Whiskey Wave Rises With New Regulations In India, Middle East

The whiskey industry is witnessing a surge in global demand, driven in part by recent regulatory changes in international markets. Notably, the Middle East and India have become crucial players, altering the dynamics of whiskey production and distribution.

India’s Ascendancy in Whiskey Consumption

India’s rise as a whiskey consumer has been particularly striking. In 2022, India overtook France to become the largest consumer of whiskey by volume. Anthony Zhang, CEO and co-founder of VinoVest, highlighted this shift during Benzinga’s recent webinar on whiskey investing. He stated, “India surpassed France as being the largest consumer of whiskey worldwide, and a lot of that is actually locally made in India”.

This increase in consumption is not solely driven by domestic production. There is a growing appetite for American bourbon, which is being blended into local recipes and brands. Zhang noted, “They are wanting a lot of what you can call bourbon from America shipped to India, blended into different recipes, and then also made into local brands as well.”

Regulatory Shifts In The Middle East

Thanks to changing regulations, the Middle East has also emerged as a major market for whiskey exports. These adjustments have opened new opportunities for whiskey producers looking to expand their reach. The region’s growing middle class and evolving social norms are contributing to a rising demand for luxury spirits.

Zhang explained the broader impact of these changes: “The export market, especially from the Middle East and India, is growing. This growth is opening up new opportunities for whiskey producers and investors.”

Impact On Whiskey Producers

These regulatory changes are having a tangible impact on whiskey producers worldwide. Independent bottlers, such as The Single Cask, are particularly well-positioned to benefit from these market expansions. Vincent Flint-Hill of The Single Cask discussed how these changes are influencing their operations: “We are now able to bring our single cask whiskeys into markets that were previously inaccessible due to bottle size regulations and other restrictions.”

Recent changes to bottle size regulations in the United States have also contributed. Flint-Hill mentioned, “A couple of years ago, the 750 ml regulations changed for the USA, which is still the biggest market in the world. This means that independent bottlers can now access the American market with the same products they release in Europe and Asia.”

Future Prospects For Investors

For investors, these regulatory shifts present a promising landscape. The growing demand in India and the Middle East is driving the need for more aged whiskey, which in turn creates opportunities for those investing in whiskey casks. Zhang shared some comments on returns: “For a five-year hold in the American whiskey market, average annualized returns have been in the mid to high teens, around 15% to 17%.”

As the global market for whiskey continues to expand, producers and investors alike are poised to capitalize on these regulatory changes, driving further growth and development in the industry.

Read Next:

• Whiskey’s Best Kept Secret: Independent Bottlers Bring New Flavors To Market

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