Definition of Market/Industry:
Scottish whisky is a malt whisky, which is made up of grains. Originally, Scottish whisky was processed using barley, but around 18th century, wheat and rye-based Scottish whisky was made. On the basis of product type, Scottish whisky is segmented into single malt, blended malt, blended, single grain, blended grain, and organic whisky. Furthermore, on the basis of price range, Scottish whisky market can be segmented into premium, high end premium, and super premium.
Scottish whisky market was valued at US$ 4.97 Bn in 2018, and it is expected to reach US$ 7.89 Bn by the end of 2027, exhibiting a CAGR of 5.3% during the forecast period (2019 to 2027).
Several health benefits associated with consumption of Scottish whisky is expected to drive the market growth during the forecast period. For instance, Scottish whisky contains high levels of elegiac acid, which is an antioxidant compound that prevents the body against cancer. Furthermore, Scottish whisky also reduces the risk of stroke, helps prevent diabetes, and lowers the risk of dementia. These factors are expected to boost demand for Scottish whisky among health conscious people, globally.
Figure 1. Global Scottish Whisky Market Share (%), By Region, 2018
Stringent government regulations about the production and processing of Scottish whisky are expected to hamper growth of the global Scottish whisky market over the forecast period. For instance, according to the Government of U.K., the Scotch Whisky Regulations 2009 came into force from 23rd November 2009, which includes regulations related to the production, labelling, advertising, and packaging of Scottish whisky.
Furthermore, side effects related to excessive consumption of Scottish whisky are expected limit demand for Scottish whisky globally. Side effects such as ulcers and nerve damage, among others are a few long term side effects of over consumption of alcohol.
Market Opportunities & Trends
The market players within the Scottish whisky market are focusing on development of single cask bottling, owing to change in buying behavior of customers. Independent bottlers are experimenting with bottling at cask strength, maturing with different kinds of cask types such as rum casks or wine casks. Furthermore, there is an increasing trend of younger distillations bottled as single cask whisky in the market. The trend is attributed to the fact that independent bottlers are running out of finances, as long matured whisky are rare and expensive. The players within the market are also willing to offer high quality bottling at a lower price range.
Figure 2. Global Scottish Whisky Market, By Distribution Channel