American and Irish whiskey casks are on the rise

Whisky has been generating quite a buzz in the alternative investment sphere in recent years. With its excellent return on investment and exemption from capital gains, this highly sought-after alternative asset class continues to see reliable and consistent growth year after year.

 

With the whisky market on a reassuring rise, it’s no wonder more and more investors are jumping on the bandwagon and investing in these luxury-liquid assets.

 

But as with any investment, there are always risks. Markets see ups and downs and unpredictable economic fluctuations, so it’s always best to have your wits about you and do your research before investing your hard-earned cash.

Has the Scotch market become saturated?

When most people think of whisky, they usually think of the Scottish variety. And it’s no surprise, given that the country has been producing the drink since the 15th century, and remains the biggest whisky producer in the world.

 

But while Scotland may have become synonymous with whisky, it isn’t the only country to produce it. Its popularity has meant the Scotch market has become saturated, and with investors searching for alternatives, the landscape is changing dramatically. Irish and American markets are emerging rapidly, with the growth of Irish whiskey in the US market especially strong. According to new figures published by the Distilled Spirits Council, Irish whiskey was the fastest-growing category by revenue in the US last year, rising 16.3 per cent ($185 million) to a staggering record of $1.3 billion. If this trend continues, Irish whiskey is set to overtake Scotch by 2030.

 

The Irish market

 

Perhaps surprisingly, in the 19th century, it was Irish whiskey, not Scotch, that dominated the market, with two-thirds of all whiskey sold in London originating in Ireland and accounting for 60 per cent of global sales of the drink. However, after a tumultuous period in the country’s history that took in revolution, independence and civil war, and one of Irish whiskey’s biggest importers, the United States, introducing Prohibition in 1920, a steady period of decline was inevitable. By the 1960s, only three distilleries were operating in the country.

 

Fast forward to 2023, and Irish whiskey is making a comeback. Ireland is now selling 12 million cases a year, up from 200,000 in 1990, and the figure is forecast to double by 2030, overtaking Scotch.

 

Globally, Irish whiskey’s sales climbed by almost half a million nine-litre cases in one year, with 11.9 million case sales reported by the end of 2022. Irish whiskey is forecast to reach 12.6 million case sales in 2023.

 

Aside from the US, which accounts for the largest share of Irish whiskey sales in the past year, India is also developing a taste for Irish, and is on the way towards becoming its third-largest market.