Millennials' growing thirst for whiskey is likely to lead to a CAGR of 6% for the category between now and 2029, a new study by Fact.MR has found.
According to the report, the whiskey category will also benefit from increased spending from high net worth income individuals over the coming decade, while emerging economies such as India and Indonesia present 'lucrative growth opportunities' for manufacturers.
Driving Sales
Blended whiskey continues to account for the majority of sales, and will grow by around 1.4 times during the forecast period, according to Fact.MR.
This growth can be attributed to 'high availability and consumer consistency in choice of alcoholic beverage', the report states.
Premium whiskey brands, however, will garner increased traction, as perceptions about the price/quality ratio of said products increases. The high-end premium category offers 'lucrative growth opportunities', the report says, with a CAGR of more than 7.5%.
Sales of high-end whiskies are expected to expand rapidly in developing regions of the world, with demand set to grow 1.8 tines in the South Asia and Oceania region.
New Blends
According to the report, manufacturers will need to experiment with new production techniques and whiskey blends in order to meet demand among millennial consumers.
In addition, manufacturers are likely to invest in partnerships with a range of stakeholders, including local distributors, importers and exporters, as they seek to expand their global footprint.
'Finished whiskey in used casks of sherry, run, cognac, wine, and other whiskeys is creating an emerging market for diverse flavours,' the report says.
'The challenge for manufacturers is creating a stable blend which can be produced at scale while at the same time garners consumer traction. The global whiskey market is shifting focus towards developing countries to leverage the growth and development of infrastructure and multiplying number of new consumers.'
Developing 'consumer communities' through the use of digital media channels will catalyse demand and boost revenues, it added.
© 2020 European Supermarket Magazine – your source for the latest retail news. Article by Stephen Wynne-Jones. Click subscribe to sign up to ESM: European Supermarket Magazine.
