As Americans and the world prepare to celebrate St. Patrick’s Day on 17 March, no doubt Irish whiskey will be top of mind. But, this is no longer just a once-a-year drink but is being enjoyed throughout the year.
According to preliminary data from IWSR Drinks Market Analysis, the leading authority on the global beverage alcohol market, the Irish whiskey industry overall will have a compound annual growth rate (CAGR) of 6.6 percent in the US from 2021 to 2025, and malt Irish whiskey will see a CAGR of 13 percent in the same period.
Although Irish represents only a small percentage of the total spirits volume in the US and market share among whiskies, it’s one of the fastest-growing spirits categories in the US. Over the past five years, Irish whiskey volume has increased 13.4 percent compound annual growth rate, and IWSR forecasts the category to continue to grow.
Premiumisation is a key driver for the category’s sustained interest and innovation. In 2019 alone, IWSR has tracked almost 30 new Irish whiskey brand lines that have entered the US market at a premium or above price band. As part of the trend towards premium offerings, Irish whiskey producers have been releasing products with age statements similar to those of Scotch, reaching up to 21 years in the barrel.
“We continue to track high growth numbers for brands like Jameson, Tullamore Dew, Redbreast, Teeling, Proper No. Twelve, and Slane whiskey in the US, says Adam Rogers, North American Research Director at IWSR Drinks Market Analysis.
“Interest in Irish whiskey has been led primarily by Jameson for decades, but now the establishment of more distilleries in Ireland has contributed to an increase in not only Irish whiskies, but other categories like Irish gin as well.”
In 2010, there were only four distilleries in Ireland producing and selling Irish whiskey. Today there are more than 30. But this influx of new Irish distilleries and brand choices isn’t the only factor fuelling the category’s strong performance in the US Consumer excitement and appreciation for all whiskies remains strong. Led by the recent boom in US whiskey, this is a trend that is also a significant contributor to the growth of Irish whiskey.
