EW&W are here to provide you with the most up-to-date information and insights about the whisky market. In this newsletter, we’ll be covering the latest market trends and developments in the whisky industry, with a focus on whisky casks. So, without further ado, let’s dive into the latest whisky market update.
Current Whisky Market Climate
The global whisky market has been steadily growing over the past few years, and this trend is expected to continue in the coming years. According to a report by ResearchAndMarkets.com, the global whisky market was valued at $56.7 billion in 2020 and is projected to reach $87.8 billion by 2026, growing at a CAGR of 7.5% during the forecast period.
One of the driving factors behind this growth is the increasing popularity of whisky among younger consumers, especially in emerging markets such as China and India. In fact, India is currently the world’s largest consumer of whisky, accounting for more than half of the global consumption. Meanwhile, the demand for premium and super-premium whiskies continues to rise in developed markets like the US and Europe, as consumers seek out unique and high-quality products.
News Within the Whisky Market
The whisky market has been buzzing with news in recent months, with several major developments taking place in the industry. One of the biggest stories has been the rise of non-traditional whisky markets, such as Asia and Africa. In particular, China and India have emerged as key markets for whisky, with both countries experiencing significant growth in demand for premium and super-premium whiskies.
Another major development in the industry has been the rise of sustainable and eco-friendly whisky production. Many distilleries are now focusing on reducing their environmental impact and using renewable energy sources in their production processes. This shift towards sustainability has been driven by growing consumer demand for environmentally conscious products and the need to address the urgent issue of climate change.
New legislations and Trade talks within the Whisky industry
The implementation of new legislations and trade talks within the whisky market can bring a variety of benefits to the industry. For example, the UK-India trade deal, which was recently agreed upon, will provide a significant boost to the whisky industry by removing tariffs and simplifying trade between the two countries. The UK has also agreed to join a trade bloc of 11 countries, known as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which will provide new opportunities for trade and investment in the Asia-Pacific region.
In addition, the removal of the 80% tariff on whisky exports to Malaysia, which was agreed upon as part of the CPTPP trade bloc, will provide a major boost to the industry by opening up new opportunities for growth and expansion. This will not only benefit whisky producers, but also consumers, who will have access to a wider variety of high-quality whiskies at more affordable prices.
Overall, the implementation of new legislations and trade talks can help to remove barriers to trade, promote growth and innovation within the industry, and provide new opportunities for both producers and consumers. As an industry leader in whisky cask collecting, EW&W will continue to monitor the market and provide our clients with the latest insights and opportunities as they emerge.
Whisky Cask Collecting
Whisky casks have become increasingly popular among collectors in recent years, and for good reason. Purchasing whisky casks can provide attractive returns over time, as the value of aged whisky continues to rise. According to the Knight Frank Luxury Investment Index, the value of rare whisky has increased by more than 500% over the past decade, outperforming other luxury assets such as fine art, classic cars, and watches.
Rare Whisky Apex 1000 Index
The Rare Whisky Apex 1000 Index tracks the performance of the 1,000 most sought-after bottles of rare whisky in the market. As of August 2022, the index reached its peak showing a steady increase in value. This suggests that rare whisky remains a highly desirable asset for collectors, with significant potential for growth and profit. The Rare Whisky Apex 1000 Index remains an important barometer of the health and potential of the rare whisky market. EW&W recognises the value of rare whisky as part of your portfolio and can provide expert guidance and advice for those looking to build a collection.
Source: Rare Whisky 101
Collecting whisky casks can also provide a hedge against inflation, as the value of whisky tends to rise with inflation. Additionally, whisky casks offer collectors a tangible asset that they can store and track over time.
Whisky Market Outlook for 2023
Looking ahead to the remainder of 2023 and beyond, the whisky market is expected to continue its growth trajectory. One of the key drivers of this growth will be the rising demand for premium and super-premium whiskies, as consumers seek out unique and high-quality products. Additionally, emerging markets such as China and India are expected to drive demand for whisky in the coming years, as their middle class populations grow and their economies continue to expand.
In conclusion, the whisky market continues to be a bright spot in the luxury goods industry, with strong growth expected in the coming years. While there are some risks and challenges facing the industry, the demand for high-quality whisky is expected to remain strong, especially in emerging markets. As always, we will continue to monitor the market and provide our clients with the latest insights and opportunities in the whisky cask collecting space. If you have any questions or would like to learn more about starting your whisky cask collection, please don’t hesitate to contact us.