Market Overview:
Scottish whisky is a distilled alcoholic beverage product made from malted barley that has been distilled and then aged in oak casks. It is one of the finest spirits in the world and is known for its rich flavors, aromas, and complexity. Scottish whisky’s taste profile ranges from light and delicate to rich and robust. The whisky is well-appreciated across the globe for occasions as well as for enjoyment.
The Scottish whisky market is estimated to be valued at US$ 7.69 Bn in 2023 and is expected to exhibit a CAGR of 7.2% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends in the Scottish whisky market is the increasing demand for single malt whiskies. Single malt whiskies are produced in a single distillery using malted barley and without any additive grains. They have more robust flavors and aromas compared to blended whiskies. Consumers nowadays prefer premium and craft spirits made with natural ingredients and higher alcohol content. This has boosted the demand for premium single malts in recent years. The emerging middle class in developing economies is another driver expected to augment growth of the Scottish whisky market over the forecast period.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as the Scottish whisky market is quite consolidated and the Scotch whisky region faces strict regulations. However, some micro-distilleries are entering the market with regional speciality whiskies.
Bargaining power of buyers: The bargaining power of buyers is high as the buyers have a wide variety of substitute options available at different price points. Buyers can easily switch to other spirit categories if pricing and quality is not maintained by producers.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as barley is the key raw material for Scotch whisky and few large suppliers dominate the market. However, long term contracts are signed to ensure steady supply of quality barley.
Threat of new substitutes: The threat of new substitutes is high as other brown spirits and white spirits are encroaching market share. Further, changing consumer preferences also pose a threat with new premium spirit categories emerging.
Competitive rivalry: The competition in the Scotch whisky market is high amongst major global players.
Key Takeaways
The Global Scottish Whisky Market Size is expected to witness high growth, exhibiting CAGR of 7.2% over the forecast period 2023 to 2030, due to increasing demand for premium and craft spirits from millennials and Generation Z consumers.
Regional analysis: Europe accounts for the largest share in the global Scottish whisky market followed by North America. Within Europe, Scotland dominates and produces over 1 billion litres of whisky annually. However, Asian countries like China and India are growing at an impressive rate and expected to drive future demand.
Key players: Key players operating in the Scottish Whisky Market are William Grant & Sons, Pernod Ricard, Diageo Plc, Bacardi Limited, Suntory Holdings, Aceo Ltd., Ben Nevis Distillery, Edrington, Louis Vuitton Moët Hennessy and Gordon & MacPhail. These players are focused on expanding their premium whisky offerings and distribution networks in fast growing Asian markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
