When a bottle of Yamazaki 55 was sold in 2020 for a record-breaking $795,000, the world sat up and took notice. This sale represented a new milestone for a Japanese single malt, tilting the focus of whisky collecting towards Asia: a region that had been promising to become the next powerhouse of whisky investment for a number of years.
Now, it has definitely arrived.
Asia turns to liquid gold
Asia is one of the world’s most diverse regions with vastly different traditions and cultures and countries. But a growing taste for the golden liquid is increasingly shared across the region, beyond traditional markets in Japan and Hong Kong. In fact, in terms of size, India is now the world’s largest whisky market, although due to steep tariffs, only 2% of whisky consumed in India is Scotch.
This could be about to change if the long predicted free trade agreement between India and the UK eventually comes to pass, representing a massive opportunity for the whisky industry—and for cask investors.
Throughout Asia, a growing population with rising disposable income is expected to propel demand for whisky even further over the next five years, with an increasing preference for more premium and super premium products.
At the same time, many investors in the region are turning to alternative assets such as whisky to weather the storms of global market volatility. Globally, whisky casks have enjoyed a history of continuous, steady growth, unlike the fluctuations which are often seen in other luxury assets, like art, coins or wine.
As investors across Asia begin looking to expand their portfolios, attention has inevitably turned to whisky casks. The Asian region is hungry for rare casks, pushing up prices globally due to the limited supply from Scotland’s distilleries. Over the past few years, some of the biggest cask sales in recent times have been made to investors from the region, including a staggering £16m cask of Ardbeg 1975, purchased by a private collector from Asia in 2022.
What are Asian Whisky cask investors looking for?
When it comes to selecting casks, investors throughout Asia tend to seek out stock from Scotland’s best-known distilleries, with a strong focus on the biggest and most famous brands. Traditionally, whisky cask investment has been concentrated on high-net-worth individuals, looking to own casks to fulfil an ambition to become part of a whisky heritage, a reflection of their love of whisky culture.
These investors have been concentrated in areas like Singapore and Hong Kong. However, now across mainland China, other kinds of investors are increasingly turning to whisky casks as a means of protecting and growing their wealth, representing a huge and growing market for a wider selection of casks of different ages and prices.
The Asian investor has traditionally thought long-term, choosing products that will provide dividends for future generations, which has always been a part of Asian culture with its focus on family and longevity. Therefore, the steady maturation of whisky casks, which gain significant value after ten years, is an attractive option for that investment mindset.
How did the market perform in 2024?
Despite global economic headwinds, the whisky cask investment market saw steady growth throughout 2024. Post-COVID, there has been a general correction for luxury products in Asia, including bottles of whisky. However, the demand for high-end casks and the market for collecting new makes continues to grow. While bottle prices are dropping, the investment potential of whisky casks is continuing to capture attention as, unlike bottles, whisky in the cask continues to develop value as it ages.
As bottle prices for premium whisky fall, the market may see less investment in high-end casks and a shift to new make or younger casks.
The year of the cask
The new year has begun with a feeling of quiet optimism in Asia, which is still seeing steady economic growth compared to other parts of the world. As we enter the Year of the Snake, we expect continuing expansion in the untapped market for Asian whisky cask investment, with more investors competing for Scotland’s most coveted casks as interest in whisky continues to rise throughout Asia.
As specialists in cask investment for the Asian market, Whisky Cask Club is uniquely positioned to understand the needs of investors in the region, offering them unique access to a wide range of premium single malt from Scotland’s most renowned and up-and-coming distilleries.
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