Australia Whiskey Market Growth Analysis - Forecast Trends and Outlook (2025-2034)

Australia Whiskey Market Trends

The growth of the Australia whiskey market is driven by its increasing global recognition, with award-winning brands offering high-quality products, including single malt and blended whiskies. Distilleries continue to innovate by experimenting with unique ingredients and production techniques. Sustainability plays a key role in attracting eco-conscious consumers. This growth is underpinned by strong domestic demand and expanding exports. According to the 2022–2023 NDSHS, males are more likely than females to consume alcohol at risky levels, with 39% of males aged 14 and over and 23% of females aged 14 and over engaging in such behaviour.

The opportunities in the Australia whiskey market are bolstered by a growing export presence, particularly in the US, Europe, and Asia. Unique flavour profiles, shaped by Australia’s climate, help to distinguish local products. Whiskey tourism continues to thrive, with distillery tours and festivals contributing to local economies. Furthermore, the industry creates significant employment opportunities across various sectors, driving further economic growth.

Australia Whiskey Market Growth

The demand for the Australia whiskey market is rising in prestige as a premium product, driven by the growing craft distillery movement that adds variety to offerings. Government support through grants and initiatives further fuels the market, while its growth provides ample investment opportunities. The sector also plays a key role in preserving Australia’s cultural heritage, particularly in agriculture and distilling traditions, ensuring long-term sustainability. As per the industry reports, alcohol consumption per capita has increased, rising from 10.0 litres in 2019–20 to 10.5 litres in 2022–23, with wine making up the largest share of alcohol consumed at 42% in 2022–23.

The Australia whiskey market revenue is impacted as increased local whiskey production reduces dependency on imports. Distillers are experimenting with barrel-aging methods, which result in distinctive flavour profiles. Australia’s robust distribution network supports effective retail and export channels. Younger generations are key drivers of future market growth, while collaborations with the wine industry further enhance the uniqueness of Australian whiskey offerings.

Australia Whiskey Market Insights

• The rise in alcohol consumption, with 69% of Australians aged 14 and over drinking alcohol in the past year (2022-2023 NDSHS), benefits the Australian whiskey market by expanding the potential customer base, leading to higher demand for whiskey products. The increased consumption supports growth in both domestic and export markets.
• According to the Australian Institute of Health and Welfare (AIHW), 225.4 million litres of pure alcohol were available for consumption in Australia in 2022–23, up from 208.6 million litres in 2019–20. This growing supply of alcohol directly benefits the whiskey market by fostering a larger market for whiskey as a premium spirit choice.
• With 18.5% of adults consuming over 10 standard drinks in 2022, as reported by the Australian Bureau of Statistics (ABS), this higher consumption rate creates an opportunity for whiskey brands to tap into a more consistent and engaged consumer base, increasing their market share within Australia’s alcoholic beverage industry.

Australia Whiskey Market Drivers

Craft Distilling Movement in Australia

The growth of the Australia whiskey market has been driven by the rise of the craft distilling movement. Independent, small-batch distilleries are gaining popularity due to their focus on innovation, quality, and unique flavours. These distilleries experiment with local ingredients and unconventional aging processes, appealing to consumers who seek distinct, artisanal products. This trend also reflects a broader shift towards supporting local businesses and sustainability, contributing to the increasing popularity of craft whiskey both domestically and internationally. In June 2022, Goa-based gin brand Stranger & Sons teamed up with Australian craft distillery Four Pillars to develop two distinct gins, Spice Trade and Trading Tides. The collaboration, driven by a mutual passion for innovation and cultural heritage, began virtually following their meeting at Bar Convent Berlin in 2019.

Sustainable and Eco-Friendly Practices

Sustainability has become a significant trend in the Australia whiskey market, with many distilleries adopting eco-friendly practices such as using renewable energy, conserving water, and reducing waste. An increasing number of distilleries are sourcing local, sustainable ingredients to reduce their environmental impact. As consumer demand for ethically produced products rises, particularly among those prioritising sustainability alongside quality, Australian whiskey brands are promoting these eco-conscious practices. This aligns with global trends towards sustainability and ethical sourcing in the food and beverage sector. In Australia, "Cape Byron Whisky" is regarded as a sustainable whiskey choice, being the country’s sole B-Corp certified distillery. It produces its single malt whisky in the coastal rainforest of Byron Bay, with a strong emphasis on environmentally responsible practices.

