Scotch Whisky Poised to Grow 9% by 2028
According to recent news, Scotch whisky sales are expected to reach $15 billion by 2028. This is good news for the 150 distilleries across Scotland that create single malt whiskies and blends. After taking a backseat for some time, the impressive growth prospects will likely spur investment in the sector.
The new report from global research and advisory company Technavio cites luxury and ultra-premium releases as the driving factor. This represents a compound annual growth rate of 9% over the next four years, driven primarily by expensive expressions.
“High-end Scotch whiskies are valued for their exceptional quality and exclusivity, commanding higher prices compared to standard options,” said the report. “Consumers gladly pay more for the craftsmanship and refined flavors found in these premium offerings. Luxury whiskies often boast longer maturation periods, resulting in complex taste profiles.”
Scotch Whisky Sales to Grow by 9% by 2028
According to Technavio, the main obstacle to Scotch whisky success comes from competition from other drink categories. These include popular agave spirits such as mezcal, vodka, rum, and tequila. While European nations like Germany, France, and Italy are lucrative markets for these categories, China’s main challenge is baiju.
Although China and Asia have been important over the years for high-end single malts, baiju still dominates the booze chain. This is relying completely on sales volume alone. The report recommends possible solutions, which may prove too open to follow:
“To thrive in this competitive environment, Scotch whisky manufacturers must focus on innovative marketing, product development, and customer base expansion.”
While that is commendable, single-malt distilleries and the companies behind them, such as Diageo and Pernod Ricard, will need actualization methods.
Considering Technavio’s bullish predictions, this report is good news for the whisky industry. The 150 distilleries may have found a beacon from which to summon investment. The other option would be to maintain the status quo and watch the four years roll by.
