*This is not financial advice. We here at Great Drams specialise in whisky, not financial planning. While we do offer whisky casks, we offer them for your enjoyment, rather than as an investment. Cask investments, like any other, can go up and down in value. If you are in the market for a cask, or simply a wee dram of your favourite bottle, get in touch with us today and we can do the rest.

Decades ago, as far as whisky consumption was concerned, primarily you had the UK and the USA as the world’s main whisky/whiskey drinkers. Today however, thanks to Asia in particular, things are very different.

Japanese whisky for example, is proving more competitive than ever, and with established brands such as Yamazaki and Hibiki doing so well, it’s hardly a surprise. It isn’t just Japan that’s helping solidify whisky’s popularity in Asia either. China is also helping to bring in these changes, though not necessarily for the reasons you might think.

Whisky Demand in Asia Growing by the Day

Let’s face it, financially, the last few years, not only here in the UK but all over the globe as well, have been tough from a financial standpoint. We’ve seen inflation reach record highs, we’ve had interest rates hiked in an attempt to tackle inflation, not to mention astronomically high energy prices.

While all sectors have felt the pinch, the spirits market in particular has really been hit hard (take it from someone who knows). Therefore, it should come as no surprise to learn that overall growth in the spirits market has been very up and down.

While there are signs of hope on the horizon, it’ll be a while before things truly recover. Despite this, whisky has remained extremely popular and has helped keep the spirits market afloat. But why? Well, one of the main reasons for this is due to whisky demand being bolstered by overseas exports.

In 2023, single malt export numbers increased by 2%, helping the market to reach a £2bn threshold. Much of this demand has been driven by the Asian markets. It is here where cask brokers are beginning to turn their attention.

2023 saw Scotch whisky imports to Singapore increase by 19%, and 8.3% in Taiwan. China is also getting in on the cask action, particularly from an investment standpoint.

Cask Investments Look More Promising than Ever for 2024

So, how’s the cask market looking for 2024? Well, so far, things are looking very promising indeed.

India has seen cask investments drop by 22% as investors await import whisky duty tax cuts later this year. Currently, import duty numbers stand at 150% above the MIP. This is set to be reduced to 100% on bottled scotch, and halved to 75% for cask shipments. Until these cuts, things are very much stagnant.

In the U.S, Scotch imports were down 7% in both value and volume in February 2024. This saw them slip to below pre-pandemic levels. Needless to say, this had cask investors nervous in the States, and had them looking for viable alternatives. These alternatives appear to be in Asia, with China heading the charge.

Despite whisky making up just 2% of China’s spirit consumption, whisky sales there are estimated to be worth around $7bn by 2027, and be worth roughly five times the total amount seen globally. This is largely down to the fact that whisky is more than holding its own against Baijiu – a clear spirit made from fermented grains that is typically consumed at Chinese social events.

Baijiu packs a real punch and can be as high as 60% ABV. Chinese consumers appear to be looking for less alcoholic spirits. Add to this, the fact that many single malt Scotch whisky imports have a certain prestige associated with them, and you can see why whisky is starting to win over Chinese spirit drinkers.

Whisky sales are being driven by female drinkers, as well as urban, young, middle class, and educated drinkers who appear to be shunning Baijiu in favour of our Scottish drams instead. As a result, we’re seeing more international brands opening up distilleries across China.

China’s economy is not the most stable, with property and capital markets both underperforming. To offset these risks, China’s ultra-high net worth investors appear to be investing in whisky casks as a way of managing their wealth with long-term growth, until the markets pick up.