"Market Intelligence that Adds Flavour to Your Success"
The global scotch whisky market size was valued at USD 30.58 billion in 2022 and is projected to grow from USD 32.72 billion in 2023 to USD 50.23 billion by 2030, exhibiting a CAGR of 6.31% during the forecast period.
Scotch whisky is a globally renowned distilled spirit made in Scotland from cereals, water, and yeast. The whisky has a distinctive smoky flavor due to the selection of ingredients and the distillation method. It must be distilled and aged for at least three years in Scotland, however, it shouldn’t be necessarily bottled in Scotland. Some scotch whiskies are distilled and aged in Scotland and bottled in another country.
Scotch whisky is mainly available in five categories, namely single-grain, blended grain, blended malt, single malt, and blended scotch. The market is expected to experience substantial growth due to the growing consumer demand for premium products. According to the Scotch Whisky Association (SWA), global export sales of scotch whisky rose by more than 4%, reaching a total of USD 6.36 billion in 2019. The market is further gaining traction due to the wide availability of various unique flavors such as malt and honey, dry fruit and nut, elegant and floral notes, fresh fruit, and vanilla. This diversity of flavors continues to attract new customers every year.
COVID-19 Pandemic Restricted Scotch Whisky Supply Impacting Market Growth
Globally, the COVID-19 pandemic considerably affected the scotch whisky industry. Governments across the globe enforced strict containment measures, including national lockdowns, curfews, and social distancing mandates to control the spread of coronavirus. According to the SWA, the U.K. supply chain was disrupted due to the COVID-19 restriction and delays in food and drink exports. The whisky industry in the UAE, China, and other countries, highly depends on the hospitality industry. Thus, the closure of bars, pubs, restaurants, and clubs significantly impacted whisky consumption.
Moreover, industry players experienced numerous hurdles and challenges in managing sustainable business operations. Due to lockdown and restrictions on large public gatherings, companies reduced employee strength in production plants. Trade restrictions also impacted the supply of raw materials. To overcome these challenges, producers needed to restructure their strategies to achieve stability in business. Despite the sudden disruption of cash flows in raw material procurement and product distribution due to COVID-19, the prominent players and regional distilleries were inclined toward digital solutions. This allowed them to continue their operations and deliver whisky to consumers through e-commerce channels, thereby generating revenue.
Growth of Regional Brands and Premiumization are the Trends Emerging in the Market
Consumption of single-malt scotch whisky beverages is more likely to be associated with consumers' affluent and lavish lifestyles. This association is a key driver behind the market's growth. Consumers in major developed economies exhibit a strong interest in buying premium alcoholic products. Manufacturers are trying to emphasize launching premium and palatable brands as consumers become ‘whisky connoisseurs’ and taste assessors. Luxury whisky is one of the current consumer trends, contributing to increased revenue on a global scale.
With the recent introduction of products by companies such as Royal Statue, Pernod Ricard, and Diageo Plc., millennials and less experienced consumers will have more opportunities to explore and enjoy these offerings. In March 2023, Pernod Ricard and The Glenlivet launched The Goonlivet, a unique whisky that blends the finest single malt Scotch with the cultural phenomenon of the goon bag. The Goonlivet contains 1.5 liters of Glenlivet premium 12-year-old single malt in a bag. This innovative product, built on The Glenlivet's longstanding brand foundation, 'Original by Tradition,' has successfully resonated with a younger audience, extending the reach of the brand that has been producing single malt since 1824.
Request a Free sample to learn more about this report.
Rising Demand for Organic Scotch Whisky to Stimulate Market Growth
The global market is expanding due to the rising demand for new products from emerging markets and the desire for organic whisky among health-conscious drinkers. Moreover, with the growing emphasis on adopting premium lifestyles worldwide, consumers are gravitating toward top brands. To cater to the changing consumer behaviors, major market participants have started a trend in organic whiskys, which distinguishes themselves from conventional whisky by utilizing organic barley and malt grains, avoiding artificial additives, flavors, and colors. These organic whiskies adopt natural production methods and follow strict organic certification standards, resulting in a more authentic and sustainable whisky experience. The growing demand further encourages manufacturers to launch innovative products, ensuring market growth. For instance, Bainbridge Organic Distillers has developed artisan-distilled spirits from USDA-certified organic wheat barley specifically grown for their distillery. Considering another instance, in September 2022, Nc’nean launched its first organic single malt whisky, which comes in a 100% recycled clear glass bottle. The new product is certified organic and is made using 100% renewable energy.
Emergence of Online Platforms to Support Higher Revenue Generation to Drive Market Growth
E-commerce has become an increasingly popular choice for buying alcohol over the past few years and this trend is expected to grow over the forecast period. Online shopping offers consumers various benefits, such as on-time home delivery, convenient shopping experience, and access to various offers. The online sales channel is extremely important in major markets such as the U.S., the U.K., Italy, Spain, and other markets. According to the Dutch Ministry of Foreign Affairs, online sales of alcohol in developed regions such as North America and Europe are expected to grow annually by around 15%. Therefore, manufacturers are focusing on developing new e-commerce platforms and establishing collaborations to boost their sales in the market. The expansion of technology and improved distribution networks in e-commerce are further expected to propel the growth of the market.
Increasing Consumer Inclination Toward Other Alcoholic Beverages May Hamper Market Growth
In recent years, a considerable percentage of the global population has turned its preference toward beer, wine, and other alcoholic beverages. This factor has negatively affected product sales in different regions of the globe. Increasing modernization and growing alcohol consumption worldwide have prompted alcohol industry producers to launch innovative and bold drink variations. The gradual change in consumer preference toward different types of alcoholic beverages, such as spirits, wine, beer, and others, due to their affordability and availability, could hamper market growth. According to the American Addiction Center (AAC), a major portion of alcohol consumption globally consists of beer, cider, wine, and spirits. According to Statistics Canada, wine sales in 2020/2021 saw a 2.1% year-on-year increase, reaching USD 8 billion. Hence, the trend toward other alcoholic beverages is likely to pose a challenge to the market forecast in the coming years, which may hamper market growth.
