Whiskey Consumption by Country: Top 20 Countries - InvestingChannel

Whiskey Consumption by Country: Top 20 Countries

In this article, we are going to discuss the 20 countries that consume the most whiskey. You can skip our detailed analysis of the global whiskey market, the decline in Scotch whisky exports, and the rise of whiskey tourism, and go directly to Top 5 Countries by Whiskey Consumption.

The origin of whiskey began over 1,000 years ago when distillation migrated from mainland Europe into Ireland and Scotland via traveling monks. The Scottish and Irish monasteries, lacking the vineyards and grapes of the continent, turned to fermenting grain mash, resulting in the first distillation of modern whiskey.

READ ALSO: 20 Countries with the Highest Alcohol Consumption per Capita in 2024 and 15 African Countries with the Most Alcohol Consumption.

Global Whiskey Market: 

Whiskey is one of the Most Consumed Alcohols in the World, with the global whiskey market valued at $64 billion in 2022 and expected to reach $91.3 billion by 2028, with a CAGR of 6% during the forecast period.

The consumption of alcohol is shifting away from beer and wine and millennials are more likely to experiment with other alcoholic beverages, resulting in the growth of a ‘cocktail culture’. As a result of this tendency, the use of whiskey as a premium ingredient has increased. Product innovations such as flavored whiskeys and organic and sustainable options are also some of the major factors propelling the market.

Tough Year for Scotch:

According to recent data released by the Scotch Whisky Association, exports of Scotch have plummeted by a significant 18% in the first half of 2024, compared to the same period last year. The export value of Scotch totaled around $2.75 billion in the first six months of this year, while export volumes also fell by 10.2% to 566 million 700 ml bottles, or 36 bottles of Scotch whisky exported per second, compared to 40 bottles per second last year.

The United States continues to be the largest global market for Scotch by value, despite the 3.5% YoY fall in exports. According to the SWA, Scotch whisky exports to the US continue to feel the impact of the 25% tariff on US imports of single malt Scotch, which was levied between October 2019 and March 2021 and cost the industry around $800 million in lost exports and market share. Meanwhile, India remains the largest Scotch market by volume, despite the current 150% tariff on imports remaining in place.

The Rise of Whiskey Tourism: 

Whiskey is no longer just a drink but an important cultural phenomenon, a hook that pulls millions of enthusiasts every year to its events, festivals, and most importantly, to its distilleries. Whiskey tourism has been a great economic boon for many small towns and villages all over the world, and many distilleries have invested huge sums into new or expanded visitor centers to play up the industry’s heritage and allow guests to soak in the sights and smells of whiskey-making.

The Scotch Whisky Association has revealed that whisky is now the number one tourist attraction in Scotland, with the number of tourists to Scotch visitor centers topping 2 million in 2022 and signaling a recovery to pre-pandemic levels. Visitor spending per head also increased by 8.65%, with more than $107 million spent in total at sites across Scotland’s five whisky regions, up 90% since 2010.

One of the companies that has invested heavily to promote Scotch tourism is Diageo plc (NYSE:DEO). In 2018, the London-based company announced a $233 million investment to transform its Scotch whisky visitor experiences in the biggest concerted program ever seen in Scotland’s whisky tourism sector. Aside from upgrading Diageo’s existing network of 12 distillery visitor centers, the centerpiece of the investment is the new state-of-the-art Johnnie Walker immersive visitor experience based in Edinburgh, bringing to life the story of the world’s most popular Scotch whisky and creating a unique welcome for millions of Scotch lovers around the world. The investment seems to have paid off, as in 2023, the total number of tourists visiting Diageo’s Scotch visitor centers across the country exceeded 1 million for the first time ever.

Despite these promising figures, net sales of Diageo declined by 1.4% in the fiscal year 2024 ending on the 30th of June, largely due to an unfavorable foreign exchange impact and organic net sales decline, partially offset by hyperinflation adjustments. However, good news came from the highly popular Guinness brand, which gained double-digit volume growth and was the primary driver of overall net beer sales growth of 18%. A major reason for this is that the Irish stout has gained popularity among younger consumers in recent years in part due to celebrity endorsements. Also, despite the challenges, the company generated a strong free cash flow of $2.6 billion in FY 2024, up $0.4 billion from the previous year. Overall, DEO is still a resilient business, benefitting from its global reach and unrivaled brand portfolio. It is also a Great Alcohol Stock for Dividends, as the company stood up to its reputation as a very reliable dividend payer for decades and increased its full-year dividend by 5%, maintaining its track record of dividend increases since fiscal year 2000.

