The resurgence of bourbon in the last 15 to 20 years has been a pleasant surprise for many, including industry veterans. From Forbes to Liquor.com, experts foresaw and witnessed the growing demand and excitement for whiskey and bourbon.
Now, aspiring entrepreneurs and investors who are eager to seize the opportunity are actively seeking to establish a strong presence in this thriving industry.
The exciting news is that bourbon's popularity is on the rise for a good reason, and the demand is expected to keep growing, not just in the United States, but globally as well.
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Within a decade of Prohibition coming to an end, the bourbon industry experienced incredible growth and success. That is, until the early 1970s.
The 1970s saw a surge in popularity for lighter spirits such as beer, gin, cheap wine, tequila, and vodka, with vodka sales surpassing those of bourbon and whiskey by 1973. Despite the emergence of single-malt Scotches in the 1980s, the American bourbon industry remained relatively stagnant until the 21st century.
In response, many alcoholic beverage conglomerates strategically expanded their portfolios to meet consumer demands. Rather than solely focusing on bourbon, some diversified their offerings to include a range of spirits, from rum and bourbon to tequila and vodka.
Meanwhile, the glass was half-full in foreign countries like Japan. Previously unknown to the Japanese, bourbon – once introduced – quickly became a coveted commodity. What’s more, the Japanese wanted well-aged, high-proof bourbon in a premium package. By 1990, an annual import of 2 million bourbon cases was flowing into the country.
By the early 2000s, the Japanese consumer had proven that Americans might, in fact, be a promising target market for a high-quality bourbon product as well. Believe it or not, American tourists had traveled to Japan to purchase the quality bourbon stock!
And Americans’ tastes had, as it turns out, been refined. From 2009 to 2014, Kentucky bourbon not only scored its highest revenue in decades but also reached $1 billion in sales for the first time.
This was a direct result of combined bourbon sales in America and in foreign markets, thanks to new trade agreements. Flavored whiskeys – such as cinnamon, vanilla, and apple – and creative, ready-to-drink cocktails were new innovations that contributed to millennials’ interests in the drink.
Millennials are just one of the many demographics enjoying bourbon as their newest adult beverage choice. Beverage brands have realized the benefits of investing in these young and upcoming consumers. While millennials are the primary buyers, purchasing 52% of the product, Gen X is following close behind at 37%.
Similarly, whiskey is no longer the stereotypical drink of middle-aged American men. Women love it, too. A study by Heaven Hill – a distillery in Bardstown, Kentucky – found that more than 30% of bourbon drinkers are women. This follows a 50% increase in women drinking bourbon between 2011 and 2014.
Additionally, the "American spirit" has made its way into international markets. Today, some of the top buyers come from countries like Japan, Spain, Canada, and Australia.
The evolving narrative – intricately intertwined with its storied past – of American bourbon remains a key aspect of its resurgence. It has become evident over time that consumers have a keen interest in more than just the beverage itself. They value the brand, the distillers behind it, the aging process, and the distillation methods.
For bourbon enthusiasts and bourbon business owners alike, bourbon is not just a drink, but a lifestyle. Experts in the industry foresee bourbon continuing to be a sought-after product and a valuable investment for the foreseeable future.
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