The Bourbon Blast: Unprecedented Growth in Whiskey Business
The wonderful world of whiskey is experiencing an intense surge in popularity. Bottles are flying off the shelves far more quickly than distillers can replace them, and the high demand is generating significant boom for the industry.
Whiskey and Bourbon Boom
Globally, the whiskey market is anticipated to grow at a Compound Annual Growth Rate (CAGR) of 6.4% during the period of 2022-2028. From global brands to local distilleries, everyone seems to be reaping the benefits of this whiskey wave.
Bourbon, a type of American whiskey that’s seeing a particularly significant upswing in popularity, is getting a fair share of the action too. The iconic spirit, deeply ingrained in American culture, has sparked a new interest in whiskey enthusiasts worldwide.
The newfound global demand for these brown spirits has turned into a golden opportunity for many a distiller. However, as with any sudden success, it hasn’t come without its own set of challenges.
Welcome to The Boom, But…
While many distilleries are celebrating their increased sales, the unexpected boom has forced some to face challenges they were ill-equipped to manage.
Increased Demand, Decreased Supply
Distilleries are struggling to keep up with the rapid increase in demand. Unlike other spirits, whiskey and bourbon production is a slow process, with the drink usually taking several years to mature. Their traditional distilling methods, which contribute to the unique flavors and aromas of each batch, cannot be easily or quickly modified, leading to an imbalance in supply and demand.
Quality Over Quantity
The challenge of meeting the increased demand while maintaining the quality of the product is another hurdle many distilleries are grappling with. The age-old debate within the industry – quality over quantity – has surfaced with renewed intensity amidst the bourbon boom.
As the pace quickens, distilleries across the globe are attempting to manoeuvre their constraints while taking advantage of the whiskey window.
Advance Barreling and Future Forecasting Models
A number of distilleries are reacting to the surge in demand by increasing the number of barrels they age at any one time. This involves a great deal of forecasting, and sometimes a large degree of risk, as whiskey trends can shift dramatically over time.
Innovation For Expansion
In the face of incredible demand, many innovative distilleries are playing with maturation techniques to speed up the whiskey ageing process. Some are making their barrels in-house, while others are experimenting with smaller barrels and different temperatures to enhance the spirit’s maturation. These innovations are assisting brands in maintaining their high standards, while also expanding supply.
A Look into the Future
The whiskey industry is adapting to the present set of challenges by investing in the future. Distilleries are collaborating with local farmers, investing in renewable energy sources, and even upping their contribution to tourism to ensure their future and to accommodate the expanding scope of the whiskey market.
As the bourbon boom continues its sweep across the globe, distilleries are quickly adapting, recognising the myriad of opportunities that come with it. And as a consumer, whether you prefer a single malt Scotch or a straight Kentucky bourbon, one thing is certain – there are exciting times in store for all whiskey lovers.