Straight up: Industry revenue will steadily grow as the number of independent distillers explodes

The past five years have demonstrated remarkable change for the Whiskey and Bourbon Distilleries industry, not only from the industry's most dominant distillers, but also from an emerging class of independent microdistillers from across the country. Although industry household brands, such as Jim Beam, Evan Williams, Jack Daniel's and Wild Turkey, have all invested in major production facilities and new artisanal stills, it is the growing class of craft distilleries that provided the industry with its recent boost. The industry, however, may not experience the same explosive growth rates over the next five years compared with other beverage industries...purchase to read more.

Industry Statistics & Market Size
Revenue
$3bn
Annual Growth 11-16
6.2%
Forecast Growth 16-21
Profit
Employment
2,447
Businesses
295

Industry Threats & Opportunities

  • Passionate drinkers of whiskey will purchase premium whiskey, leading to revenue growth
  • Profit was restrained due to skyrocketing costs for key inputs, especially for coarse grains
  • Higher sales of premium whiskeys will translate into higher profit margins for distillers
  • Industry Report - Starting a New Business Chapter

    The difficulty of entering this industry varies depending on the target market for new entrants. Production is extremely capital intensive for all distilleries, and substantial volume is needed to spread out these costs. Additionally, the long interval between the start of production and the final product being available means that cash flows are not established for some time. While some products can be distilled over shorter periods of time, some whiskeys may require over two years to age. Delayed revenue can deter players with smaller cash reserves from entering the market.Due to the relationship between aging and quality, these players may still compete in the value segments of the market. Man...purchase to read more.

    Additional Insights for the Whiskey & Bourbon Distilleries Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Whiskey & Bourbon Distilleries Industry are

  • Effective product promotion
  • Economies of scale
  • Economies of scope
  • IBISWorld analysts also discuss how external factors such as Per capita expenditure on alcohol and Price of coarse grains in the Whiskey & Bourbon Distilleries industry impact industry performance..

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    What's in this report

    What is the Whiskey & Bourbon Distilleries Industry?

    This industry consists of establishments that distill fermented grains and manufacture them into whiskey. The distillation process varies and can lead to many different forms of whiskey, including bourbon, rye and other styles and blends. These whiskeys are bottled and sold to licensed liquor wholesalers, bars, casinos, restaurants, hotels and other retail stores.

    Industry Products
  • Bourbon whiskey
  • Corn whiskey
  • Rye whiskey
  • Malt whiskey
  • Wheat whiskey
  • Blended whiskey
  • Industry Activities
  • Distilling whiskey
  • Blending whiskey
  • Bottling whiskey
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Per capita expenditure on alcohol
  • Price of coarse grains
  • Excise tax on distilled spirits
  • Per capita disposable income
  • Trade-weighted index

  • Current Performance
  • Stronger profit
  • Emerging distilleries
  • Premiumization drives growth
  • Chart: Revenue Growth

  • Industry Outlook
  • Emerging customer bases
  • Steady trade growth
  • Table: Whiskey & Bourbon Distilleries Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Whiskey & Bourbon Distilleries Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Wine & Spirits Wholesaling

  • Key Selling Industries
  • Cardboard Box & Container Manufacturing
  • Corn, Wheat & Soybean Wholesaling
  • Glass Product Manufacturing
  • Printing

  • Products & Services
  • Bourbon whiskey
  • Malt whiskey
  • Corn whiskey
  • Blended whiskey
  • Rye whiskey
  • Wheat whiskey
  • Chart: Whiskey & Bourbon Distilleries Industry Products and Services Segmentation

  • Demand Determinants
    Major Markets
  • Consumers aged 35 to 54
  • Consumers aged 34 and younger
  • Consumers aged 55 and older
  • Chart: Major Market Segmentation for the Whiskey & Bourbon Distilleries Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
  • Profit
  • Purchases
  • Wages
  • Marketing
  • Other costs
  • Chart: Cost Structure Benchmarking – Sector vs Whiskey & Bourbon Distilleries

  • Basis of Competition
  • Internal competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Whiskey & Bourbon Distilleries Industry

  • Industry Globalization
    Brown-Forman Corp., Beam Inc., Heaven Hill Distilleries Inc.,
  • Table: Brown-Forman Corp. - financial performance
  • Table: Beam Inc. - financial performance
  • Table: Heaven Hill Distilleries Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Whiskey & Bourbon Distilleries Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Whiskey & Bourbon Distilleries Industry
    Includes:
  • Industry Revenue (2007-2021)
  • Industry Gross Product (2007-2021)
  • Establishments (2007-2021)
  • Businesses (2007-2021)
  • Employment (2007-2021)
  • Exports (2007-2021)
  • Imports (2007-2021)
  • Wages (2007-2021)
  • Per capita expenditure on alcohol (2007-2021)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Alcohol By Volume
  • A standard measure of how much alcohol is contained in an alcoholic beverage (expressed as a percentage of total volume).
  • Mash Tun
  • A large tank used to convert starches in crushed grains into sugars for fermentation and distillation.
  • Premiumization
  • Trading up toward products that are of a higher quality and price.
  • Single Malt
  • A whiskey made at one particular distillery from a mash that uses only malted grain, ordinarily barley.
  • Still
  • A distilling apparatus, consisting of a vessel, in which a liquid is heated and vaporized, and a cooling device or coil for condensing the vapor.
  • Wort
  • Intermediary liquid containing fermentable sugars that will ultimately be distilled and converted to whiskey.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Whiskey & Bourbon Distilleries contains five-year forecasts and data analysis that can help you identify and mitigate risks in potential new markets. Position yourself as an expert with internal stakeholders by using our comprehensive industry research to inform your reports, proposals and presentations. Our business information will save you money by helping you make better decisions, faster.

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    This report on Whiskey & Bourbon Distilleries:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Whiskey & Bourbon Distilleries market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Whiskey & Bourbon Distilleries, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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