Opportunities in the Australia Whiskey Market

The drift towards premiumisation is increasingly shaping the Australia whiskey market dynamics and trends. Consumers are moving away from mass-produced options, favouring high-quality whiskeys that offer unique experiences. Australian distilleries are responding by crafting small-batch, limited-edition releases with distinct flavour profiles and superior craftsmanship, positioning Australia as a producer of world-class spirits. In July 2024, Two Stacks introduced "Dram in a Can," a 100ml can of 43% non-chill filtered blended Irish whiskey, combining five elements like dark grain and peated malt for a honey, caramel, and light peat profile, all presented in sustainable packaging.

Market Restraints

The Australia whiskey market faces several restraints. High production costs, due to quality ingredients and long aging periods, limit profit margins. Regulatory challenges can hinder industry growth, while competition from established global whiskey brands, especially from Scotland, Ireland, and the US, remains strong. The Australian climate accelerates aging, restricting product variety. Additionally, as a young whiskey producer, Australia has a smaller domestic market.

Consumer demand fluctuates based on economic factors and shifting preferences. Supply chain disruptions, such as global events, can impact ingredient availability. Lastly, sustainability pressures require costly, resource-intensive practices for eco-friendly production, presenting further challenges for distilleries.

Australia Whiskey Market Share

Market Analysis by Type

According to the Australia whiskey market analysis, American whiskey remains in high demand, benefiting from its bold flavours and variety of styles like bourbon, rye, and Tennessee whiskey. The popularity of classic cocktails, such as the Old Fashioned and Whiskey Sour, has sparked further interest, with consumers drawn to its versatility and quality. In November 2023, the American bourbon brand Four Roses was introduced to Australia, exclusively distributed by Vanguard Luxury Brands. Founded in the 1860s, Four Roses Kentucky Straight Bourbon is aged for a minimum of five years and offers a blend of 10 recipes, with fruity, floral, spicy, and honeyed notes.

Irish whiskey is admired in Australia for its smooth, light character, appealing to both experienced drinkers and newcomers. The growing trend for premium and craft spirits has led to a surge in interest in Irish whiskey, with its rich heritage and distinctive flavours establishing a strong market presence. In September 2022, Silkie Irish Whiskey from Sliabh Liag Distillers was launched in Australia, introducing a smoky style of Irish whiskey through an exclusive partnership with Dan Murphy’s, known for its peated components and smooth, smoky blend.

The Australia whiskey market continues to expand as scotch whiskey maintains its popularity, with its prestigious reputation and wide range of expressions, from blended to single malts. The appeal of Scotch lies in its blend of tradition and innovation, as distilleries experiment with new ageing techniques and flavours. Scotch remains a favoured choice for both connoisseurs and casual drinkers.

Canadian whiskey is appreciated in Australia for its smooth, approachable flavour, attracting consumers who prefer milder, versatile spirits. Being more affordable than some premium whiskies, Canadian whiskey is commonly used in mixed drinks and cocktails, contributing to its growing demand in Australia's expanding whiskey market.

Market Analysis by Quality

The demand for the Australia whiskey market has increased as the premium segment benefits from growing consumer interest in high-quality, accessible whiskies. As more people seek distinctive and flavorful options, distilleries are focusing on innovative, craft-driven expressions. This segment appeals to both seasoned whiskey drinkers and newcomers, offering a range of flavours at competitive prices. In February 2024, The GlenAllachie distillery launched its first peated single malt Scotch whisky brand, Meikle Tòir, in Australia, which includes four small-batch variations: The Original, The Sherry One, The Chinquapin, and The Turbo.

The high-end premium whiskey market in Australia continues to thrive due to an increasing demand for luxury and exclusive products. Consumers are increasingly willing to pay more for high-quality, well-crafted whiskies with unique flavour profiles. This segment has seen strong growth, with brands offering limited editions and distinctive aging processes, appealing to a more sophisticated consumer base. In December 2023, Iconic Beverages began exclusive distribution of Bardstown Bourbon and Green River Whiskey in Australia, including premium expressions like the Origin Series #9 and Discovery Series #9.

The super-premium segment in the Australia whiskey market flourishes by catering to discerning consumers who seek rare, aged, and exclusive whiskies. This market segment has become increasingly popular among collectors and connoisseurs willing to pay a premium for limited-edition releases and superior quality. Super-premium whiskies typically feature unique characteristics, attracting those in search of exceptional craftsmanship and luxury experiences.

Market Analysis by Distribution Channel

According to the Australia whiskey market report, the on-trade sector has benefited from growing interest in premium and craft whiskeys. Bars, pubs, and restaurants provide customers with opportunities to explore unique whiskies, often through curated tastings. The sector thrives on the rise of cocktail culture, increasing sales and allowing for higher margins on premium whiskey servings. In March 2024, Danish distillery Stauning Whisky launched its award-winning whiskies in Australia for the first time, with events held in Sydney and Melbourne. Additionally, Stauning formed a partnership with Sydney’s Maybe Sammy Cocktail Festival to strengthen its involvement with the on-trade sector in Australia.

