by The global Irish whiskey market is estimated to be valued at US$ 4.7 Bn or Billion in 2022 and is expected to exhibit a CAGR of 7.44% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Irish whiskey is a whiskey made from malted barley and aged in oak barrels for a minimum maturation period of three years. It has a sweet and creamy flavor profile with hints of fruit, honey, vanilla and spice. Irish whiskey is gaining popularity among consumers driven by its smooth texture and varying flavor profiles ranging from spicy to sweet. The millennials demographic segment is increasingly adopting premium and super premium whiskeys including Irish whiskey due to the perception of sophistication attached to it. This has propelled market growth over the past decade.
Market key trends:
One of the major trends witnessed in the global Irish whiskey market is the rising popularity of blended Irish whiskeys containing aged single malts. These whiskeys have superior complexity and character making them ideal for sipping. Players are focusing on crafting blended malts using a combination of rare malts aged in different casks such as bourbon, sherry and port casks. This is generating high interest among connoisseurs looking for unique flavors beyond the regular blends. As a result, the blended malt segment is expected to witness significant growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The Irish whiskey market already has some large established players making it difficult for new entrants to acquire market share. Additionally, significant capital requirements for distilleries and brand building pose challenges.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitutes. However, established brands have strong buyer loyalty reducing impact of bargaining.
Bargaining power of suppliers: A few large companies control majority of whiskey supply resulting in higher supplier power. Suppliers can influence prices.
Threat of new substitutes: Other brown spirits like American whiskey, Scotch whiskey and rum pose threats. However, higher buyer preference for Irish whiskey due to uniqueness keeps threat moderate.
Competitive rivalry: Competition is high among existing players. Large players invest heavily in brand marketing to gain market share intensifying rivalry.
Key Takeaways
The global Irish Whiskey Market Share is expected to witness high growth, exhibiting CAGR of 7.44% over the forecast period, due to increasing preference for premium and craft spirits among consumers. The market size is projected to reach US$ 8.5 Billion by 2030 from US$ 4.7 Billion in 2022.
Regionally, North America dominates the Irish whiskey market led by the US. Changing consumer preference for unique whiskeys and marketing campaigns by manufacturers are driving sales. Europe is another major market led by Ireland and the UK. Rising experimentation with cocktails in pubs/bars is spurring demand.
Key players operating in the Irish whiskey market are Beam Suntory, Brown-Forman, Diageo, Pernod Ricard, William Grant & Sons, and Castle Brands. These players are focusing on strategic partnerships and innovations like small-batch premiumization to gain market share. Diageo and Pernod Ricard have major presence and brands like Jameson, Bushmills and Powers contributing significantly to their revenues.
