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Scotch and agave to boost GTR spirits
Spirits volumes rose by 4% in global travel retail (GTR) last year, with American whiskey, Scotch and Tequila expected to drive future growth.
Data from IWSR revealed that value sales of spirits in GTR increased by 21% in 2023. Sales of spirits rose by 67% in volume in the channel in 2022.
The IWSR expects GTR spirits to post a compound annual growth rate (CAGR) of 5% by volume between 2023 and 2028, while value is expected to be up by 7%.
For 2023, the channel’s five biggest spirits subcategories by volume in order are Scotch, vodka, gin, liqueurs and American whiskey.
Charlotte Reid, head of GTR insights at IWSR, said: “Gin, agave‐based spirits and Japanese whisky are the only categories to see volume recover to pre‐pandemic levels.”
“The forecast to 2028 is positive for all spirits categories, with US whiskey, Scotch whisky and agave‐based spirits expected to drive the category.”
Tequila reported the biggest volume increase of all spirits in GTR last year (up by 38%), and the category is expected to grow by 11% (CAGR) between 2023 and 2028.
Total whisky is forecast to grow by 9% in value and by 7% in volume from 2023 to 2028 on a CAGR basis.
Scotch saw a 3% rise last year. It is expected to post a 6% CAGR increase over the next five years.
American whiskey jumped by 18% in volume and by 28% in value last year, while the value of Irish whiskey rose by 8% as its volumes fell by 3%.
American whiskey is expected to see a 7% value and volume rise (2023 to 2028). Irish whiskey is also set for a 7% value increase, with volume up by 6% over the same period.
Vodka dipped by 1% last year but is expected to make a 2% CAGR gain (2023-2028). Gin suffered a 3% drop in 2023, with a 2% CAGR increase forecast for 2023 to 2028.
Liqueur sales were stagnant in 2023 but are set for a 4% rise (CAGR 2023‐2028).
Cognac and brandy saw double‐digit volume increases last year, up by 19% and 12% respectively.
The French spirit is forecast to grow by 6% over the next five years, while brandy is predicted to rise by 7% (CAGR 2023‐2028).
The ready-to-drink (RTD) category soared by 25% in volume in 2023, and by 13% in value. IWSR is predicting RTDs will grow by 9% in volume and value from 2023‐2028 on a CAGR basis
In value terms, all spirits categories were in growth last year, with double‐digit gains for Tequila (up by 58%), Scotch (up by 30%), American whiskey (up by 28%), Cognac (up by 22%), and brandy (up by 21%).
Baijiu sales in GTR grew by 8% in volume last year. The Chinese spirit is expected to post a volume CAGR rise of 12% (2023 to 2028) after seeing a 3% CAGR increase in the previous five years.
IWSR highlighted that spirits growth was led by Asia Pacific, which is expected to rise by 10% in volume (CAGR 2023‐2028).
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