Irish whiskey category anticipated to grow in volume
Global Irish whiskey volumes are estimated to increase, according to the research outlined in a new report by Technavio.
The research data has identified that between 2021 to 2026, the global Irish whiskey category will have grown by US$1.54 billion with the information showing that, despite Irish whiskey’s growth, it is also anticipated that the category’s momentum will “decelerate at a CAGR of 5.33% during the forecast period”.
The report, which takes in factors such as the financial performance of companies, growth strategies, product innovations, new product launches, investments, and growth in market share, has found that the Irish whiskey category is “concentrated” among “a few prominent vendors”. These include drinks giants including:: Asahi, Becle SAB, Brown Forman, Diageo, G and J Distillers, Pernod Ricard, Suntory, Teeling, West Cork Distillers and William Grant and Sons.
According to Technavio, the Irish whiskey category is “subject to rapidly changing consumer demands and preferences” and many of the “major vendors are focusing on acquiring smaller brands to increase their market presence”.
The report sets out the category based on distribution channel (offline trade and online trade) and shows how “the offline trade segment will account for a significant share of the global market during the forecast period” noting how “individual retailers, supermarkets, and hypermarkets are some of the most common offline trade distribution channels for Irish whiskey” due to offering “a wide range of products, and dedicated sections for different brands of Irish whiskey”. Added to this, it states that they also “offer a cost advantage, as they do not have to incur the additional cost of seating” and “such advantages will drive the segment’s growth during the forecast period”.
The findings also identify how “Europe will account for 34%” of the category’s growth during the forecast period” and outlines how “Russian Federation and Germany are the key countries” for Irish whiskey. Moreover, it states how the Irish whiskey category’s growth in this region will be “faster than the growth of the market in South America and MEA”.
Technavio details how the Irish whiskey category’s growth is being driven by the “increasing demand for premium whiskey” For instance, Micil Distillery has launched two new Irish whiskeys, namely Micil Inverin small blended Irish whiskey and Micil Earls Island Single Pot Still Irish Whiskey.
Additionally, the findings describe how the “increasing demand for craft whiskey is a key trend in the market” since “it is perceived to be made with high-quality ingredients and has a better taste”. For instance, in November 2020, Craft Irish Whiskey Co. launched a new limited-edition Irish whiskey called The Taoscán Irish Whiskey. According to the report, the demand for craft whiskey is high in developed countries such as the US and Germany, plus new distilleries are also being launched across EMEA and the Americas, growing demand for craft whiskey and being used to support the growth of the Irish whiskey category.