Irish whiskey has been experiencing a renaissance, attracting attention from investors worldwide with over £1.31 billion having been invested into the market within the last 10 years. With a rich history, a rapidly expanding market, and a growing demand globally, Irish whiskey presents a unique and potentially lucrative investment opportunity. This article explores the key reasons why investing in Irish whiskey could be a smart move for your portfolio.
A Brief history of Irish Whiskey
The origins of whiskey production in Ireland are steeped in antiquity, tracing back to the 12th century. It is believed that Irish monks brought the technique of distilling perfumes back from their travels to Mediterranean countries and modified it to create whiskey. The word 'whiskey' itself comes from the Irish term “uisce beatha,” meaning “water of life.”
During the 19th century, Irish whiskey experienced a golden age, becoming the most popular spirit in the world. Distilleries flourished, and innovation was at its peak.
However, a series of unfortunate events in the 20th century, including Prohibition in the United States, trade wars with the British Empire, internal political strife and two World Wars, led to a sharp decline. By the late 20th century, only 4 distilleries remained in operation.
Current Market Overview
The turn of the 21st century marked a renaissance for Irish whiskey. The last decade, in particular, has seen a remarkable revival. From 4 four distilleries in 2010, the landscape has transformed with over 38 distilleries by 2019, reflecting a resurgence in both craft and heritage brands. This revival is underpinned by significant investment, with around USD 1.9 billion poured into the industry over the past decade, rejuvenating old distilleries and establishing new ones.
Sales
In 2023, 12.9 million nine-litre cases of Irish whiskey were sold, which is a 3.22% increase from the previous year.
Exports
In 2023, more than 25 million nine-litre cases of Irish spirits were sold, which is equivalent to 10 bottles sold every second.
Production
The Irish Whiskey Association says that there are over 40 distilleries on the island, producing around 110 million litre of whiskey per year.
Market size
The global Irish whiskey market size was valued at USD 6.36 billion in 2023.
Midleton Distillery
The largest distillery in Ireland, home to the brands Jameson, Paddy, and Powers.
Today, Irish whiskey is the fastest-growing premium spirits category in the world. Despite a global trend towards reduced alcohol consumption, when people do choose to drink, they increasingly seek something special, aiming for a more refined experience. This desire for quality has driven demand for premium spirits like whiskey, fuelling the international growth of Irish whiskey. It has also helped shift the perception of whiskey from being an "old man's drink" to something more appealing to a younger audience.
1 | United States |
2 | Poland |
3 | Ireland |
4 | United Kingdom |
5 | Germany |
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“Globally there is a growing trend of people more interested in consuming less alcohol, but when they do, they seek out better experiences,” Teeling adds.