U.S Whiskey Market, By Product (Scotch Whiskey, American Whiskey, Canadian Whiskey, Irish whiskey, and Other Whiskey) and By Distribution Channel (On-Trade and Off-Trade) - Trends, Analysis and Forecast till 2034

U.S Whiskey Market was valued at US$ 19.3 billion in 2024 and is projected to grow at a CAGR of 4.5% to reach US$ 28.7 billion by 2034.

Whiskey is an alcoholic beverage produced through fermenting malted rye, barley, maize, or wheat grain mash yields. It is frequently fermented in oak barrels and savored as a refreshing drink. The most popular varieties of whisky include grain, scotch, and blended, American, and Irish whiskies. Moderate whisky consumption is considered beneficial to health since it reduces the risk of heart disease and high blood pressure. On the other hand, overuse is associated with significant health issues. It is frequently used, in place of alcohol, to clean wounds during medical emergencies.

Adult customers in other countries are becoming fascinated with the history of American whisky and its adaptability in cocktails, which has led them to try more expensive American spirits. The main reasons propelling the expansion of the American whisky market worldwide include the increasing demand for premium American whiskies, the increase in super-premium and ultra-premium brands, the world's accelerating urbanization, and the rapidly expanding drinks market.

One of the main things driving the market is the nationwide growth in demand for handcrafted and high-end goods. In keeping with such factors, the market for distinctive and small-batch whisky goods is being aided by shifting customer tastes and lifestyles and increasing interest in craft and artisanal items. Additionally, the industry is developing because of the growing tendency toward premium and high-quality products brought on by customers' increased spending power. A further element driving growth is the increasing popularity of artisan cocktails, which has led to a widespread use of the product as a base for unique and original drinks. Moreover, due to the abundance of emerging craft distilleries, established businesses, and foreign whiskies on the market, brands must stand out through creative thinking and effective marketing techniques.

Disclaimer: This data is only a representation. Actual data may vary and will be available in the report.

U.S Whiskey Market Key Drivers:

• Higher preference from consumers for premium whisky  

The target market is gaining from the rising demand for premium and ultra-premium whisky goods. The market is growing because consumers are becoming more ready to spend more on aged whiskies of superior quality. Premium brands and limited-edition releases are driving this trend. Scotch has always been the leader in the premiumization of the whisky market, but in recent years, American whisky has emerged as a major contender.

• Higher wages, along with shifting approaches toward lifestyle

The industry is expanding due to consumers' changing lifestyles and rising income levels, especially among younger consumers. As a result, the business is benefiting from shifting consumer lifestyles and the growing tendency of professionals to network and get together on the weekends and midweek. Customers are now looking for unique and creative drinking experiences because whisky is often associated with the desire to appear sophisticated and classy among peers.

U.S Whiskey Market Restrains:

• Massive costs and limitations imposed by government bodies

Whiskey's hefty taxes may affect demand, leading buyers to choose less costly options and lowering liquor manufacturers' profits. Governments enforce strong laws and policies regarding the production, sale, and use of alcoholic beverages. As a result, whiskey's availability and distribution may be limited in some areas.

U.S Whiskey Market is segmented based on product, and distribution channel.

Product Insights

• Scotch Whiskey: Scotland produces Scotch whisky, a dark liquor distilled from malt and grain. There are very tight guidelines for the production of Scotch whisky. It needs to be distilled in Scotland using malted barley, water, and yeast. Other cereal grains may be added by Scotch producers for colouring purposes. The spirit must be matured in oak barrels for a minimum of three years and have an ABV of no more than 94.8%.
• American Whiskey: American whiskey product type is a dominating segment of this sector for the target market. American whiskey is matured in American oak barrels after being manufactured from fermented and distilled ingredients like American corn and/or American rye. The American Whiskey's flavour and texture are influenced by these ingredients, the barrel of origin, and the aging time. The majority of American whisky is distilled using column stills. The Bourbon kind of American whisky, named for Bourbon County in Kentucky, is arguably the most well-known. The characteristically sweet flavor of Bourbon Whisky is derived from the minimum 51% maize content required by law. The remaining grains include barley, which is necessary for the fermentation process, mild wheat, and highly spicy rye.
• Canadian Whiskey: Canadian whiskey uses alcohol distillate, which is produced by mashing and distilling cereal grains. In Canada, it needs to age for a minimum of three years in tiny wood. That's basically all there is to it: the alcohol content must be at least 40% by volume. This allows Canadian whisky blenders to innovate without being constrained by undue regulations, which is a rare luxury in the whisky industry.
• Irish Whiskey: Irish whiskey is usually made from unmalted barley, though some may contain malted barley. The malt is dried in closed kilns, where it is only exposed to hot air and not smoke. It offers a unique flavour profile and is seeing a return in popularity.
• Other Whiskey: This category includes whiskies sourced from various nations, such as Japan or India, which may be included to accommodate specific consumer tastes. Japanese whisky is thought to be smooth, balanced, and occasionally subtle. It comes in a range of types.

Distribution Channel Insights

• On-Trade: The on-trade distribution channel focuses on nightclub, bar, and restaurant sales. It usually comprises high-end and premium whiskies, which are, therefore, more prevalent in this channel.
• Off-Trade: The off-trade distribution channel consists of convenience stores, liquor stores, and other stores. It also broadens accessibility and accommodates use at home.

Regional Insights:

U.S Whiskey Market Regional Insights

• United States market is estimated to observe tremendous share and growth for the target market due to a number of factors, including a growing appreciation for craft spirits, an increasing interest in mixology and cocktail culture, and a desire for premium and matured spirits, have contributed to the extraordinary recovery of whisky in popularity in recent years. Whisky lovers looking for distinctive and varied products can now find more and more whisky bars and tasting events across the nation.

Report Scope:

Segments Covered in the Report:

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2024 to 2034. For the purpose of this study segmented the U.S Whiskey Market report based on product, distribution channel, and region:

U.S Whiskey Market, By Product:

• Scotch Whiskey
• American Whiskey
• Canadian Whiskey
• Irish Whiskey
• Other Whiskey

U.S Whiskey Market, By Distribution Channel:

• On-Trade
• Off-Trade

U.S Whiskey Market, By Region:

• U.S. (United States)

The key players operating the U.S. whiskey Market include Pernod Ricard, Diageo, Bacardi, William Grant and Sons, Beam Suntory, Brown Forman Crown Royal, Allied Blenders & Distillers, WhistlePig Rye Whiskey, Heaven Hill Distillery, and Charbay.

Recent Development:

• In April 2024, Beam Suntory, Inc., a global pioneer in premium spirits, announced the launching of its newest product, A.Overholt. This product is a modern take on Pennsylvania Rye, infused with heritage and tradition. Redefining the future and breadth of rye whisky, Overholt is recovering its status as one of the most famous rye whisky brands and reintroducing customers to one of the original styles of American whisky. A. Overholt makes Rye Whisky with a totally warm yet deep spice, akin to the 1800s, using the same mashbill that Overholt founder Abraham Overholt employed in 1810. This blend contains 80% rye grain and 20% soft malted barley. 

• Pernod Ricard*
  • Company Overview
  • Product Portfolio
  • Key Highlights
  • Financial Performance
  • Business Strategies
• Diageo
• Bacardi
• William Grant and Sons
• Beam Suntory
• Brown Forman Crown Royal
• Allied Blenders & Distillers
• WhistlePig Rye Whiskey
• Heaven Hill Distillery
• Charbay

“*” marked represents similar segmentation in other categories in the respective section.