The Whisky Industry: Exploring Growth, Rarity, and Challenges

The Whisky Industry: Exploring Growth, Rarity, and Challenges

Introduction:

The whisky industry continues its upward trajectory, fueled by a combination of factors such as the opening of international markets, increasing demand in emerging economies, and the easing of tariffs. However, this growth has resulted in some notable consequences, including a scarcity of well-aged products and limited availability of new make whisky. In this blog post, we will delve into the industry's expansion, the opportunities it presents for collectors and investors, and the challenges faced by whisky enthusiasts seeking new make varieties.

Industry Growth

The whisky industry is experiencing remarkable growth, propelled by several factors. One key driver is the opening of international markets, particularly in Asia and South America. The demand for whisky in India alone has surged, leading to substantial spikes in the industry. Moreover, the easing of tariffs has had a significant impact. European tariffs on bourbon have been dropped, while US tariffs on Scotch have been removed, resulting in increased demand and a promising outlook for the industry.

Rarity of Well-Aged Whisky

The surge in demand has had repercussions on the availability of well-aged whisky. Distilleries are compelled to ship younger products to meet the growing market demand, leading to a scarcity of older, well-aged varieties. However, this presents a unique opportunity for barrel collectors and investors. By purchasing and holding barrels until they reach older ages, enthusiasts can possess a rarity in the market, potentially enhancing the value and desirability of their investment.

Limited Availability of New Make Whisky

In addition to the scarcity of well-aged whisky, there is a shortage of new make whisky in the current market. Most distilleries have their production capacity fully committed well into 2023 and even 2024. New make whisky offers lucrative returns due to its lower purchase price compared to well-aged varieties. However, acquiring new make whisky has become increasingly challenging, given its limited availability. Whisky enthusiasts and investors must navigate this obstacle to gain access to this sought-after category.

Conclusion:

The whisky industry's ongoing growth offers exciting opportunities for collectors and investors, as international markets continue to open up and demand rises across various regions. However, the expanding industry also poses challenges, including a scarcity of well-aged whisky and limited availability of new make varieties. As enthusiasts navigate these dynamics, the rarity of well-aged barrels and the potential value of new make whisky create an environment ripe for exploration and investment. By staying informed and adapting to the evolving landscape, whisky lovers can make the most of this thriving industry.

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