Where is the next opportunity for American whiskey?
The American Whiskey Association’s (AWA) president, Michael Bilello, believes there are growth opportunities in markets like India, Southeast Asia, and Latin America.
Last month the AWA revealed American whiskey exports generated US$1.3 billion in 2024.
Bilello says the growth potential is “extraordinary” for the category, especially in overseas markets.
“India, Southeast Asia, and Latin America all have rapidly expanding middle-class consumer bases actively seeking premium spirits with depth and authenticity”, he told The Spirits Business. “Exactly where American whiskey excels.”
However, to unlock the “unprecedented opportunity” for the category from these markets, Bilello contends the biggest barriers are still global.
In submission to the Office of the United States Trade Representative (USTR) last month, the AWA outlined a number of global trade challenges that are impacting growth in the category.
These include “tariffs, regulatory inconsistencies, labelling mandates and a lack of product recognition in critical markets like India,” Bilello notes.
In India, the world’s largest whisky market, tariffs on Bourbon were reduced from 150% to 100%, but other American whiskeys remain at 150%.
Despite market barriers, however, American whiskey still makes up more than half (54%) of all US spirits exports.
Bilello added: “At AWA, we’re focused on expanding that share by breaking down trade barriers and opening new pathways for growth. With stable tariff conditions and fair access, the future remains extremely bright.”
Evolving consumer demands
Addressing what’s shaped the category’s performance over the past year, Bilello points to premiumisation as the defining trend.
He said: “American whiskey has shown remarkable resilience despite a challenging global trade environment. Following the post-pandemic surge, the category has settled into a healthy, premium-led growth pattern that continues to resonate with consumers drawn to authenticity and American heritage.”
Overall growth is softening domestically, according to data from IWSR’s US Navigator, with American whiskey volumes at home falling by 2% in the first eight months of 2024. This was reasoned to a decline in demand for lower-priced products.
“Consumers are seeking authenticity, craftsmanship, and elevated experiences – qualities deeply embedded in American whiskey’s DNA,” Bilello noted.
“They increasingly want premium products with real stories behind them and American whiskey delivers character, integrity and a uniquely American narrative – especially meaningful as we approach the nation’s 250th anniversary.”
Internationally, Bilello also highlights “global curiosity is accelerating” adding that IWSR shows sustained growth for premium-and-above American whiskey across Europe and Asia.
He also observes ‘affordable luxury’ as continuing to drive demand, while the category’s versatility allows it to meet multiple entry points. “High-end limited releases, approachable everyday offerings and the convenience of American whiskey-based RTDs. The category is open, inviting, and unpretentious – and consumers are responding,” he said.
The AWA was formed in early September to promote and protect the category.
Bilello, president and the organisation’s first CEO, added: “Globally, with unified advocacy and strategic investment, American whiskey is primed for a new era of leadership.
“Our mission is clear: to make American whiskey the world’s whiskey.”
In the October 2025 issue of The Spirits Business magazine, we looked at how the category’s market is undergoing a correction after two decades of growth.
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