Blended Scotch Segment Holds Major Share Due to its High Consumption and Availability
Based on type, the market is segmented into single malt, blended, and others. The blended scotch whisky segment holds the largest market share as it is the most widely consumed whisky variant due to its quality, authenticity, and rich taste. Blended scotch whisky is a blend of grain and single malt whisky, providing a delicate aroma that many consumers favor. Moreover, blended whisky is cheaper and has long been the preferred choice for millions of consumers.
The single malt scotch whisky is the fastest-growing segment in the market, primarily owing to increasing exports. Taiwan has been a significant whisky buyer for high-end single malt whisky. In 2021, Taiwan imported more than USD 553 million in scotch whisky, becoming the U.K.’s third largest market after the U.S. and France. In Taiwan, single malt whisky consumption is on par with blended whisky, with a product breakdown ratio of 45% to 55%.
To know how our report can help streamline your business, Speak to Analyst
Off-trade Segment to Dominate Due to Strong Sales of Scotch Whisky
On the basis of the distribution channel, the market is segmented into off-trade and on-trade. The off–trade channel segment witnessed highest growth in 2022 and is expected to retain its dominance in the upcoming years. A trade distribution channel is one of the most effective sales channels for bringing products to the market. Off-trade channels include supermarkets, convenience stores, and specialty stores. It offers a wide range of products at low prices over pubs, bars, and other retail channels. This has increased the popularity of retail outlets worldwide. Investors are focusing on developing modern convenience stores, aiming to provide affordable and easy shopping options, thereby attracting high revenues. In 2021, William Grant & Son's annual report shows that the spirits sector's off-trade sales increased by 14.3%. This is due to an increase in the availability of products in off-premises channels after the COVID restrictions re-opening.
The on-trade sales are also increasing due to Westernization and multiculturalism globally, which are expected to bolster the popularity of on-trade channels in the near future.
Europe Dominated the Global Market Due to High Product Consumption
Europe Scotch Whisky Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Europe held the major market share in 2022. It has the largest whisky consumer base, supported by the robust economy, increased disposable income, and customer associations. In addition, France, Spain, and Poland are also experiencing strong demand for whisky, with varied flavors and alcohol content preferences. Scotland is the largest producer of scotch whisky worldwide, exporting to various countries. The whisky industry employs 11,000 people in Scotland, with over 7,000 of them working in rural areas. In addition, it supports 42,000 jobs across the U.K., solidifying Scotland’s status as the world's largest producer. In 2020, there were 131 Single Malt distilleries in Scotland, with a total production capacity of 400,950,000 liters. The industry is experiencing a diverse global expansion over the past decade, including the emergence of start-ups and innovation.
Asia Pacific is the fastest-growing market, with Taiwan, Singapore, India, and China witnessing growth due to changing consumer lifestyles and rapid urbanization. The increase in disposable income of consumers and the widespread adoption of Western culture have led to a growing preference for scotch whisky in these regions. These factors have driven the growth of this market in the region. For instance, India’s whisky consumption surged to 219 million bottles in 2022, representing a double-digit growth. This figure marked a substantial annual increase, with a 60% rise compared to the 136 million bottles consumed in 2021.
To know how our report can help streamline your business, Speak to Analyst
North America is expected to witness significant growth in the global market due to the growing popularity and preference of scotch whisky while being the largest importer globally. The U.S. became a significant whisky importer in 2019, and the growing number of distilleries has fueled the scotch whisky market share.
South Africa has the largest consumer food service sector in the Middle East & Africa. This region comprises various chain stores, including well-known franchises and independent food and beverage enterprises. The hotel and tourism industries are strongly related to the industry. The hospitality and tourism industry in South Africa is fiercely competitive and one of the fastest-growing economies, with a wide range of accommodations and a mix of business and leisure travelers.
Key Players Focus on New Product Development to Stay Competitive in the Market
The industry comprises both local and international players, with the number of local players exceeding that of international players. Due to the increasing demand for scotch whisky, market players are expanding their presence globally by diversifying their product portfolios and launching new offerings. For instance, in August 2023, Eden Mill launched a new blended scotch whisky, the Guard Bridge. This blend is centered around the St. Andrews-based distillery's single malt and other single malts from distilleries in the Highlands and Lowlands of Scotland. It is bottled at 46% alcohol by volume (ABV) and retains its natural color. This product launch helped the company to enhance its product portfolio globally.
An Infographic Representation of Scotch Whisky Market
To get information on various segments, share your queries with us
The market research report provides a comprehensive market analysis and focuses on key aspects such as key players, market share, competitive landscape, types, and distribution channels. Besides this, the report offers key insights into the scotch whisky market trends and highlights key industry developments. In addition to the abovementioned factors, the report encompasses several factors that have contributed to the market's growth over recent years.
CAGR of 6.31% from 2023 to 2030
Value (USD Billion)
By Distribution Channel
According to Fortune Business Insights, the global market size was USD 30.58 billion in 2022.
The market is likely to grow at a CAGR of 6.31% over the forecast period (2023-2030).
Based on type, the blended segment is expected to be the leading segment during the forecast period.
Rising demand for organic scotch whisky is stimulating market growth.
Edrington, Diageo Plc, and Pernod Ricard are the major players in the market.
Europe dominated the market in terms of sales in 2022.
Increasing consumer inclination toward other alcoholic beverages may hamper market growth.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- UGlobal hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry