The global Irish whiskey market size was valued at USD 5,326.32 million in 2022 and is valued at USD 5,887.09 million in 2023. It is projected to reach USD 11,670.34 million by 2031, registering a CAGR of 9.4% during the forecast period (20232-2031). In developing countries, customer spending on Irish whiskey and other alcoholic beverages is expanding. This can be due to increasing disposable income, acceptance, and favorable attitudes toward alcoholic beverages. Furthermore, due to consumer preferences for a unique taste, flavor, and superior quality whiskey, demand for premium Irish whiskey is predicted to rise in these countries. As a result, manufacturers are focusing on novel concepts to fulfill the needs of consumers. The innovative ideas include more carbon content in drinks, craft alcoholic beverages, packaging, and flavors. Furthermore, an increase in the number of millennials across the globe also contributes to the growth of the market, owing to the rise in the involvement of millennials in bars, pubs, clubs, and alcohol-led tourism. Furthermore, the emergence of E-commerce platforms in the Irish whiskey market has led to the growth of online shopping platforms.
Irish whiskey's renown has increased worldwide. Its mellow and approachable flavor profile appeals to a wide variety of consumers, resulting in increased domestic and international sales. Moreover, numerous Irish whiskey manufacturers have invested in expanding their production capacities and enhancing their facilities.
Irish whiskey is considered one of the best alcoholic beverages in the world. It's manufactured from malted and unmalted barley and distilled for around three years. It goes through a fermentation process during distillation, where extra enzymes aid in the processing and conversion to alcohol. It is then distilled three times for a richer flavor and smoother texture. Because it is softer than other whiskeys, Irish whiskey is noted for blending well with other beverages. In addition, Irish whiskey is ideal for creating cocktails and shooter recipes. Due to variables such as increased disposable income, bar etiquette, and spirits-led tourism, it is trendy in countries such as the United States, the United Kingdom, France, and Germany.
|Market Size||USD 11,670.34 million by 2031|
|Fastest Growing Market||Europe|
|Largest Market||North America|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, Environment & Regulatory Landscape and Trends|
Nowadays, social media and other online platforms are trending. These platforms connect with the audience quickly and efficiently. Consequently, in the alcoholic beverages market, the influencers, through social media pages, come out with new innovative trends and ideas. Creative ideas in producing juices, ice creams, snacks, cocktails, and other items with alcoholic beverages, including Irish whiskey. The innovative ideas such as the Irish whiskey's smooth texture, aroma, and fruity flavor drive the market growth. The audience of these influencers develops the entail perceptions and accessibility towards alcoholic beverages.
Furthermore, by observing the social media influencer, the customers are interested in alcoholic beverages. In addition, the appeal of customers toward experimentation and innovation of drinks is developing through the influences. This contributes to the growth in alcoholic beverages. Furthermore, the customer has developed tastes and preferences with the growing trends on online platforms. The ever-increasing trends include innovation, disposable income, alcohol-led tourism, and party culture. As a result, the customers are developing the acceptability of alcoholic beverages, which increases customers' engagement in bars, pubs, and restaurants. Also, in bars and pubs, the cocktails and other mixtures attract the customer toward alcoholic beverages consumption.
In modern market trends, the packaging of the product is not only limited to wrapping the product in a case or shelf but also to attracting the customer by highlighting the features and uniqueness of the product. The packaging differentiates the product from the competitors. Comparably, in alcoholic beverages, the bottles are designed so that customers get attracted to the packaging. As a result, the customer identifies the product quickly and buys it. Players in the Irish whiskey market trends used to come up with innovative packaging and unique designs of bottles. This is to represent the product as a premium drink. Furthermore, the manufacturers launched a limited edition of the product, whose packaging differs from the regular bottles. Even during special occasions and festivals, the manufacturers launch the products in a gift pack and the presentable form to allure the customer. This is expected to boost the growth of the market.
Brexit is the withdrawal of the UK from membership in the European Union. This affected the trades, economies, customs, services, medical, corporates, and other aspects. In addition, it is expected to affect the distilling communities that contribute to alcoholic beverages production, including Irish whiskey. Brexit will affect not only the UK market but also the trades in the whole of Europe. The manufacturers of Irish whiskey and other alcoholic beverages will face difficulties in trading the products, including importing and exporting alcoholic drinks from the UK.
The existing policies and rules in trade will be discontinued, and new will be implemented in the UK. Consequently, some manufacturers temporarily avoid business in the UK due to Brexit. As the change in policies and rules affects the taxation pattern, it will affect the price of drinks. The business of local manufacturers in the UK will also get affected due to the changing policies. Brexit will be one of the primary reasons that is anticipated to restrain the growth of the Irish whiskey market.
E-Commerce plays a vital role in developing Irish whiskey and other alcoholic beverages. With the growing technological environment, modernization, and awareness, the customer has become a smart buyer. The customers know how to choose the right product to fulfill their requirement. Consequently, the customer is finding E-Commerce platforms an ideal and comfortable way of shopping as the online platforms have various alcoholic beverages. Also, this is because the customer does not prefer to go outside and invest time in shopping in a busy schedule. The E-Commerce platforms are observing this rising trend of alcoholic beverages in the market. As a result, the E-Commerce platforms are upgrading their sites to make them user-friendly and easily accessible.
Also, the E-Commerce platforms provide various offers and discounts to hold the customer's interest in frequent buying. During the COVID-19 lockdown, the customer found E-Commerce's safest shopping means. In addition, while purchasing alcoholic beverages, the customer finds it easier to compare two or more drinks based on quality and price.
Region-wise, the global irish whiskey market share is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
North America was the highest revenue contributor and is estimated to grow at a CAGR of 9.8% during the forecast period. The potential growth of the Irish whiskey market is expected in North America owing to the development of the young adult population and prosperous economy. Furthermore, high disposable income, high standard of living, and demographic growth fuel the market growth in this region. In addition, the rise in demand for innovative products, such as the amount of carbon content and alcoholic content in the drink and cocktails, as well as the increase in the number of clubs, bars, restaurants, pubs, and sports clubs, boost the growth of the market in North America.
Europe is the second-largest market of Irish whiskey and other alcoholic beverages across the globe. The Europe Irish whisky market is projected to reach USD 3712 million by 2031, growing at a CAGR of 8.2%. Europe has potential countries such as Germany, the UK, France, Italy, and Spain, where the demand for Irish whiskey and other alcoholic beverages is high. Economically in the European market, the customer's disposable income and purchasing power are high, contributing to the increase in demand for premium products. This becomes the major driving factor for the manufacturers. Significant players of Irish whiskey such as Teeling, Jameson, Bushmills, and Redbreast are taking advantage of this opportunity as these brands mainly produce premium alcoholic beverages. Europe is a mature and significant region in the alcoholic beverages market. In Europe, the demand for premium, high-quality products and innovation in alcoholic beverages are preferred.
Furthermore, the innovation in alcoholic beverages includes design, packaging, taste, and organic content. As a result, the players in the Europe market focus on alcoholic beverages of premium quality and new features like organic, vegan drinks. Furthermore, in Germany, there is a festival known as Oktoberfest. The locals and customers from abroad visit this fest, which drives the consumption of alcoholic beverages and Irish whiskey in Europe.
Asia-Pacific is one of the critical markets for alcoholic beverages, including Irish whiskey. In Asia-Pacific alcoholic beverages market is driven by growth factors such as modernization, adult population, disposable income, and premium products. Asia-Pacific has a highly diversified consumption of Irish whiskey and other alcoholic beverages due to varied tastes and preferences. With the change in lifestyle and increase in the standard of living, the tendency toward innovation related to taste, packaging, and clean labels is increasing in Asia-Pacific. Furthermore, an increase in mergers and acquisitions drives the market growth.
The Irish whiskey market share is segmented based on type, price, sales channel, and region.
Based on type, the global irish whiskey market growth is divided into blended Irish whiskey, single malt Irish whiskey, single-pot Irish whiskey, and single grain Irish whiskey. The single malt segment was the highest contributor to the market and is estimated to grow at a CAGR of 9.2% during the forecast period. The key trend in single malt whiskey is its unique flavor and taste. The taste and smell vary from manufacturer to manufacturer of single malt whiskey. This is because, in the production of single malt whiskey, the distillation and processing differ from manufacturer to manufacturer. Furthermore, the single malt Irish whiskey is one of the premium alcoholic beverages with superior quality. This premium quality attracts the customer to consume single malt whiskey, thereby driving the growth of the segment.
The blended segment is the fastest-growing segment. The customers prefer blended Irish whiskey as it is available in large varieties. The diversity in whiskey flavor is obtained by mixing various grains in various proportions, which drives the growth of this segment.
Single pot Irish whiskey is the third-largest segment. An increase in consumption of single-pot Irish whiskey has been witnessed during the forecast period, owing to its unique taste and texture. The inclusion of oats provides an elegant, creamy texture and spicy flavor to the whiskey. Furthermore, the manufacturers are focusing on maintaining the smoothness, color, creamy texture, and other such standards of the whiskey, which also boosts the market growth.
Based on the price, the irish whiskey market analysis is segregated by mass and premium. The premium segment is the highest contributor to the market growth and is estimated to grow at a CAGR of 9.9% during the forecast period. The rise in consumption of alcoholic beverages by millennials and young adults drives the market's growth. The current trend of drinking culture in corporate events, parties, and others has led to an increase in the consumption of premium whiskey for good taste and texture. Consequently, this contributes to the growth of the premium alcoholic beverages market. Furthermore, the manufacturers are introducing a variety of premium quality whiskey, owing to the rise in demand for innovative, authentic alcoholic beverages among affluent consumers, thereby driving the growth of the segment.
The mass segment is the second largest. The mass market has a significant opportunity for the local or domestic players. This is because alcoholic beverages are heavily taxed at both the import and export levels. As a result of the taxation, the cost of alcoholic beverages rises, making them less inexpensive and accessible. On the contrary, the local or domestic player need not have to pay taxation on the import or export of alcoholic beverages as the production is done within the country's domestic territory. This implies mass pricing, which targets the mass pricing segment of the customer in alcoholic beverages.
Based on the sales channel, the irish whiskey market forecast is divided into on-trade and off-trade. The off-trade segment is the most significant contributor to the market. Also, this segment is expected to be the fastest-growing segment during the forecasted period. The off-trade segment is estimated to grow at a CAGR of 9.7% during the forecast period. Most customers prefer shopping from retail stores owing to quick access to the product.
Furthermore, in the case of queries, an instant answer is given by staff or retailers. The retailer's interaction with staff creates customer loyalty and a sense of belongingness. This motivates customers to frequent buying. These factors fuel the growth of the off-trade segment in the market.
The on-trade segment is the second largest. In developed and developing countries the trend of bars and pubs is increasing; thereby increasing numbers of new outlets. This is expected to boost the growth of the market. In addition, professionals such as the bartender, waiter, and the manager in bars and pubs provide personalized services and experience to the customer, which drive the consumers toward these places frequently, thereby boosting the market growth.
The key players operating in the Irish whiskey market are