The Market
The UK Scotch whisky market, is currently worth over £5 billion globally with ‘rare’ whiskies alone seeing over 500% growth over the last decade.
Scotch whisky currently accounts for over 20% of the UK export value of Food & Drink and is currently sold to nearly 200 markets globally. With over 800m litres of whisky being produced by the UK currently, a mere fraction (less than 5%) is allocated to single malt.
Growth in the sector has been driven by consumer desire for whisky, growing consistently and at a rapid rate. With over 500m drinkers of whiskies worldwide, whisky is out-selling spirits including Cognac and Tequila in their native countries, creating huge demand for stock worldwide.
With 90% of Scotch whisky exported internationally the requirement for stock has far exceeded supply and created a unique niche for high end and rare stock. The demand for Scotch export whisky has traditionally been in Western economies, however a rise in consumers in India and China has seen a dramatic increase in distribution and sales across these regions.
Since world changing events of the Covid-19 pandemic, as with most markets, the whisky production and supply-chain market was also affected. Halt in production during 2020/21 created an imbalance of supply vs demand, driven by a 25% rise in consumption among whiskey drinkers and a huge rise in retail sales.
Investment into the whisky market from major alcohol brands such as Campari, Brown Forman and Diageo, who have seen significant sales increases across their whisky brands continues to grow. High end whisky tasting, whisky auctions, distillery tours in Scotland rising in popularity all contribute to the growing need for more investment whisky production, something which is already happening.
The Market: India
- In 2024, the revenue in the Whisky market in India amounts to US $17.4bn.
- It is projected to grow annually by 5.30% (CAGR 2024-2028).
- When compared globally, in India generates the highest revenue in the Whisky market with US $17,390m in 2024.
- In terms of person revenues, US $12.06 is generated in 2024.
- By 2028, the volume in the Whisky market is expected to reach 3.6bn L.
- The market is anticipated to demonstrate a volume growth of 2.7% in 2025.
- The average volume per person in the Whisky market is projected to be 2.30L in 2024.
- India’s growing middle class is driving a surge in demand for premium single malt whiskies, leading to a rise in imports and local distilleries.
The Market: UK/London
- London is a pivotal hub for UK tourism, serving as the primary gateway for international visitors. In 2021, it surpassed all major UK cities combined in inbound visits, a trend consistent before the COVID-19 pandemic.
- London excels not only in leisure tourism but also stands out as a significant business convention destination, globally recognized in 2021. Moreover, it claimed the top spot for digital nomad visits worldwide as of March 2022, outranking Bangkok, New York City, and Berlin.
- The UK Hospitality industry is expected to grow from USD 24.81 billion in 2024 to USD 28.11 billion by 2029, at a CAGR of 2.53% during the forecast period (2024-2029).
The Market: Europe
- With exports worth almost £1.6bn, the EU is the second largest regional market for Scotch Whisky.
- Four EU member states – France, Germany, Spain and Poland – are amongst our Top 10 export markets by volume. Retaining frictionless access to the EU’s Internal Market post-Brexit and tackling existing or potential trade barriers in the individual Member States is a priority for the SWA.
- Germany spends up to £202m on Scotch Whisky
- Spain currently imports £173 million compared with £118 million in 2021.
- France is currently No 2. in the world for whisky imports. A key indicator of France’s commitment to high end premium scotch whisky.
The Market: America
- Profits at Diageo slid by 15% to $3.1 billion (2.4bn) in the latter six months of 2023 after the maker of Gordon’s gin and Johnnie Walker was hit by a slump in demand for spirits that was particularly acute in Latin America, a key export market for its whisky brands.
- The company, which produces more than 100 original Scotch brands, suffered a 1.4% decline in global sales to $11bn driven by a 23% crash in what is referred to as the LAC (Latin America and Caribbean) region. This territory accounts for about 11% of group sales but that figure rises to 25% in the case if Diageo’s Scotch portfolio.
- The SWA announced a 33% increase in value which will account for the changing trend to high value scotch from blends.
Cask Storage
- Casks of all ages are stored underbond and closely monitored by warehouse staff until ready to bottle.
Whisky Cask Sizes
- There are other cask types than the standard whisky barrels, hogsheads, and butts – each with different capacities, different typical maturation periods, and different flavour profiles such as sherry versus port.
Type of whisky cask | Approximate number of litres | Approximate litres of pure alcohol | Typical flavour profiles | Relative maturation time |
Bloodtub | 30-35 | 21-25 | Varied | Finishing or very short |
Octave or firkin | 45-50 | 29-35 | Varied | Finishing or very short |
Kilderkin | 90-100 | 60-70 | Bourbon | Short |
Quarter cask | 120-125 | 84-88 | Sherry | Short to medium |
Barrel | 190-200 | 120-140 | Bourbon | Short to Medium |
Hogshead | 225-250 | 142-175 | Bourbon | Medium |
Barrique | 250-300 | 150-210 | Wine | Medium |
Puncheon | 450-500 | 286-350 | Sherry | Medium |
Butt | 475-500 | 302-350 | Sherry | Medium to long |
Port Pipe | 550-650 | 350-455 | Port | Medium to long |
Madeira drum | 600-650 | 381-455 | Madeira Wine | Long |
Tun | 900-950 | 630-950 | Varied | Long |
Re-gauging
- Re-gauging casks are performed by the bonded warehouse in which the cask lies. To perform the process, first, a sample is drawn from the cask. This sample is then analysed with a hydrometer to determine the alcoholic strength of the spirit.
Re-casking (optional)
- re-casking is done when the Bottler is looking to create extra depth, character & colour to the whisky. i.e. transferring the whisky from a bourbon cask into a smaller 50L Sherry Firkin. This process is usually reserved to the finishing stage of the ageing process and can be a short-term enhancement or 1-2 years +.
Preparing to bottle
- Before considering to bottle, it is important to have sufficient dry-good packaging materials, bottles, labels, and to make allowances on how long it will take to receive them.
The bottling fill process
- We allow plenty of time leading up to busiest periods of the year to bottle. We utilize the service of our warehouse team to bottle and be compliant with HMRC when releasing any bottles from the warehouse.
Bottling process completed
- After the bottling process is complete, we store the bottles at our warehouse until sold.