Chinese Demand Causing Global Whisky Shortage

Last year, an increase in demand for whisky from China and India – two of the world’s biggest and fastest growing economies – was largely responsible for strong growth and expansion among Scotch whisky makers.  This year, Chinese demand in this specialist beverage market is said to be causing a global whisky shortage!

In 2007, total global sales of all whiskies amounted to 495 million liters.  In 2008, malt whiskies demonstrated a 5% increase in worldwide sales, with even higher sales growth in China.

According to the Scotch Whisky Association, $1 billion has been invested across the Scotch whisky industry for 2008-2009, much of which is expected to be used to expand production capacity.

90% of all Scotch whisky produced is exported; exports rose 4% to a record $5 billion in 2006. At this time, whisky sales accounted for 25% of Britain’s total food and drink exports.

Sales in China have been soaring – rocketing from $2 million in 2001 to $1.1 billion in 2006 (helped by a 65 to 10% drop in tariffs in 2001).

However, the sheer size and the preferences of the Chinese market are now causing a global shortage at the top end of the market (for 12-year-old and older malts).  Reports claim that so much whisky is being exported that distilling companies in Scotland have been forced to ration supplies.

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