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| Irish Whiskey Market |
The Irish whiskey market is anticipated to witness high growth owing to increasing craft culture movement and growing demand for premium spirits. Irish whiskey is a whiskey produced in Ireland from a fermented mash of cereal grains that has been distilled and then aged in wooden casks. The two main ingredients used in Irish whiskey are malted barley and corn (maize). Irish whiskey is distilled at a high proof spirit, then aged in oak barrels for a minimum of three years, giving it a smoother and sweeter taste profile than scotch. Irish whiskey is mainly enjoyed on the rocks or with ginger ale.
Irish whiskey market is estimated to
be valued at US$ 5.42 Mn in 2024 and
is expected to exhibit a CAGR of 7.0%
over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the Irish whiskey market are BMW AG, AUDI AG, Intel
Corporation, Tesla Inc, Uber Technologies, Volvo Car Corporation, Honda Motors,
Ford Motor Company, NVIDIA Corporation, Tencent, Microsoft. The major key
players are focusing on expanding their presence across various regions through
mergers and acquisitions. For instance, in 2022, Diageo acquired Napa Valley's
Ghirardelli Chocolate Company to expand its portfolio of luxury spirits brands.
The Irish
Whiskey Market Demand provides various growth opportunities such as new
premiumization and diversification of products. Players are launching
innovative premium products with immersive experiencesto target affluent
consumers. Additionally, growing demand for authentic and heritage drinks from
millennials and Gen Zconsumers present opportunities for craft Irish whiskeys.
Global expansion remains a key growth strategy adopted by the major players.
Players are expanding to high potential markets such as the Asia Pacific,
Africa and South America to leverage new consumer base and strengthen global
footprint. For instance, in 2021, Pernod Ricard acquired FireIrish Whiskey to
expand its presence and capture surging whiskey and premium spirits demand in
South Africa and neighboring markets.
Market drivers: Rising disposable income levels and growing affinity of
millennials towards premium drinks are majorly fueling the demand for premium
and craft Irish whiskeys globally. Additionally, growth of experiential culture
and whiskey tourism isaugmenting the market growth.
Market restraints: Stringent regulations pertaining to labeling and advertising
of alcoholic beverages limit the scope of innovation. Additionally, rising
health awareness and preference for low-alcohol content drinks may hamper the
market growth.
Segment Analysis
The Irish whiskey market is dominated by premium and luxury segments. The
premium and luxury segments account for over 50% of the total Irish whiskey
market share. This is because premium and luxury whiskeys are perceived to be
of high quality with finer taste and flavors compared to standard whiskeys. The
perceptions of luxury, high quality and premium experiences associated with
premium and luxury Irish whiskeys drive their dominance in the market. Bottles
of premium and luxury Irish whiskeys are also considered as CPG and used in
gifting as well as for personal consumption. This furthers increases their
demand and market share within the overall Irish whiskey market.
Global Analysis
North America region represents the largest and fastest growing regional market
for Irish whiskey. The high consumption and popularity of whiskey along with
strong heritage, cultural and economic ties between Ireland and North America drive
the dominance of North American regional market. Asia Pacific follows North
America in terms of market size. Countries like China, India and Japan
represent high growth opportunities. Rising disposable incomes, growing culture
of western drinking and change in perceptions are fueling demand for Irish
whiskey in Asia Pacific region. New whiskey drinkers, cultural shifts and
economic development trends point towards continued strong growth of Asia
Pacific region in the long run.
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Whiskey Market
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