Following years of price surges, the value of elusive Scotch whiskies sold at auction plummeted in 2024 according to Scotland-based financial advisory firm Noble & Co., indicating that the rare whisky bubble may have “finally burst.”
The firm’s annual Whisky Intelligence Report revealed that bottles of Scotch sold at global auctions for over £1,000 ($1,277) dipped in value by 40 percent over the year to October 1, with sales volume declining by 34 percent in the same period. The stats arrive at a tumultuous time for the overall Scotch whisky market: Exports decreased 18 percent in value and 10 percent in volume in the first half of 2024, according to the Scotch Whisky Association.
Following the global financial crisis of the late 2000s, consumer interest in rare single malt whisky skyrocketed thanks to low interest rates and the quantitative easing of central banks. According to analysts at Noble & Co., the looser economic policies encouraged investors to explore the possibility of financial returns in alternative asset classes, like exclusive spirits. However, as auction values surged in the late 2010s, many producers increased their MSRPs in an attempt to capture some of the gains lost on the secondary market. Now, in a weak, post-Covid economy marked by periods of high inflation and interest rates, demand for high-end spirits is dramatically slipping.
As Jonny Fowle, Sotheby’s global head of whisky and spirits, told the Financial Times, the decision to increase suggested retail values on post-2020 releases was one that lacked foresight. “It’s
