These Trends Continue to Define Bourbon’s Growth
Although the whiskey industry has been around for decades, various challenges have affected it in the past making its growth slow. Between the 1980s and 2010 for example, sales plunged as competition from other liquors intensified. But the best was to come in the 2010s when the millennials redefined the industry with their new taste for spirits. The sales of whiskey have since then been surging despite the challenges in the market. As we start a new decade, this trajectory is expected to be the case. Here are other trends that should be expected in 2020 and beyond.
1. Cask or barrel finishes will remain a priority
As the market continues growing, consumers in the US keep demanding variety. In 2019, the number of bourbons finished in rum, sherry, and port barrels increased adding sweetness to whiskey which American consumers seem to buy more. Going into the future, whiskeys in casks and barrels such as sherry, cognac, wine and rum among others will bring new flavors that will allow people to choose from a wide variety. The number of finished whiskeys has been increasing and this trend is continuing into 2020 as liquor companies seek to create unique products. The experiments on bourbon will intensify as distilleries look for new flavors that sell.
2. The export market will keep increasing and blends will overshadow age
Although the American liquor industry experienced many challenges in the last decade due to tariffs in Europe, China, Mexico and Canada, the export market will keep growing. The demand for brown spirits will continue rising and producers will not be able to keep up as there is not an adequate supply of old/aged whiskeys. As such, distilleries will have to adopt blends and ditch the aspect of age. Although some people care about age, millennials who are now the largest number of customers are more interested in flavors than years. As demand goes up, people will increasingly focus on the brand rather than age. As independent distilleries keep emerging, creativity will also improve and taboos will be broken as consumers change their prejudices. However, traditional drinkers will still favor age statements even if the labels on the bottle do not necessarily mean the drink is great.
3. Low-quality whiskeys will hit the market
Besides the age factor and tariffs, the quality of whiskey will be a challenge as markets grow. The wave of whiskey will see an influx of low-quality spirits that are not fully matured. The emergence of the new distilleries is to blame for this. Most of them will seek to build their profit and recover the cash they invested. While this may be beneficial for the specific distillery in the short term, this trend will hurt the industry overall in the long term. As we begin a new decade, this will be one of the leading challenges that the industry will have to deal with. Marketing products will become a challenge because consumers will be more cautious and specific on taste and color.
4. Competition with nontraditional countries
American bourbon has for years driven the industry but as the markets improve, competition from other countries will emerge. Canadian and Irish whiskeys which are some of the traditional nations, are already showing good signs in the market. Apart from Canada, the US and Irish whiskeys, Japan, Taiwan, France and India are already making way into the market. Although such countries may not outshine the US, at least for now, they will get some market share. A taste of exotic flavors will soon be available on the US shelves, and customers will be glutted with choices. With all the above trends, the consumer and the producers should expect good days ahead.
