Scotch to See 5% Growth By 2020

Global sales of Scotch will have grown by 5% between 2015 and 2020, driven by the premium category and rising disposable incomes, new market research claims.

The compound annual growth rate of 5%, considered “steady” by analysts, will be fuelled by the growth of the premium whiskies and consumer perception of Scotch.

Nearly nine in ten consumers worldwide consider Scotch an “affordable luxury”, which is encouraging producers to release more upmarket brands, according to researchers at Technavio.

The study claims that premium blended Scotch, which includes brands like Johnnie Walker and Chivas Regal, will benefit most from this market trend. Blends accounted for 79% of the Scotch market in 2014, and this dominance is predicted to continue.

The Global Scotch Whisky Market report claims that organic Scotch is a trend that will also drive growth, mirroring the shift towards natural winemaking and craft beer in other drinks categories.

Turkey will be a market to watch over the coming years, the Canada-based company says, as growth in demand here will help keep Europe the Scotch category’s largest market.

Rosemary Gallagher of the Scotch Whisky Association told db: “We’re seeing some strong signals of growth in Scotch Whisky exports with clear evidence that the recent decline in Scotch Whisky is slowing. In the first half of last year, exports totalled £1.7 billion, with Single Malt exports up 5% to £406 million.

“The long-term prospects for Scotch Whisky remain good. This is reflected in the large number of new distilleries opening, with half a dozen starting production in the last year or so.

“Encouraging trends are starting to develop in several key markets despite continuing economic headwinds, political uncertainty in some parts of the world, and the impact of a stronger pound sterling in many areas.”

Source:the drinks business

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