Gin was the “it spirit of the past decade. During the last two years of turmoil it was the most popular drink for many. However, while it was anticipated that the popularity of gin will continue to grow but there are signs of signs that the boom in gin might be coming to an end.
Google Trends data, analysed by Whisky Investment Partners, shows the growth in interest in gin over time, year on year, starting in 2015 and getting to a high in 2018 , and then declining since. Statistics obtained from Curren Goodden Associates (CGA) indicate that the total sales of gin are down nearly one third, falling by nearly 38.5 percent when compared to the same period in the year prior to. After the downturn of prior years of high popularity, gin also was the most slow-growing spirit when contrast to other spirits. It it was up by £25m, which is £2.6 percent, signalling a shift in the market for spirits.
Whisky has experienced significant sales increases in the past year which makes it the fastest-growing spirit on the consumer market.
Which spirit is likely to be poised to surpass Gin in popularity? There are several however none more so than whisky. Then Rum.
Whisky has experienced significant growth in sales over the last year and is now the fastest-growing spirit on the market for take-home drinks. It’s risen to £154.4m and is ahead of vodka, rum and brandy.
The whisky market’s revenue is £63.30bn in 2022 compared with £10.81bn in the segment of gin. The whisky market is predicted to expand annually by 4.63 percent in the next couple of years.
As new whisky whiskies continue to hit the market, ranging from single malts with no age information and whiskies that are finished in stout barrels, and flavor-packed RTDs – the category’s innovations have given whisky a new look and are attracting younger buyers.
Whisky brands are also shifting their strategies to appeal to younger customers with their new offerings as well as making use of the home cocktail trend by offering traditional cocktail recipes. They are also replacing the usual alcohol with whisky. There’s been a rise in the consumption of whisky among 18-25-year-olds each year and the increase being 25 percent from 2022 to 2021 and a 33 per increase over 2020, mostly in the pub or at home as per YouGov.
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However the aged 18 to 25 tend to consume whisky at home, rather than at the pub , 14 percent versus. eight percent in the past year, research from YouGov indicates.
In looking at other emerging spirits it’s important to mention that rum is fast becoming the next whisky that will follow whisky’s route to make it into the market for premium spirits.
There are changes happening in the larger whisky market as the more traditional whisky categories, like Scotch and Japanese with new rules in place. For Scotch whisky the new guidelines that have been accepted in the Scotch Whisky Association will allow distilleries as well as other Scotch whisky producers to choose from a larger selection of barrels that are used i.e. barrels that were used to age Agave-based spirits, such as Tequila, Schochu, Calvados and many others.
When looking at other spirits that are on the rise It’s worth noting that rum is fast becoming the next whisky following whisky’s journey to make it into the market for premium spirits. The market for rum in the world was worth $16.61bn in 2022, and it is predicted to expand at a compound annual rate of 6.67 percent from 2022 until 2025. Rum is the main component in 5 of top 20 cocktail recipes, demonstrating its place in the drinks market. It is used in 23 percent of the cocktails that are that are served.
These minor changes will enable stockists and distillers to be the driving force behind product innovation and compete against the other areas that’ve been able to benefit from more relaxed regulations. Scottish distilleries will be able to exercise more control on their products, which is some fresh air for the sector.