The off-trade sector in the Australia whiskey market has experienced growth through retail sales in liquor stores and supermarkets, driven by increasing consumer demand for premium and craft whiskies. E-commerce platforms have also facilitated easier access for consumers, with promotions and convenience boosting sales, especially for limited-edition or rare whiskey bottles. In January 2024, 23rd St Distillery celebrated the Chinese New Year 2025 by releasing its limited-edition Year of the Snake Whisky. Crafted from Kangaroo Island barley and distilled in a century-old copper pot still, only 3,600 bottles were made, with packaging designed by Sydney-based artist Chris Yee.

Australia Whiskey Market Regional Insights

New South Wales Whiskey Market Overview

As per the Australia whiskey industry analysis, New South Wales (NSW) boasts a growing whiskey market, with several distilleries contributing to Australia’s expanding spirit’s sector. The state’s diverse climate and access to high-quality grains enhance whiskey production, attracting both local and international consumers. In March 2023, Nine Circles Distillery in Pambula launched its whiskey at the Merimbula Eat Festival.

Queensland Whiskey Market Trends

Queensland’s whiskey market is expanding, with innovative distilleries exploring unique grains and maturation methods. The region’s warm climate accelerates aging, resulting in distinct flavour profiles that appeal to a wide audience. Castle Glen Australia, the first whiskey manufacturer in Queensland, recently released its debut whiskey under “The Australian Whiskey Company” label.

Western Australia Whiskey Market Dynamics

Western Australia’s whiskey industry thrives due to pristine water sources and a Mediterranean climate. These elements enable distilleries to produce high-quality spirits with unique characteristics, bolstering the state’s reputation in the global whiskey market. Limeburners single malt whiskey, launched by Great Southern Distilling Company in Albany, was the first whiskey legally produced in the state.

Competitive Landscape

The Australia whiskey market key players include distilleries celebrated for crafting premium single malts. These distilleries take pride in using locally sourced ingredients while emphasising quality and innovation in their whiskey-making processes. They specialise in small-batch production, blending traditional methods with modern techniques to deliver exceptional craftsmanship and unique flavours.

Key Industry Players

SULLIVANS COVE Distillery: Sullivans Cove Distillery, established in 1994, is based in Tasmania, Australia. It is renowned for producing award-winning single malt whiskeys. The distillery focuses on small-batch production using local ingredients, ensuring high-quality craftsmanship. Sullivans Cove has gained international recognition, solidifying its reputation in the global whiskey industry.

Hellyers Road Distillery Pty Ltd.: Hellyers Road Distillery, founded in 1999, is situated in Tasmania, Australia. It is one of Australia’s largest distilleries and is well-regarded for producing premium single malts. The distillery prides itself on its use of locally sourced ingredients and its commitment to quality and innovation in the whiskey-making process.

New World Whisky Distillery Pty Ltd.: New World Whisky Distillery, established in 2013, is based in Tasmania, Australia. The company is known for its innovative approach to whisky production, combining traditional methods with new techniques. New World Whisky creates unique expressions of Australian whisky, receiving international attention for its distinct flavours and craftsmanship.

LARK Distilling Co.: Lark Distilling Co., founded in 1992, is headquartered in Tasmania, Australia. As one of Australia’s pioneering craft distilleries, it has played a major role in reviving the country’s whisky industry. Lark’s single malt whiskies are highly regarded for their rich flavours and exceptional quality, establishing the distillery as a leader in the sector.

Other key players in the Australia whiskey market report are Overeem Whisky Pty Ltd., ARD Operation Pty Limited, Bakery Hill Distillery, Whipper Snapper Distillery, Fleurieu Distillery, and Operatix Pty Ltd., among others.

Recent Developments

November 2024

Wee Smoky whisky, a corn-based single-grain Scotch, gained popularity in Australia with its smooth, fruity profile and smoky finish. Aimed at younger consumers and cocktail creators, it was marketed as a whisky for mixing. By 2024, it was available in over 400 stores, inspiring new whisky drinkers.

August 2024

Pernod Ricard introduced Skrewball, a peanut butter-flavoured whiskey, to Australia and New Zealand. The 35%-ABV brand, priced at AUD65 for a 75cl bottle, is now available in major retailers. Skrewball, created by Steven and Brittany Yeng, has expanded globally since its 2019 launch, reaching over 2 million cases.