Single malt whiskey market expected to surpass 234 million liters by 2020
The global single malt whiskey market was valued at about 169 million litres in 2015 and is expected to surpass 234 million litres by 2020, says Technavio (technavio.com).
Technavio has announced its latest market research report on global single malt whiskey market to its alcoholic beverages portfolio. This market analysis discusses the major drivers and key emerging trends that will influence the growth of the global single malt whiskey market during the forecast period 2016-2020.
In terms of geographical analysis, Europe will be the largest region in the global market, reaching revenues of more than $1 billion by 2020. Scotland, the UK, and Germany will emerge as the key revenue-generators.
“The emergence of tourism based on whiskey distilleries will lead to the growth of the single malt whiskey market. One of the main tourist attractions in Scotland is visiting distilleries and top 20 distilleries in the region account for about 83% of the total visits to the sector. The tour of the distillery helps the consumers understand and experience the distillation process of single malt whiskey,” says Manjunath J, a lead analyst at Technavio for research on alcoholic beverages.
The new industry research report from Technavio analyzes some of the key drivers and trends responsible for the growth of this market and its sub-segments.
Rise in demand for premium single malt whiskey
The global single malt whiskey market is witnessing an increased demand for premium single malt whiskey across the globe, especially in the U.K. and the U.S. The price of single malt whiskey goes up as the age of whiskey increases. The increase in the number of high net worth individuals globally is raising the demand for these premium products. Some of the premium single malt whiskey are Balblair Highland Single Malt Scotch Whiskey 1999 and Suntory Yamazaki Distiller’s Reserve Single Malt Whiskey.
Increase in export and import
The increase in exports and imports globally across various whiskey-consuming countries is helping the sales of single malt whiskeys. For instance, in 2015 the U.K. exported single malt Scotch whiskey valued at around $621 million and Canada imported products valued at about $55 million. The growing popularity of the premium product in the European market is expected to increase the import activities in the region. Emerging nations like Mexico, Poland, Turkey and India are also participating in import and export activities to increase their revenues.
New product launches
Shorter product life cycle and new entrants in the market are prompting players to launch new products to sustain the competition and to satisfy the increasing consumer needs. Many vendors are venturing into collaborations and partnerships to launch new products. For instance, Puni Distillery recently launched two single malt whiskies under the brand names Puni Nova and Puni Alba. The company is marketing these products as Italy's first single malt whiskey.
Increasing mergers and acquisitions
Established companies are acquiring smaller ones to gain entry into new markets and to offer new and innovative products. Vendors are forming strategic mergers to gain access to new technologies and increase their consumer base. In recent times, an Australian Entrepreneur David Prior acquired Bladnoch Distillery based in Scotland to increase production of single malt whiskey.