Market Overview:
Irish whiskey is a traditional whiskey produced in Ireland from a mash of cereal grains that predominantly includes malted barley and may also include other grains such as wheat, corn, or oats. Irish whiskey is traditionally distilled three times in copper pot stills, helping produce a spirit with a lighter color and gentler flavor compared to single malt scotch whiskey. The key advantage of Irish whiskey is its smooth yet complex flavor that comes from aging in oak sherry casks imported from Spain, which imparts notes of dried fruits and spices. Moreover, the use of column stills allows for a lighter texture compared to single malt Scottish whiskies. Irish whiskey is usually either blended or pot still whiskey and enjoys popularity worldwide due to its distinctive smooth flavor profile.
Market key trends:
One of the key trends in the market is the rising popularity of craft Irish whiskey. Craft distillers are introducing novel variants like apple, berries, mint, spiced, coffee, and honey flavors to appeal to new consumers and expand their product range. For instance, Killowen Distillery produces an Irish whiskey flavored with honeycomb and toasted oak. These newer whiskey variants with added flavors offer diversified choices to suit evolving consumer tastes and preferences. Furthermore, key players operating worldwide are introducing novel variants, such as apple, berries, mint, spiced, coffee, and honey, to expand their product portfolio. This wide variety of Irish whiskey products available in the market is expected to augment market growth over the forecast period.
Porter’s Analysis
Threat of new entrants: The Irish Whiskey Market Demand has high entry barriers due to stringent regulations for production and aging requirements. Brand loyalty and capital requirements further discourage new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes like scotch, bourbon and rum whiskey. However, growing demand is shifting power towards buyers.
Bargaining power of suppliers: A few major suppliers control the supply of raw materials like barley, corn, rye and oak wood barrels. This gives them significant bargaining power over whiskey producers.
Threat of new substitutes: Popularity of craft spirits and cocktails pose threat to Irish whiskey. However, Irish whiskey has established brand image that attracts consumers.
Competitive rivalry: Major players compete on basis of flavor innovations, aging, quality and competitive pricing.
Key Takeaways
The global Irish whiskey market is expected to witness high growth, exhibiting CAGR of 7.4% over the forecast period 2023 to 2030, due to increasing consumption among millennials and rising experimentation with unique flavors. The market size is projected to reach US$ 8.3 Bn by 2030 from US$ 4.7 Bn in 2023.
Regionally, North America accounts for largest share of global Irish whiskey consumption driven by rising experimentation among consumers. Asia Pacific is fastest growing regional market with 7.9% CAGR led by growing middle class population in countries like India and China. Emergence of Irish pubs and bars have further boosted sales.
Key players operating in the Irish whiskey worldwide are introducing novel variants, such as apple, berries, mint, spiced, coffee, and honey, to expand their product portfolio. Diageo commands leading market share with brands like Jameson, Bushmills and Paddy. Other prominent players are adopting branding and marketing strategies to strengthen their position.
Key Takeaways
The Irish whiskey market demonstrates high growth potential through 2030. North America holds leading position while Asia Pacific shows promising growth. Innovation in flavors also aids expansion. Key players strengthen portfolio and market presence via branding.
Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it