Whiskey Market Size, Share & Industry Analysis by Type (Scotch Whiskey, Irish Whiskey, Bourbon Whiskey, Canadian Whiskey, and Others), Analysis by Distribution Channel (On-Trade and Off-Trade), and Regional Forecast, 2024-2032

Whiskey has gained tremendous popularity with rapid urbanization coupled with rising disposable income and growth of the tourism industry worldwide. Moreover, consumers are willing to pay more for high-quality and premium whiskies, which encourages the manufacturers to introduce premium quality, aged and rare whiskey products to the retail shelves. For instance, in May 2023, Orphan Barrel Whiskey Co., a Diageo-owned company, introduced Orphan Barrel Whiskey Co., a rare 14-year-old Rye Whiskey. The new product is infused with sweet vanilla buttercream, lightly toasted oak aroma, baking spices, rye toast, and orchard fruits. According to the Distilled Spirits Council of the U.S., American whiskey consumption increased by 7.01% in 2020 compared to 2019. Several factors, including a favorable environment for imported whiskey, especially in India and China, paired with changing lifestyles, rising aspirations, and a growing population of millennial buyers, boost the whiskey market growth.

Furthermore, the whiskey market is witnessing high competition owing to a diversified product portfolio and growing investment strategies. For instance, in August 2023, Scotch Whisky Investments (SWI), a Dutch-owned firm, received a grant from Scottish Enterprise to support its investment in a new whiskey storage facility in Glenrothes. The new planned facility would provide premium cask storage along with bottling and additional cask services.

Moreover, government laws and taxation policies also influence market growth. The product, being an alcoholic beverage, adheres to several government restrictions, which is a major restraint to the industry’s expansion.

Impact of COVID-19 

The COVID-19 pandemic drastically impacted the global alcohol industry, including the whiskey market. Initially, the pandemic disrupted the production and distribution chains, leading to supply chain challenges. Restaurants, nightclubs, pubs, and import outlets for whiskey sales faced closure or reduced capacity, impacting the sales. Moreover, the drinking behavior of consumers changed significantly during the pandemic. Retail whiskey sales, especially through e-commerce, saw an uptick as people consumed more alcoholic beverages at home during the lockdown. According to the National Center for Biotechnology Information (NCBI), the e-commerce platform grew steadily owing to the restrictions for the on-trade channels. For instance, in the U.K., in 2020, the online sales of spirits grew by 23% compared to 2019 through online retail stores.

Key Insights

The report covers the following key insights:

• Products Launched by Key Market Players 


• Overview of the Whiskey Industry


• Impact of COVID-19 on the Whiskey Market


• Drivers of the Whiskey Industry


• Recent Investments in the Whiskey Market

WHISKEY MARKET SEGMENTATION ANALYSIS

Analysis by Type

The scotch whiskey segment is expected to hold a major share of the global whiskey market. Positive policy environment across Scotland and U.K., increasing investment to strengthen the industry, growth in distilleries and warehouses are influencing the rising demand for scotch whiskey. According to the Scotch Whisky Association (SWA), the U.K. governement promised to provide USD 15.1 million under its the second phase of its green fund policy to support four distellery sustainability projects in 2020. The distinct flavor and intricacy of Scotch whiskey have further increased its demand among millennials. The growing demand propelled several prominent players to strengthen their production base to fulfil the global demand for the product. For instance, in April 2022, Chivas Brothers, the Scotch whiskey business of Pernod Ricard, invested USD 92.52 million into Aberlour and Miltonduff, two of its strategic single malt distilleries. The investment would allow the company to upgrade sustainable distillation technologies and expand production capabilities.

Irish whiskey is one of the fastest growing categories in the global whiskey market. Growth in tourism industry has become a significant driver of the industry, with many distilleries opening visitor centers and offering tours. The bourbon whiskey segment is expected to expand at a promising growth rate over the forecast period owing to growing consumer interest in artisanal and authentic products.

Analysis by Distribution Channel

The off-trade segment is expected to hold a major share of the global market. The off-trade segment includes supermarkets and hypermarkets, wines & spirits shops, online stores, and others. The off-trade channel offers convenience, allowing consumers to choose from a wide range of whiskey brands. According to the  National Center for Biotechnology Information, in 2020, off-trade sales grew by an estimated 27%, majorly due to booming e-commerce platforms during the pandemic.

The on-trade segment is expected to grow with promising growth rate during the forecast period with increasing on-trade establishments such as pubs, bars, restaurants, and clubs worldwide. The growing cocktail culture trend in pubs and bars further drives the demand for the product.

Analysis by Region

Europe is expected to hold a major share of the global whiskey market. The whiskey demand in Europe has historically been strong. Further, growing trend toward premium and craft whiskey products paired with positive regulatory policies is influencing the market growth. Countries such as Scotland and Ireland are renowned for their whiskey production and consumption. The government has been developing strategies to increase the export potential of whiskey in the region. For instance, in January 2022, the U.K. signed a free trade deal with India, bringing huge benefits for Scotch whiskey producers. The U.K. Government reduced export duties upto 150% on whiskey, offering a boost to distilleries and the whole spirits industry.

Key Market Players

• Asahi Group Holdings, Ltd.


• Diageo PLC.


• Pernod Ricard S.A.


• Suntory Holdings Limited.


• William Grant & Sons


• Brown-Forman Corporation


• La Martiniquaise


• Constellation Brands, Inc.


• Angus Dundee Distillers plc.


• Allied Blenders & Distillers.

Key Industry Developments

• In September 2023, BLACKENED Whiskey's Master Distiller & Blender collaborated with Kaveh Zamanian, founder of renowned craft whiskey distillery Kentucky Bourbon Hall of Fame Whiskey Maker. This product is crafted from a base of 13-year-old straight Tennessee bourbon whiskey containing a mash bill of 64% corn, 36% rye, and Rabbit Hole Heigold High Rye Double Malt Kentucky straight bourbon is distilled from mash bill of 70% corn, 25% malted rye, and 5% malted barley.


• In October 2022, William Grant & Sons, an independent, family-owned Scottish company, launched a new range of travel retail exclusive whiskies under its Glenfiddich whisky brand. The range includes four types of whiskies: Vat 01 is 40% ABV, Vat 03 is 50.2% ABV, Vat 02 is 43% ABV, and Vat 04 is 47.8% ABV.