Whisky collectors are seeing a sooner than expected return this year in a market trend that doesn’t seem to be slowing down. Things look bright for distilleries, consumers and collectors, but this might just be the beginning.
The whisky market performance during 2021 showed an increase in Scotch exports despite the global Covid-19 pandemic, in some cases 31% higher than the same period in the troubling 2020. The rare whisky market set a record on the secondary market, with an estimated value of over £36 million.
The whisky market is closing the year strong, once again over-performing gold, this time by 0.03% in the same period, but there’s still room for growth. Cascading demand for rare whisky is starting to benefit more than the traditional “blue chip” distilleries, uncovering investment opportunities with massive growth potential, a phenomenon that has been brewing for a few years now.
Explosive growth could be one way to describe the current whisky market, but this is no bubble. The aged stocks sitting in the cellars keep on getting better and scarcer, making whiskies’ value rise along with its price. Read on and learn more about today’s whisky market performance and an educated guess about its performance entering 2022.
Although most of the major whisky distilleries are making bold moves all across the board, we can underline a few major events that will impact the whisky market in upcoming months and years.
This year, the Highland Council received an application by The Midfearn Distillery Company Ltd to build a new facility on the Midfearn Estate at Easter Fearn. The historical site might just have been where the whisky was first produced two centuries ago. This is just one of several distillery projects coming back to life, adding to the lore behind the “ghost distilleries” whisky collectors cherish so passionately.
We’re about to witness yet another historic moment for the whisky market with the auctioning of the world’s oldest single malt. Gordon and MacPhail is releasing 250 beautiful decanters filled with 80-year-old whisky and donating the profits to help recover Scotland’s oak forests. This is one of many exciting auctions planned for 2022.
Diageo continues its plans to reopen the long-lost Port Ellen Distillery. Initially announced for 2020, the Covid-19 crisis has caused some setbacks, but there’s a good chance we’ll see the doors of the historical distillery open soon. The revival of “silent distilleries” fuels renewed interest in the rare whisky market, bringing history buffs and lovers of classic malts on board.
This year we saw the Chinese whisky market soar to unforeseen sights with an unsatisfiable thirst, representing a tenfold increase in the last ten years. With the Chinese middle class on the rise, and a steady increase in disposable income, whisky has finally found its way to the people and not only the Chinese elite. The Asian country’s solid growth will support whisky’s demand and price increase, especially for rare whisky.
Whisky’s “V-shaped” market recovery pushed the charts to a new price discovery range over the £426.58 per bottle price, and that’s just the beginning. The whisky market is not slowing down, and prices will most probably continue to rise in the next several years.
The Scottish whisky market is projected to grow 5.3% by 2027. The increased demographic interest in the brown spirit; the rise of independent bottlers; the accelerated development of the ultra-premium sector; and whisky’s wider global reach will only increase the demand for the rare spirit. These factors are keeping the prices at a steady bull run looking to continue in the following decades.
The Japanese whisky market alone will be up 28% in 2022 for blended whisky and single malts alike. The pastures are still green for bargain hunters and astute collectors, but the prices are going nowhere but up in 2022.
There’s no doubt the whisky market will continue to capture the interest of whisky lovers worldwide. With increased demand, whisky as an investment will still be a viable opportunity for anyone looking to diversify their portfolio, hedge against inflation and preserve value.
The prominent market players find new ways to satisfy their ever-growing fan bases and their demanding palates with new and exciting malts. Independent bottlers are fresh, interesting opportunities that cater to a younger crowd. An entirely new generation joins the whisky trade this year, injecting life into an already vibrant market. 2022 will be an impressive year for the whisky trade, from the distilleries to the consumers.
If you’re still not on board the whisky train, you’re still on time. We’re all still early, and you can’t say the same thing about most other markets. Whisky might be timeless, honorable and deep-rooted in tradition, but it’s also the future, especially as a way of preserving value and hedging against inflation. We’re living a golden age for investment diversification, and the whisky market is proof of it. For the first time, you get to invest in what you genuinely love.
Don’t worry our core values and mission remain the same, we are also growing more rapidly than ever and have opened a new office in Scotland!
We cannot wait to share with you some new and exciting projects we have been working on in the the new year.
Next year we will be launching our green campaign, and for each cask purchased we will be planting a tree, our forest will be available to see on our new website which will also be launching next year.
It has been an honour & pleasure working with you this year. We wish you the best of the
holidays and hope 2022 brings you and your family great happiness & health.
Some exciting news for the whisky world, Scotland’s deepest container terminal at Clydeport welcomed its first cargo ship, the Allseas Pioneer, last week, carrying textiles, furniture,
Macallan releases an 84-year-old whisky for its 200th anniversary. The TIME : SPACE collection pairs a 1940 vintage with a 2018 malt. Priced at £190,000,
Drinks giant Diageo has announced impressive profits for the past year, driven by elevated prices and global consumers opting for more luxurious beverages. The producer
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² Tax Information provided without warranty. Tax treatment is subject to HMRC guidelines – we recommend that you get your own expert tax advice for your specific situation.
As with all collections, previous performance is no guarantee of future performance.
Our website offers information about whisky cask collecting, but not personal financial advice. If you’re not sure which casks are right for you, please request advice, for example from a financial advisor. If you decide to buy whisky with Elite Whisky and Wine. Remember that whisky cask prices can go up and down in value, so you could get back less than you put in.
