“‘Tis the season” to invest in whisky – as demand exceeds supply
There are several events happening across the world at the moment that makes October and November an optimal time for a whisky cask collector.
In summary, we are about to enter a period of high demand. And as everyone knows, when a premium product is in demand so too does the cost. In our case, this also reduces/limits the number of casks available to investors.
At Whisky by Time we take our client relations very seriously. Always providing transparent, honest information. This is why we’re alerting all our clients to the importance of the next few months. So what are the factors contributing to the increased confidence?
Christmas & New Year 2024– as the world gets ready for Christmas & New celebrations consumer demand for high quality whisky is at unprecedented levels. 53 bottles of Scotch Whisky are shipped from Scotland to around 180 markets around the world each second during this time. The hospitality sector has understandably responded to the demand, increasingly buying whisky direct from local suppliers in anticipation of seasonal festivities.
Chinese New Year – no sooner has Christmas finished, preparations begin for Chinese New Year taking place on the 10 February next year. 2024 is year of the dragon and all the data points to red hot fiery sales. To give you a feel Euromonitor predicts whisky market revenue in China will surpass $2.25 billion by 2025, up from $635 million in 2019. These joyous occasions and steady sales are increasing costs, (Christmas, New Year 2022 and Chinese New Year 2023 saw a 9% increase in whisky value) while reducing the number of whisky casks available for collectors.
Continued confidence – it’s great to see global whisky sales grow with new markets and consumer age groups developing all the time. For Gen Zs in both the East and West whisky is becoming the drink of choice. In some cases replacing champagne. It’s obviously good news for anyone with a whisky cask portfolio. But also useful to know to that peak demand will limit supply for those looking to build on their collections
UK India Trade Deal – while negotiations on the UK India Trade Deal continue this is a chance to secure high quality whisky casks before demand will inevitably outstrip supply. Once agreed, the free trade deal will open up the Indian market for Scotch whisky producers and could lead to a significant increase in exports. While this is immensely positive for the sector this is factor that will drive cost and cask availability.
As ever we’re here to help. If you’d like to talk over any of the above with a member of the Whisky by Time team please don’t hesitate to get in touch.