levels have boosted spending on premium spirits and experiences such as whisky tastings and tours. Additionally, tourism in Scotland has significantly increased in recent years, attracting millions of visitors annually. Distilleries have emerged as popular tourist attractions, with many offering guided tours that provide insights into whisky production and sampling opportunities. This has augmented the demand for Scottish whiskies. Furthermore, exports of Scotch whisky have increased substantially, as producers look to tap growing international markets such as China, India and Brazil. Growing global geopolitical uncertainties and trade wars pose challenges to international trade and supply chains. However, ongoing trade negotiations are expected to create new opportunities for Scottish spirit exports over the coming years. Innovation in product variants
Segment Analysis
The Scottish whisky market is segmented into Scotch malt whisky and Scotch grain whisky. The Scotch malt whisky segment accounts for the dominant share of around 80% of the Scottish whisky market. This is because malt whisky is smoother and richer in flavor compared to grain whisky and is preferred by most consumers.
PEST Analysis
Political: The Scottish whisky market is governed by certain regulations imposed by the European Union and the UK government regarding production, import, and export of whisky. This provides a stable regulatory environment for market players to operate in.
Economic: The rising disposable incomes and growth of the overall beverage industry have been driving the sales of premium spirits including Scottish whisky globally. Any decline in global economic conditions can impact the market negatively.
Social: Significant increase in social drinking and acceptance of whisky as a celebration drink have boosted the consumption of Scottish whisky worldwide. Young population is prescribed fewer restrictions on drinking which is further supporting market growth.
Technological: Advanced technologies for aging, distilling, and bottling have allowed whisky manufacturers to maintain consistency in taste while improving operational efficiency. New flavors through experimentation have also widened the appeal.
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 preference for premium and craft spirits among consumers. The market size for 2018 was US$ 4.97 Bn.
Regional analysis: North America accounts for the largest share in the global Scottish whisky market, driven by growing awareness about single malt whiskies and availability of innovative brands. Europe is another major market led by countries like UK, Germany, France and Spain. Asia Pacific region is projected to be the fastest growing market with China, Japan and India experiencing increased uptake of single malt variants.
Key players operating in the Scottish whisky market are 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 key players are focusing on expanding their production facilities as well as distribution networks to strengthen their positions in the market.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
