Who is Drinking Bourbon? Probably Not Who You Would Expect
American whiskey might have encountered lots of challenges in the past, but things seem to be headed in the right direction if the current trends are anything to go by. The industry saw a rise in sales by 7.7 percent surpassing the spirits industry. It has led the way for a seventh straight year when it comes to market share among the US brewers. The main aspect that has led to an increase in sales is a sudden demand among millennial and young adults. Millennials have gotten their fair share of criticism due to the demise of many industries such as movies and others. But now, this generation is getting a highly deserved credit for the unexpected yet timely interest in whiskey and hard liquor. It is timely because their interest comes at a time when American Whiskeys needed a lifeline due to competition it has faced from the European industry.
The increased demand for whiskeys among the millennial sparked growth in sales of American whiskey by more than 7 percent. Historically, bourbon and scotch whiskeys appealed to males because of the strong flavors but new studies show that young women are becoming significant buyers. The bestselling brands are the likes of bourbon, Tennessee whiskey and rye, all of that driven by the interest of young adults according to a report by the Distilled Spirits Council of the United States.
While young Americans, according to research, drink less alcohol generally, a shift in their taste is helping the largest spirit distillers such as DGE improve their sales. On the other hand, it is lowering the demand for lager as US drinkers increasingly switch from beer and wine to spirits. The Distilled Spirits Council in 2019 reported last year as the seventh straight year of record spirit sales showing the continued increase in market share. The overall sales of distilled spirits rose by 4.5 percent in 2018, while the shipments grew by 2.4 percent the same year. This raised the domestic market share of spirits significantly. While the spirits market has been gaining, the wine market has remained consistent at around 17 percent with beer market slipping.
Buying American
Despite the late increase in sales of American whiskeys over the past few years to about $48.8 million, it still has not reached what it used to be in the 70s, where it hit more than $80 million. These whiskeys are also making way to the international market in a big way. While the retail prices of bourbon such as Mitcher’s Distillery start with as low as $50 a bottle to as high as $10,000 for a bottler aged 20 years, they can fetch even higher prices abroad.
For Irish whiskey, the same trend has been evident. After decades of decline of this industry, demand for various types of whiskey is again showing signs of soaring demands over the last decade. The Irish Whiskey Association is directly linking this to the young people who now appreciate the taste of the tipple. The association reports a rise in sales from 6 million cases back in 2010 to a projected 12 million cases in 2020, that is double the number.
But again, many industries, including the liquor, are always at the tipping point as hostilities between nations and trade wars persist. European Union and other countries such as Canada, Mexico and China have all put tariffs on the American whiskey industry. However, despite the tariffs, and taxation regimes back at home, liquor companies are up for a bright future. These variables according to industry specialists, might not affect the rising demands and subsequent growth in sales.
