July 12, 2024
Scottish Whisky Market

Scottish Whisky Market Is Estimated to Witness High Growth Owing to Increasing International Demand

The Scottish whisky market is estimated to be valued at US$ 7.69 Bn in 2023 and is expected to exhibit a CAGR of 5.3% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:-

Scottish whisky refers to malt and grain whiskies produced in Scotland. Scotland has a long tradition of whisky production dating back to the 15th century. Key varieties of Scottish whisky include single malt Scotch, blended Scotch, and grain whisky. Single malt Scotch is produced from malted barley at a single distillery using the traditional pot still method of distillation. Blended Scotch is a combination of single malt and grain whiskies from different distilleries that enhances the flavor.

Market Dynamics:-

The Scottish whisky market is driven by increasing international demand, especially in Asian countries such as China, Japan, and India. Rapid economic growth and rising disposable incomes in Asia are fueling foreign interest in luxury goods including Scotch whisky. Additionally, many Western markets are also witnessing revival in whisky consumption among younger consumers, contributing to overall market expansion. Furthermore, key players are promoting Scotch whisky as a premium gift and investment product through novel packaging, limited editions, and collaborations which is augmenting the market value. However, stringent regulations and high taxes on whisky production in key markets pose a challenge to market growth.

SWOT Analysis:-

  • Strength: Scottish Whisky has a strong brand image globally due to its heritage and craftsmanship. It is known for its quality and taste. It has a protected geographical indication which safeguards its unique production process. Scottish Whisky producers are innovating by launching variety of flavors to attract new consumers.
  • Weakness: Scottish Whisky faces strong competition from other whisky producing countries. Changing consumer preferences towards premiumization is a challenge. Dependency on bar and restaurant sales make it vulnerable to economic downturns.
  • Opportunity: emergence of online retail and direct-to-consumer model allows easy access to global markets. Growing middle class in Asia Pacific and emphasis on premium/craft spirits offer huge untapped potential for Scottish Whisky.
  • Threats: stringent regulations regarding alcohol distribution and taxation varies across global markets. Volatile commodity prices and climate change impacts barley yield and distillation.

Key Takeaways:-

The Global Scottish Whisky Market Demand is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing demand for premium and craft spirits. The market size for 2023 is US$ 7.69 Bn.

Regional analysis The Asia Pacific region is expected to dominate the Scottish Whisky market during the forecast period. Countries like China, Japan and India are witnessing rising disposable incomes and changing preferences towards luxury consumables. Several Scottish Whisky producers are expanding distribution networks and setting up bottling plants in Asia to tap into the high-potential region.

Key players operating in the Scottish Whisky market are William Grant & Sons, Pernod Ricard, Diageo Plc, Bacardi Limited, Suntory Holdings, Aceo Ltd. Key players are focusing on innovative product launches using quality locally sourced ingredients. Strategic collaborations with regional distillers and marketing initiatives to strengthen brand recognition in emerging markets.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it