Whiskey Investing In 2023 And Beyond
Whiskey cask investment has grown in popularity as an alternative investment in recent years, with the value of premium whiskey consistently appreciating. As we move into 2023, industry experts are making predictions on what we can expect in terms of investment performance.
One trend that is expected to continue shaping the whiskey cask investment market is the growing demand for rare and exclusive whiskies. With the increasing global population of high net worth individuals, the market for whiskey collections as a form of alternative investment grows. This growing market and any subsequent demand is expected to drive up the prices of rare and exclusive whiskies, making them even more valuable for investors. According to a report by Knight Frank, the value of rare whiskey increased by 9% in the year ending 2022. Another report concluded that rare whiskey went up in value by 21% in 2022.
Another trend that is expected to impact the whiskey cask investment market in 2023 is the rise of technology. Online whiskey cask investment platforms, including my own company’s platform, and whiskey auction houses have made it easier for investors to access and purchase high-quality whiskies from all over the world. The increasing use of technology is also expected to increase transparency and efficiency in the market, reducing the risk of fraud and making it easier for investors to assess the authenticity of a whiskey before making a purchase. In 2022, online whiskey auctions saw a significant increase in popularity, with a reported 14% increase in sales compared to the previous year.
In terms of specific whiskey regions, Scotland is expected to continue to be a solid blue-chip investment option in 2023. Its rich history and reputation for producing premium Scotch whisky make it a popular choice for investors. American bourbon is also expected to perform well in 2023, with the growing popularity of American whiskey and the increasing demand for premium whiskey from this region. In 2020, the value of bourbon collections increased by 7.3%, according to a report by Rare Whisky 101.
However, some experts are predicting a slowdown in the growth of the whiskey cask market in 2023. The current economic uncertainty, combined with the increased regulations and taxes on luxury goods, can potentially affect the demand for premium whiskies. This, in turn, may lead to a slowdown in the growth of the whiskey cask investment market.
In conclusion, 2023 is expected to be another year of growth and opportunities for the whiskey cask investment market. The increasing demand for rare and exclusive whiskies, the rise of technology and the solid performance of specific whiskey regions are expected to drive the market forward. However, investors should be aware of the potential slowdown in growth due to the current economic uncertainty and increased regulations and taxes.
In order to make informed investment decisions, it is important for investors to stay up to date with the latest industry trends and to seek professional advice from experts in the whiskey cask investment market. With careful research and a well-diversified portfolio, whiskey cask investment can be a profitable and rewarding investment opportunity.
The information provided here is not investment, tax or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
