The whisky market waking up after the Covid binge?

The rare whisky market is showing signs of cooling after a pandemic boom. During the low-interest-rate era, prices for collectible single malts surged as collectors and speculators bought bottles expecting continued gains. From just before the first lockdown in March 2020 to a peak in May 2022, valuations climbed 58% in the Icon 100 index by Rare Whisky 101, then dropped 42% to a post-pandemic low last month as higher interest rates made conventional investments more attractive. Still, “trophy” bottles have held up better. This month, a Macallan 1926 bottle sold at Sotheby’s for £2.1m at the distillery auction—second-highest in sterling terms. The article also notes the market backdrop for Scotch includes weaker demand from younger drinkers, tariff and taste shifts, and a glut of spirit reaching maturity. The Rare Whisky 101 index has not fallen sharply year-to-date, but whether the bottom is in remains unclear.