Scottish Whisky Market Is Estimated To Witness High Growth Owing To Consolidation Activities

Scottish Whisky Market
Scottish Whisky Market

The Scottish Whisky Market is estimated to be valued at Us$ 5.30 Bn in 2022 and is expected to exhibit a CAGR Of 5.3% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.


Market Overview:


Scotch whisky is a unique spirit produced in Scotland from malted barley. It offers great depth of flavor from fruity and floral notes to woodiness. Scotch whisky has been gaining popularity worldwide due to its versatility and premium charm. The demand is growing for single malt and specialty whiskies.

Market key trends:


Consolidation activities among distillers is a key trend driving the growth of Scottish whisky market. Large distillers are acquiring smaller distillers to expand their portfolio of single malts and craft whiskies. For instance, in 2021, Bacardi Limited acquired William Grant & Sons' craft spirits business including gin brand Monkey 47 for $620 million. Such strategic moves allow companies to leverage brand recognition, strengthen distribution networks and tap into new consumer segments. Product innovation in terms of cask finishes, limited editions and vintage releases is another factor fueling the market growth. Developing exclusive experiences around whisky via distillery tours, tastings and events also aids in market expansion.

Porter's Analysis

Threat of new entrants: High capital requirement and established brand value makes entry difficult for new players.

Bargaining power of buyers: Buyers have high bargaining power due to presence of substitutes like other spirits.

Bargaining power of suppliers: Suppliers of raw materials like barley have moderate power due to availability of alternatives.

Threat of new substitutes: Substitutes like beer, wine and other spirits pose threat due to customer preferences.

Competitive rivalry: Intense competition exists among existing players to increase market share.

SWOT Analysis

Strengths: Scotland is known for its whisky making tradition. Established brands enjoy brand loyalty.

Weaknesses: Heavy taxation and regulations raise production costs. Dependency on agriculture makes prices volatile.

Opportunities: Growing popularity of premium and craft spirits worldwide offers new export avenues.

Threats: Economic slowdowns can dampen consumer spending. Strict norms hinder expansion of production facilities.

Key Takeaways

The global Scottish Whisky Market is expected to witness high growth, exhibiting CAGR of 5.3% over the forecast period, due to increasing preference for premium and craft spirits. Scotland produces over 1 billion bottles of whisky each year. The UK is the largest consumer market for Scotch whisky, while the US and France also offer significant opportunities.

Regional analysis: The market in North America region is growing at the fastest rate led by US and Canada. Asia Pacific is also emerging as a major whisky consuming region globally driven by growth in countries like China, Japan and India. Scotland dominates globally with over 90% market share, led by Speyside and Islay regions.

Key players operating in the Scottish whisky market are Diageo Plc., Pernod Ricard, William Grant and Sons Ltd., Bacardi Limited, Bowmore Distillery, Suntory Beverage & Food Limited, Brown-Forman Corporation, LVMH, Isle of Arran Distillery, La Martiniquaise, and The Edrington Group.


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