Scotch has international acclaim and fans worldwide. And although the market growth weakened during the Covid crisis, as low as 23%, a phenomenon shared with all markets, Scotch has a brilliant future ahead, and it’s thanks to the thirsty Chinese market.
The Scotch Whisky Association (SWA) stated that some of the most important Scotch markets experienced a decline in imports because of commercial restrictions caused by the global pandemic. Spain, Japan, Germany, Singapore and the US saw the biggest declines. On the other hand, emerging Scotch markets, mainly China, made strong gains, especially for whisky casks and Scotch related investment opportunities.
Scotch, The Most Desired Spirit in China.
China’s Hurun Research Institute’s China reported consumers have embraced premium Scotch brands and are willing to pay a premium for high-quality spirits. The young market already placed whisky as the third most popular spirit in the country.
With a significant national salary increase for China’s rising middle class, the disposable income destined for luxury spirits, including Scotch, is twenty times as substantial as the early 2000s. By 2025, the Asia-Pacific whisky market will be worth 1.77 billion pounds. This volume makes the United States market value of around 729 million pounds in 2019 look small.
Scotch, An Ambassador for Western Culture.
The stereotype perpetuated around whisky drinkers has expired. It’s no longer the ‘Boomer’ generation of drinkers born between 1946 and 1964, representing the most significant share in the whisky market, but the ‘Gen-X’ and ‘Millennial’ generations. They now have the most impact on the premium spirit sector.
This is true for the Chinese market, as the young crowd relates itself to the Western lifestyle. Whisky is an extraordinary ambassador for Western culture, and it’s also a very Western opportunity to diversify the young Chinese professionals’ portfolio.
Chinese Investors Looking for Ways to Diversify Their Holdings.
Those who will benefit the most from China’s sudden thirst for premium Scotch are the multinational beverage alcohol companies, sparing no expense in positioning themselves in the young market, and private collectors invested in the fine and rare cask market.
The Scotch cask market has proved to have immense stability, even during the current global crisis, and has held its value over most traditional investment opportunities. With increasing wealth across all tiers of Chinese society, money will undoubtedly flow into the Scotch trade, skyrocketing capital gains in the near future to unforeseen heights.
Although there’s no way of projecting the real impact of the Chinese influence on the Scotch cask market, there’s no doubt it will stir the sector’s already outstanding growth.
How to Be Part of the Great Chinese Migration into Scotch?
There’s not enough premium Scotch for everyone, and the rarest casks will only increase in value. The market might soon become too competitive and experience explosive growth, which might drive the prices up. It’s still early, though.
Although Chinese Scotch enthusiasts are growing in numbers, those in the know are still few. Whether you’re looking to diversify your holdings or are a Scotch fanatic and don’t want to miss out on the whisky revolution to come, today is a great moment to get your hands on a few unique casks and bottles.
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