World Spirits Report 2024: Irish whiskey – The Spirits Business

After dominating its homeland and the US, Irish whiskey is seeing pockets of growth in emerging markets such as Nigeria and Poland. We chart the category’s performance and outlook for the future.

Global volumes of Irish whiskey have continued to grow, with the category reporting a rise of 2.6% to 15.6 million cases in 2023, according to the Irish Spirits Market Report 2023 by Drinks Ireland. However, value fell by 14% to €875 million (US$922m), described as a “short‐term decline” by Drinks Ireland, especially when compared with 2022, when the sector reached almost €1bn in value year on year (up by 25%).

This decline is perhaps reflective of a change in consumer habits, as people grapple with inflation and have less spending money, suggesting a move towards staying in and buying less, or cheaper, alcohol.

Stephen Teeling, sales and marketing director at Dublin‐based Teeling Whiskey Company, has recognised this challenge, which is not limited to the Irish whiskey category. “Anything over €100 seems to have slowed down,” he says, with consumers being “more choosy with their purchases” as a result of the current economic environment. Teeling has seen resilient sales of its flagship Small Batch whiskey, which sits in the €30‐€40 price bracket.

Teeling has a big focus on the US market, where the company is working hard on expanding its on‐trade presence. The Drinks Ireland report notes that the US continues to be the leading export market for Irish whiskey by far, accounting for 36% of total global sales volumes. The Irish Whiskey Association and Drinks Ireland is advocating for further protections for the category in the US to protect against copycat brands. Together, they have submitted a petition to the Alcohol and Tobacco Trade and Tax Bureau, which is currently under review.

John Kelly, CEO of Belfast‐based Irish whiskey brand McConnell’s, adds: “The US has been tough and there is a well‐documented slowdown of all alcohol there, which seems to be still feeling the post‐Covid impact through the three‐tier system. That will clear soon, in my opinion, and I’m looking forward to a very positive 2025.”

Irish whiskey also remains the second most‐popular spirits category in Ireland, with a 26% share, behind vodka (30% share), and far ahead of gin (13% share). One challenge affecting alcohol in the country is tax, with Ireland having the third‐highest excise tax for spirits in the EU, after Finland and Sweden.

Beyond the US, the category is growing worldwide. For the first time, Poland became the second‐largest market for Irish whiskey in 2023, after a 16% growth rate. It was previously the fourth biggest, in 2022. Germany also soared by double digits in 2023.

According to Bord Bia, emerging markets reported double-digit growth for Irish whiskey exports, including Nigeria (up by 59%), Poland (up by 21%), Singapore (up by 55%) and South Korea (up by 11%).

McConnell’s has seen success in Ireland, both domestically and in duty free, as well as in Western Europe and Canada. Kelly adds: “We are also seeing strong momentum in Central/Eastern Europe, Africa and Asia.”

Teeling

December 2023 saw Bacardi increase its stake in the Dublin‐based distiller, and the brand is now distributed in a number of European countries through the drinks giant. As the group’s sole Irish whiskey brand, 2025 could see Teeling scale to new heights.

Flatley Irish Whiskey

While many celebrities have tapped into Tequila, world‐famous performer Michael Flatley embraced his Irish‐dancing roots and delved into whiskey this year. His debut five‐year‐old release has already entered the US, with plans to launch globally in 2025. The team also includes a wealth of industry experience, including CEO Jim Clerkin (ex‐Moët Hennessy) and master blender Noel Sweeney.

Two Stacks

The Northern Irish brand partnered with California‐based Foley Family Wines & Spirits in May, and is seeing success with its 100ml Dram in a Can in duty free. Despite being a tough market to crack, the US could soon become a major revenue driver for Two Stacks.

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