From Highballs in Tokyo to Duty Cuts in Delhi: Why Asia Pacific Is Bourbon's Next Growth Engine

North America still accounts for the largest share of bourbon consumption, but the centre of gravity for growth is moving east. Epignosis Insights projects the Asia Pacific Bourbon Whiskey Market to expand from US$2.04 billion in 2025 to US$3.47 billion by 2032, an 8.02% CAGR that is the fastest of any region. By 2032, Asia Pacific is expected to account for 25.1% of global bourbon value, up from 23.6% in 2025.

The region is not a single market. Japan, China and India each follow a distinct growth logic, and producers that treat them as one opportunity are likely to misallocate investment.

Japan: A Mature Market That Keeps Growing

Japan is Asia Pacific's anchor, accounting for 59.9% of regional bourbon value in 2025 at US$1.22 billion. Epignosis Insights projects the market to reach US$2.05 billion by 2032 at a 7.82% CAGR, faster than the United States.

Japan's strength rests on a deeply established highball culture, in which whisky is mixed with chilled soda and served in bars, restaurants and ready-to-serve formats. Bourbon's sweeter, vanilla-led profile suits this serve well. Distribution is also unusually broad, with convenience stores and supermarkets giving bourbon everyday visibility. Canned and ready-to-serve highballs act as a further gateway, introducing consumers to bourbon's flavour profile before many of them trade up to bottled whiskey.

2025 was a difficult year on paper. The Distilled Spirits Council of the United States reported that American whiskey exports to Japan fell 28% to US$57 million, largely as importers adjusted stock levels. Epignosis Insights views this as an inventory correction rather than a demand reversal, with on-trade sales, which account for 43.9% of Japanese bourbon value, continuing to support consumption.

China: The Blended Bourbon Opportunity

China's bourbon market is projected to grow from US$345.2 million in 2025 to US$614.5 million by 2032 at an 8.75% CAGR. What sets China apart is the role of blended bourbon, which accounts for 17.5% of the country's value compared with 8.3% globally and is projected to grow at 9.83% annually.

Blended expressions offer a lower-cost introduction to American whiskey for younger urban consumers who are still forming brand preferences. China's bourbon consumers are also strongly on-trade oriented, with bars and restaurants representing 43.1% of value in 2025. For brand owners, this suggests that bartender education and cocktail-led positioning will be more effective than relying on heritage narratives that resonate mainly with established whiskey drinkers.

India: The Fastest-Growing Bourbon Market in the World

India is the standout growth story. Epignosis Insights projects the Indian bourbon market to more than double from US$67.6 million in 2025 to US$139.3 million by 2032, an 11.00% CAGR that is the highest of any country analysed.

The catalyst was policy. In February 2025, India's Ministry of Finance notified a cut in the basic customs duty on bourbon whiskey to 50% from 150%. While state taxes still dominate final retail prices, the reduction improves bourbon's landed-cost competitiveness in a country that consumes more whisky than any other.

A Distinctive Demand Profile

India's bourbon market looks very different from mature markets:

• The on-trade accounts for 55.8% of value, the highest share among major markets, reflecting the importance of bars and premium restaurants in metro cities.
• Blended bourbon holds an 18.3% share and is growing at 11.70% annually.
• PET bottles represent 10.2% of value, compared with less than 1% globally, showing demand for value-tier and trial formats.
• The 40%–45% ABV band is growing at 12.28% annually, the fastest strength-band growth recorded in any country.

Competition Is Intensifying

Bourbon's advantage will not go unchallenged. Under the India–UK Comprehensive Economic and Trade Agreement, India's import duty on Scotch whisky fell to 75% from 150% on 15 July 2026, with further phased reductions to 40% over the coming decade. Scotch has a long head start in Indian on-trade and retail, so bourbon brands will need sharper positioning around flavour, cocktails and accessible pricing to build share.

The Rest of Asia Pacific

Beyond the three largest markets, the rest of Asia Pacific, including South Korea, Australia and Southeast Asia, is projected to grow from US$406.2 million to US$663.1 million at a 7.41% CAGR. These markets combine strong cocktail cultures with relatively open import regimes, making them natural destinations for exporters diversifying away from tariff-exposed markets.

Volume Tells the Same Story

In volume terms, Asia Pacific bourbon consumption is projected to rise from 5.7 million 9-litre cases in 2025 to 8.5 million cases by 2032, a 5.9% CAGR and the fastest regional volume growth globally. Because realised prices in Asia Pacific are higher than in North America due to import duties and logistics costs, the region contributes more to global value than its volume share alone suggests.

What This Means for Bourbon Producers

Asia Pacific rewards producers that tailor their approach market by market. Japan favours consistent quality and highball-friendly serves. China responds to blended, approachable expressions sold through the on-trade. India requires a full price-pack ladder, from PET trial formats to premium straight bourbon, supported by strong bar-led visibility. With US producers sitting on record inventories of aged whiskey, the supply is available; the challenge is building the route to market.
For full country-level forecasts across 18 markets, explore the Epignosis Insights Global Bourbon Whiskey Market report.