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Global Scotch Whisky Category Poised for Strong Recovery


News provided by

just-drinks and The IWSR

07 Feb, 2017, 08:00 GMT

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LONDON, February 7, 2017 /PRNewswire/ --

The "remarkably resilient" Scotch whisky category is poised to stage a strong recovery over the next few years, buoyed by a resurgent blends market and continued growth for single malts.

According to the latest joint Global Scotch Whisky Insights report from just-drinks and the IWSR, the past few years of category decline will be forgotten as blends break through the 90m-case barrier by 2020.

This expansion will be driven by explosive growth in markets including Mexico, India, travel retail and, especially, Poland - where blended Scotch volumes are set to double by 2021.

Meanwhile, single malts will continue their march, with impressive growth set to persist throughout the forecast period, particularly in the US, Canada, Japan, China and India. Only constraints on supply will offer any barrier to their success.

However, some mature blended Scotch markets, including the UK and France, the biggest of them all, will remain stubbornly static - and concerns remain that the competition from other spirits categories is increasingly fierce.

"Scotch is beginning to lose ground to its rivals, thanks to a number of factors, including generational trends and a failure to connect with the new generation of Millennial consumers," the report says.

The much-vaunted 'premiumisation' trend continues to drive success in many markets, but another consumer driver is increasingly important to Scotch: so-called 'mainstreamisation'.

As consumers battle difficult economic conditions and look for better value for money, some are trading down from premium brands to less expensive products; meanwhile, in developing markets, people are increasingly trading up from cheap local spirits to mainstream - largely standard and value - Scotch brands.

Much of the innovation in terms of new product development is coming from single malt Scotch these days, but blends are beginning to make inroads here, including innovations such as Johnnie Walker Blender's Batch.

And the report expects the category to make greater use of its inherent diversity in the years to come, as producers develop more blended malt and grain whisky products alongside traditional blends and single malts.

Global Scotch Whisky Insights - market forecasts, product innovation and consumer trends, published in February 2017 can be purchased via the just-drinks research store.

About just-drinks.com 

just-drinks.com is the online news, insight and research portal for the global drinks industry. Our editorial team includes contributors from around the world, while our commentators comprise experts in their respective fields of beer, bottled water, soft drinks, spirits (both brown and white) and wine. Under the direction of managing editor Olly Wehring, we offer an impartial voice and are driven by our passion for the drinks industry.

About The IWSR 

The IWSR is the leading source of data and analysis on the alcoholic beverage market. The IWSR's database, essential to the industry, quantifies the global market of wine, spirits, beer and RTDs by volume and value, and provides insight into short- and long-term trends. IWSR statistics are used by all of the largest multinational wine and spirits companies, as well as many more local companies. The IWSR's unique methodology allows them to get closer to what is actually consumed and better understand how markets work. The IWSR conducts face-to- face interviews with 1,500 companies in 118 countries each year, with further input from 350 companies. The IWSR tracks overall consumption and trends at brand, quality and category level.

For further information and images please contact James Lawley, Public Relations at Aroq Limited on +44 (0)1527 573 606, email james.lawley@aroq.com

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