The American Whiskey Market is expected to grow at a CAGR of 9.9% from 2019 to reach $16.8 billion by 2025. Over the last ten years, bourbon has seen a rapid rise in popularity around the world. International adult consumers are exploring more expensive U.S. spirits driven by their fascination with American whiskey’s heritage, as well as its mixability and versatility in cocktails. Growing demand for premium American whiskies and rising number of super-premium and ultra-premium brands, rapid urbanization across the globe, and fast growing cocktail market are the key factors driving the growth of American whiskey market across the globe.
Growing demand for premium whiskies from the millennial population with the introduction of new flavors
The demand for American whiskies – Bourbon, Tennessee, and Rye is growing significantly in the U.S. and abroad. The consumers are becoming more knowledgeable and their thrust to explore a different variety of premium whiskies is driving the demand for American whiskey. Moreover, consumer tastes for premium American spirits and favorable exchange rates are also supporting the global sales of American whiskies. Super-premium whiskies are particularly popular with American consumers, with luxury Bourbon and Tennessee whiskies recording double-digit growth in the past few years. Millennials of legal drinking age are the major drivers for innovation and premiumization. This further aids in the revenue growth of American whiskey manufacturers. Several American whiskey bottlers are working at 100% capacity to meet the demand for American whiskies in the U.S. and other foreign nations. With growing demand, the producers are focusing to expand their production capacity and it is estimated that approximately $1.2 billion would be invested in the expansion of these projects in the next two years.
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Marketing strategy & promotions and new product launches are the emerging trends positively supporting the market growth
The companies are coming up with innovative ideas to promote their products and tackle competition in the market by positioning their products with better brand recognition, brand provenance, quality of product and packaging. The companies are boosting their sales by adopting new marketing strategies and doing campaigns to increase awareness about their products in the market. In 2017, Jack Daniel’s launched its new charcoal mellowed Tennessee rye whiskey and produced a new seasonal blend of apple cider liqueur, spices and Jack Daniel's Old No. 7 Tennessee Whiskey.
Brown-Forman, one of the leading players in the market, adopted the strategy of educating the bar staff and consumers about the American whiskey segment. In the U.K., the company launched a campaign "Welcome to the World of American Whiskey: The Story of Man and Oak" in 2015. The company is focusing on maximizing the sales of American whiskey by balancing styles and flavors. Also, Brown-Forman introduced three new flavor code profiles: laid back and mellow, full and spicy, and big and bold to attract more consumers for American whiskey.
Jim Beam also uses innovative marketing approach by executing a three-dimensional (3D) sound program for on-premise sampling and trial in the U.S. This interactive experience makes use of audio content, which provides consumers the unique experience of making and enjoying the new Jim Beam Apple and Soda cocktail through the depth and dimensional effects. To strengthen their consumer base and meet the growing demands of the market, the companies are boosting their product offerings by launching new products.
Asia-Pacific: The Fastest-growing regional market
North America commanded the largest share of the global American whiskey market, followed by Europe, Asia, Latin America, and Middle East & Africa. However, the Asia Pacific region is expected to grow at the fastest CAGR during the forecast period, primarily due to the growing demand for premium Japanese barrel-aged whiskey, favorable trade policies, and rising demand for the highball, a mix of whiskey and soda served over ice. Increasing consumption in developing countries like India and Australia is further supporting the growth of this market in this region.
American Whiskey Market Key Players:
The report includes a competitive landscape based on extensive assessment of the key strategic developments adopted by leading market participants in the industry over the past 4 years. The key players profiled in the global American whiskey market are Brown-Forman Corporation, Beam Suntory, Inc., Diageo PLC, Davide Campari-Milano S.p.A., Heaven Hill Brands, Sazerac Company, Inc., Kirin Holdings Company Limited, Castle Brands Inc., Tuthilltown Spirits, and Luxco, Inc. among others.
Scope of American Whiskey Market Report:
Market by Type
- Bourbon Whiskey
- Tennessee Whiskey
- Rye Whiskey
Market by Geography
- North America
- Europe
- U.K.
- Germany
- France
- Spain
- Russia
- Poland
- Italy
- Austria
- Netherlands
- Switzerland
- Rest of Europe (RoE)
- Asia-Pacific
- Australia
- Japan
- China
- India
- Rest of Asia
- Latin America
- Brazil
- Argentina
- Chile
- Rest of Latin America
- Middle East & Africa
Key questions answered in American Whiskey Market report:
Bourbon whiskey accounted for the largest share of the global American whiskey market
- What factors are contributing to the huge demand for bourbon whiskey across the globe?
- How does the adoption of bourbon whiskey differ from other whiskey types?
The Asia-Pacific American whiskey market favors both larger and local manufacturers that compete in multiple segments
- What are the top competitors in this market and what strategies do they employ to gain shares?
- What factors are driving the growth and which market segments have the most potential for revenue expansion over the forecast period?
- What strategies should new companies look to enter this market use to compete effectively?
- What are the major drivers, challenges, and trends, in the global American whiskey market?
- Who are the major players in various countries and what share of the market do they hold?
- What are the geographical trends and high growth regions/countries?