Artisan Value Fund, an investment management company, stated the following regarding Diageo plc (NYSE:DEO) in its Q4 2023 investor letter:

“Diageo is a global leader in alcoholic beverages with an impressive collection of brands across spirits and beers. The company’s portfolio of over 200 brands provides diversification and allows it to meet consumer trends. A key focus for growth has been premiumization, and today, Diageo’s portfolio is now more heavily weighted toward premium segments. Shares are trading at multiyear trough multiples on fears of growth normalizing after a COVID-induced bounce and premiumization headwinds as some markets are showing consumers trading down to value alternatives. In the near term, margin expansion will likely be constrained, but the company generates meaningful free cash flow and returns it to shareholders through dividends and share repurchases. Over the past five years, Diageo generated £12 billion FCF and returned £16 billion to shareholders. Although spirits are more cyclical than other staples, the company’s growth prospects are better long term, and we believe the current situation has provided us an attractive investment opportunity.”

Diageo plc (NYSE:DEO) was also included in our list of the Best Alcohol Stocks to Own According to Hedge Funds.

While we acknowledge the potential of DEO as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than DEO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

With that said, here are the Top Whiskey Drinking Countries in the World.

Whiskey Consumption by Country: Top 20 Countries Brent Hofacker/Shutterstock.com

Methodology:

To collect data for this article, we have referred to websites such as VinePair, Thrillist, Business Insider, etc., looking for Countries that Drink the Most Whiskey. The following countries have been ranked by their annual whiskey consumption per capita as of 2014 (the latest year for which the data was released). When two countries had the same consumption of whiskey, we ranked them by their overall alcohol consumption per capita instead.

At Insider Monkey we are obsessed with the stocks that hedge funds pile into. The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).

20. Taiwan

Annual Whiskey Consumption per Capita: 0.63 liters

Famous as a lucrative market for Scottish single malts, Taiwan has also established its own whiskey industry in recent years and is now home to world-renowned brands such as Kavalan.

19. South Korea

Annual Whiskey Consumption per Capita: 0.64 liters

The South Korean millennials and Gen Z can’t seem to get enough of whiskey, sending imports of the popular spirit sky-high. The country consumed 14.2 million liters of dram in 2022, not much compared to some other nations, but up 46% from the previous year, making it the Fastest-Growing Whiskey Market in the World.

18. Portugal

Annual Whiskey Consumption per Capita: 0.67 liters

Although famous as a wine-drinking country, Portugal is also an important destination for Scotch exports, with brands such as Johnnie Walker, J&B, and Wiliam Lawson’s leading the market.

17. Greece

Annual Whiskey Consumption per Capita: 0.73 liters

Sales of Scotch whisky soared in Greece after the country joined the European Union in the ‘80s and import restrictions were lifted. Brands like Haig Gold Label, Jameson, and Black & White lead in terms of market share in the country.

16. Japan

Annual Whiskey Consumption per Capita: 0.78 liters

The Land of the Rising Sun has emerged as a powerhouse of whisky, captivating the taste buds of enthusiasts from around the globe, but that doesn’t seem to stop it from wanting more from beyond its shores. The country is an avid consumer of Scotch whisky, with imports surpassing 75 million bottles in 2022, up 33% from the 56 million bottles acquired in 2021.

15. Sweden

Annual Whiskey Consumption per Capita: 0.86 liters

Although the Swedes love their single malt Scotch, the Nordic country has itself become an impressive new force in the whiskey industry, with several distilleries popping up over the last few years.

14. New Zealand

Annual Whiskey Consumption per Capita: 0.87 liters

Being a former British colony, it doesn’t come as a surprise that the Kiwis have now established one of the most exciting whisky scenes in the world. New Zealand whiskies show great promise and typically hold banana, toffee, and fruity sweetness on the pallet.

13. Belgium

Annual Whiskey Consumption per Capita: 0.88 liters

While Belgium is mostly famous for its beers, the country now also excels in producing top-notch whisky. Taking a more artisanal approach, the Belgian distillers are employing local ingredients and experimenting with various aging processes to develop their unique styles.

12. Venezuela

Annual Whiskey Consumption per Capita: 0.91 liters

Whiskey became a popular drink of choice in Venezuela during the country’s oil boom, but many Venezuelans are now turning to rum after the country’s economic crisis has put those once-popular bottles of Scotch out of reach for many.

11. South Africa

Annual Whiskey Consumption per Capita: 0.93 liters

With over 4 million consumers, whiskey is the most popular spirit in South Africa. Scotch whisky is held in high regard in the country and with a steady rise in the popularity of single malts, the African nation now accounts for nearly 4% of all Scotch leaving Scotland.

