Your neighbour is buying another bottle of whisky! The rising demand for whisky.
The Endless growing demand in single malt whiskies.
Just as I was opening a Macallan 18 sherry oak: there will be one less bottle in the market.
Now, shall we give a moment of silence for this tragedy before it goes into the stomach of a young boy or, shall we celebrate and toast to the rising interest and demand of the whisky culture?
The 'Bullish' in the uncertain times
According to the global market report, whisky market is expecting to grow by $28.67bn from 2021-2025, and that, makes a 6% jump.
So, what is backing them up for the 6% jump prediction.
Many factors: The growing distilleries around the globe, the rising of the middle class in the Asia Pacific (Side note, Asia Pacific is the major revenue generating region for global single malt whisky market), marketing, brand positioning , the changing of lifestyle and the speed of distilleries releasing new bottles are stimulating our desires to purchase them.
(Hard to disagree, the grey area parallel import do contribute in the rising demand of whisky market)
Passionate whisky appreciators, Want-it-all collectors and Whisky investors are the ones who lead the whisky revolution.
Then we all wonder, what's so charming of golden liquid inside this 700ml container?
There's never lacking appreciators for single malt, especially those of high age statements or vintage editions.
Some singe malt are now viewed as premium or luxury goods (thanks to the extensive marketing from the brands), the owner's taste, status and class will be reflected in his whisky collections.
Now, we have to clear a misconception; a 40-Year-old Macallan is not expensive because it is old, but because it is rare. As whisky matures in the barrel, they will lose about 1% each year, making the output lesser, which leads to demand being higher than supply.
People are starting to realise that single malt whisky is also a safe investment with good potential returns.
One good example is Yamazaki 12; in Japan, the price has soared throughout the years.
In our local market: Yamazaki 18 was price @ 1,088 SGD 2 years ago & now, it is about 1,688 SGD (2022).
Seldom do you see a liquor that depreciates (Criteria is the bottle in good condition).
So, why not stock up some and see how the index goes- this brings up the demand.
Do note the amount of stock in the market will remain unchanged until someone opens a bottle.
The new generation
One wave after another, the younger generations, like myself, starts to learn and appreciate the beauty of whisky.
Thorsten Hartman, director of IWSR, who tracks the global drinks sector, backed this up. He stated, "There's a generational shift. The younger generation is starting to learn about whisky. These are emerging consumers who are starting to fall in love with whisky. They might not have been exposed in the past, but they're definitely exposed now"
At a recent Sotheby's auction of whisky and rare spirits, 80% of buyers were Asian and 60% were under the age of 40.
The liquid itself
At the end of the day, the liquid in the bottle plays a significant part in determining the whisky's value. Of course, some whiskies are being under-appreciated or overhyped in a free market.
But, let's say we are putting them on an equal field; you sure don't want to buy or keep a bottle that doesn't taste good right. Scotland has implied a strict rule on whisky products, ensuring that every bottle we receive is of the best quality.
And, when talking about the liquid itself, you sure can't ignore the fact that each bottle has its own unique taste and characteristics. That makes whisky extra charming; if you like peated and smokey, you can go for Octomore or Springbank, and if you want to explore something different, why not open a bottle of Arran, enjoy the island expression.
With the tight quality control and unique characteristic, whisky is worth exploring.
The interesting findings
In the year of 2012 to 2015, the demand & size of the market was actually in a stagnant stage.
Unable to break the 80bn mark and decreased in 2015.
Until 2016, the news 'There’s A Global Shortage Of Single-Malt Whisky' breaks out, stating that the world is now facing a shortage of age-labeled single-malt Scotch.
And, that might lead people to start purchasing age statement whiskies.
Nevertheless, the increasing whisky price won't stop the growing demand and market. We will still expect positive growth in the whisky sector and are welcoming more members into this community.
And, of course, it is a toast for joy.