Consumer appeal for sought-after Scotch whisky casks will likely fuel the emergence of similar models in other spirits categories, according to IWSR Drinks Market Analysis.

So-called ‘status spirits’ – brands retailing for $100 or more – have proved to be more resilient through the years to economic curveballs (SARS, 2008 financial crisis), according to a newly published *IWSR Status Spirits Strategic Study.

The report says the sale of individual Scotch whisky casks, which command sizeable sums in a market already estimated to be worth $40 million, can push the envelope when it comes to the sale of bourbon, rum and US whiskey casks.

‘UNIQUE AND NUANCED SECTOR’

Mark Meek, CEO, IWSR Drinks Market Analysis said: “Though the status spirits market is relatively small in size, these are highly coveted and often very rare and allocated products that appeal to affluent and aspirational spirits aficionados and collectors, and yes, sometimes to people only seeking that badge value.”

“It’s a unique and nuanced sector which has definitely benefitted from the general trend towards premiumisation, and also by the younger generation who continue to seek out luxury, and find it in high-end spirits.”

Eight key spirits categories in eight major focus markets, including travel retail, are covered in the study.

Together, these account for 93% of the global ‘status spirits’ market, which the report records as being worth  $8.3bn in value terms (excluding baijiu).

The market is said to be increasing at a CAGR of 7% (2014-2018), significantly ahead of the total global spirits market at CAGR 2%.

Established categories such as Cognac and Scotch are heightening demand for ‘status spirits’ over and above their other spirits counterparts, although US whiskey and tequila are said to be witnessing faster growth overall.

Meek points out that the ‘status spirits’ market can also be quite dependent on Chinese customers, tourists and global travel retail.

*’Status spirits’ are grouped into two classes: those in the $100 to $1,000 ‘affordable luxury spirits’ price range and those in the $1,000 or more ‘ultra prestige’ bracket.

The $100 to $250 segment generates the most value, while growth is fastest in the $250-$1,000 bracket.

Study conducted prior to the Covid-19 situation.