10. Canada

Annual Whiskey Consumption per Capita: 1.19 liters

Home to Crown Royal, one of the Most Popular Whiskey Brands in the World, Canada produces some of the most original, creative whiskies on the market. Although Scotch is highly popular in the country, Canada also imported $76 million worth of liquid gold from its southern neighbor in 2022.

9. India

Annual Whiskey Consumption per Capita: 1.24 liters

India is the Largest-Whiskey-Drinking-Country in the World, with the South Asian country drinking almost half of the entire world’s supply of the spirit. India also recently overtook France to become the Country that Imports the Most Scotch Whisky, surpassing 219 million bottles in 2022 – a meteoric 60% rise on the 136 million bottles imported in 2021.

8. Ireland

Annual Whiskey Consumption per Capita: 1.24 liters

Ireland, once the grand capital of whiskey, is now once again making a grand comeback. The Emerald Isle has gone from once having just two operating distilleries – Bushmills and Midleton – to around 45 currently in operation, and several more in the pipeline. The value of Ireland’s whiskey exports crossed the €1 billion ($1.1 billion) mark for the first time in 2022.

7. United Kingdom

Annual Whiskey Consumption per Capita: 1.25 liters

Although itself home to some of the Best Whiskies in the World, the United Kingdom is also now a top export destination for American whiskies after the country decided to end a four-year-old tariff on them two years ago.

6. United Arab Emirates

Annual Whiskey Consumption per Capita: 1.27 liters

The UAE has undergone a spectacular transformation in recent years, turning into a major international center for trade, travel, and entertainment. A cosmopolitan population and a thriving tourism sector have increased the demand for luxury spirits, particularly whiskey.

5. Spain

Annual Whiskey Consumption per Capita: 1.29 liters

Spain also has a deep love affair with Scottish whiskies, with Johnnie Walker and Ballantine’s being among the most popular brands in the country. Spain is also home to a handful of whisky distilleries, of which the best known is Destilerias Y Crianza del Whisky.

With an annual consumption of 1.29 liters per person, Spain ranks 5th in our list of the Countries with the Highest Whiskey Consumption per Capita.

4. Australia

Annual Whiskey Consumption per Capita: 1.3 liters

Australians have developed a large appetite for whiskey from the US and the Land Down Under was among the Largest Importers of American Whiskey in the world in 2022, with $117 million worth of imports. American whiskeys became especially popular in the country during the Covid-19 lockdowns, with Jack Daniel’s being the most popular brand.

3. United States

Annual Whiskey Consumption per Capita: 1.41 liters

Whiskey has been the drink of choice for many Americans since time immemorial, with more than 31 million 9-liter cases of American whiskey sold in the country last year, generating nearly $5.3 billion in revenue for distillers.

Bourbon is a $9 billion signature industry in Kentucky that generates more than 22,500 jobs. And if we’re looking at production and consumption, the state receives more than $286 million in tax revenue each year from its iconic whiskey.

Despite a thriving domestic industry, the United States is also the Country that Imports the Most Whiskey in the world, with over $2 billion worth of imports in 2022.

2. Uruguay

Annual Whiskey Consumption per Capita: 1.77 liters

Uruguay’s deep appreciation for whisky can be traced back to its historical ties with Scottish immigrants and the growing popularity of premium Scotch brands. The country has also established its own whisky industry which follows the tried and tested model of importing Scotch whisky in bulk, blending it with locally produced spirits, and then releasing it under local labels for the domestic market.

1. France

Annual Whiskey Consumption per Capita: 2.15 liters

With an average annual consumption of approximately 2.15 liters per person, France is the Country that Drinks the Most Whiskey per Capita in the world. Scotch dominates the French market and the country imported 205 million bottles of the spirit in 2022, making it the second-largest import market for Scotch whisky, knocked off the top spot by India. William Peel, Ballantine’s, and Sir Edward`s lead in terms of brand market share in France.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.

Disclosure: None. Whiskey Consumption by Country: Top 20 Countries is originally published on Insider Monkey.

Related posts

Advisors in Focus- January 6, 2021

Gavin Maguire

Advisors in Focus- February 15, 2021

Gavin Maguire

Advisors in Focus- February 22, 2021

Gavin Maguire

Advisors in Focus- February 28, 2021

Gavin Maguire

Advisors in Focus- March 18, 2021

Gavin Maguire

Advisors in Focus- March 21, 2021

Gavin Maguire