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There are several factors that have positively influenced this growth and they are outlined in this article. The first and foremost reason is the overall positive economic environment, which resulted in more investments in luxury goods and spirits around the globe. Secondly, there has been a surge of new and established players entering the market with new products and brands as well as distribution partnerships across geographies. Moreover, this has led to greater availability of these products at various retail outlets with improved accessibility for end consumers.
This article provides an overview of recent trends, issues, developments, and potential opportunities within the Scotch whisky market including its segments such
Global Environment for Scotch Whisky
Scotch whisky is one of the most consumed spirits in the world. Although the overall liquor market has been experiencing a slowdown over the last few years, the whisky market has been maintaining steady growth. Globally, the whisky market is expected to grow at a CAGR of 2.5% during the forecast period (2018–2025). Several factors are driving this growth. The first and foremost reason is the overall positive economic environment, which resulted in more investments in luxury goods and spirits around the globe. Consumers in developed economies are gradually recovering from the slowdown in their economies, which has boosted their spending power. Consumers in emerging markets are also increasingly adopting a more lavish lifestyle, which has positively influenced the demand for whisky.
Product Innovation and Expansion
Scotch whisky is a mature and highly competitive market, which has led to a greater focus on product innovation and expansion. There has been a rise in the number of new and established players entering the market with new products and brands as well as distribution partnerships across geographies. New product launches have been a key trend in the market in the past few years. Among the new products introduced in the past year, we can mention Bruichladdich Rocks, Dewar’s White Oak, Lagavulin 16-Year Old, Ballantine’s 17-Year Old, and The Dalmore 23-Year-Old.
Quality and Branding of Scotch Whisky
The overall influence of the Scotch whisky industry has seen an increase in the past few years because of its high quality, an increase in global demand, and an increase in the number of producers around the globe. Scotch whisky is the most renowned whisky globally and is known for its quality. The Scotch Whisky Association (SWA) indicates that whisky is made from a mash of fermented grains, predominantly barley, which is then distilled and aged in wooden casks. The ageing process is crucial to the maturation of the whisky.
Performance of Major Brands in the Market
Major brands in the market have performed well in the past year, which has positively influenced the market’s performance. Among the major brands, we can mention The Glenlivet, Johnnie Walker, and Dewar’s. The Glenlivet is one of the most popular and widely consumed whiskies in the world. The brand is owned by the French liquor company Pernod Ricard. Johnnie Walker is another famous brand that is owned and distributed by Diageo. Dewar’s is a brand owned by Bacardi Limited, a spirits company based in the Caribbean. Dewar’s is a blended whisky that is made from a blend of single malts.
Emerging Markets for Scotch Whisky
The global Scotch whisky market is dominated by developed economies such as the UK, the US, and India. In the coming years, emerging markets such as China, Brazil, and Mexico are expected to grow at a healthy pace. Several factors are driving this growth. Rising disposable incomes in these countries are a key driver. Additionally, there has been a shift in consumer preferences, with consumers moving towards luxury goods such as whisky. There have been some issues that have also influenced growth in these emerging markets. First and foremost, there has been a shift in consumer behaviour due to various factors such as demographic changes, economic sentiment, and health concerns, which has led to greater regulation in the industry.
Key Takeaways
The global Scotch whisky market has seen steady growth in the past few years. In the last 12 months, the sector registered another positive performance with volumes remaining above 1 million 9-litre cases. Consumers in developed economies are gradually recovering from the slowdown in their economies, which has boosted their spending power. Consumers in emerging markets are also increasingly adopting a more lavish lifestyle, which has positively influenced the demand for whisky. There has been a rise in the number of new and established players entering the market with new products and brands as well as distribution partnerships across geographies. Major brands in the market have performed well in the past year, which has positively influenced the market’s performance. The worldwide Scotch whisky market is dominated by developed economies such as the UK, the US, and India. In the coming years, emerging markets such as China, Brazil, and Mexico are expected to grow at a healthy pace.
