The whiskey industry is no stranger to shifts, but 2024 has proven to be a particularly dynamic year, marked by evolving consumer behavior, market trends, and macroeconomic challenges. While the premium sector, known as “status spirits,” continues its upward trajectory, the broader landscape is one of adaptation.
Let’s explore the latest insights from the IWSR Status Spirits Report and Mark Brown's Industry News Updates, two of the Brindiamo team's favorite resources for staying current on market trends and challenges.
Status spirits—those with a retail price of $100 or more—grew by 9% in 2023, driven by demand from affluent consumers. Despite global economic pressures, status spirits now account for 4.8% of the total spirits market. According to IWSR’s report, these high-end products have demonstrated resilience, particularly among consumers less affected by inflation.
One standout performer has been Scotch, which led the way in the premium spirits category, growing by 17%. Grain and blended Scotch, in particular, were crucial to this growth. IWSR forecasts continued success for both malt/grain Scotch (+5% CAGR) and blended Scotch (+10% CAGR) through 2028, indicating that Scotch remains a cornerstone of the status spirits sector. For whiskey investors like Prospero, this offers a prime opportunity to build Scotch holdings, starting with grain and blended malt, which delivers both immediate returns and long-term growth potential.
Despite the success of premium whiskey, the global retail landscape faced some turbulence in 2024. Consumers have become more cautious with their spending due to rising interest rates and higher living costs, resulting in a slight dip in retail sales in September. However, while the overall market has softened, the luxury whiskey segment continues to grow, particularly in the $5,000+ category, which posted a remarkable 39% growth in value in 2023
Another key opportunity lies in emerging markets. India, with its burgeoning middle class, is rapidly becoming a significant market for status spirits. While high tariffs have historically limited Scotch’s growth in India, the ongoing negotiations for a Free Trade Agreement (FTA) between the UK and India could open up substantial opportunities. Scotch is already hugely popular in India, and a reduction in tariffs could unlock a new wave of growth
American whiskey, particularly bourbon and rye, has seen steady growth, driven by consumer demand for premium and innovative products. With a CAGR of 17% from 2019 to 2023, American whiskey is poised to outpace even tequila in terms of value growth over the next five years. Brands are increasingly experimenting with barrel finishes and limited-edition releases to keep consumers engaged. For example, collaborations like High West's whiskey finished in wine barrels exemplify this trend toward innovation.
In the U.S., whiskey remains a staple of premium spirits, with bourbon and rye leading the way. The Four Roses 135th Anniversary release and other unique bottlings have shown that American whiskey continues to capture the imagination of both collectors and casual consumers. This steady growth reflects a broader trend of consumers prioritizing premium quality despite economic pressures
One of the bright spots in 2023 was the resurgence of duty-free sales, which grew by 48%, driven by a return to travel post-pandemic. This sector now leads in value for status spirits, helping offset weaker domestic markets in countries like China, where new tariffs and weakened consumer confidence have slowed growth
Meanwhile, emerging markets such as Vietnam and Nigeria are showing strong demand for premium whiskey, offering significant growth potential. Scotch, in particular, is expected to benefit from these markets, further solidifying its status as a global leader in the premium whiskey category
As we look ahead, the whiskey industry faces a dynamic future where the ability to navigate economic pressures while capitalizing on the demand for premium products will be key. Scotch remains a central driver of growth in the premium whiskey category, with significant opportunities in emerging markets like India, where potential tariff reductions could open new doors. Meanwhile, American whiskey continues to gain momentum, driven by innovation and strong consumer interest in premium offerings.
At Brindiamo, we are excited to expand our role as a full-service whiskey partner, deeply integrated into the global whiskey landscape. With expertise spanning barrel storage, cooperage partnerships, and distillery collaborations worldwide, we’re strategically positioned to provide our clients with the best access to whiskey resources, allowing them to thrive in a competitive market.
But our commitment doesn’t end there. We partner with brands of all sizes, helping them navigate key trends, seize opportunities, and carve out their own space in the global whiskey market. Whether it’s guiding them through the burgeoning Indian market or supporting innovation in American whiskey, Brindiamo is dedicated to fostering growth and success for our partners.
As the industry evolves, balancing tradition with innovation will be the key to success. Whether expanding Scotch portfolios or exploring new markets, the future of whiskey is full of exciting possibilities. Brindiamo is proud to lead the way from wood to glass, ensuring our clients not only keep pace but set the standard for the next era of whiskey.