Japanese whisky makers are stepping up investments in distilleries, as they expect growing demand at home and abroad.

Nikka Whisky Distilling said on Wednesday that it plans to make a capital investment with its parent company Asahi Breweries to boost production capacity.

The companies will invest about 6 billion yen, or about 38 million dollars, this year to build new facilities to store casks for malt whisky at three production sites in Hokkaido, Miyagi and Tochigi prefectures.

Nikka expects the global whisky market to grow at an annual rate of 2 to 3 percent through 2040. It plans to continue with capital investments next year and beyond with the aim of raising annual domestic and overseas sales in 2040 or later to four-times the level in 2023.

Nikka Whisky President Tamesada Kazutomo says Japanese whisky is recognized as one of the world's top five whiskies. He says his company aims to boost its presence by offering premium whiskies with the potential for steady increase in demand.

Another Japanese whisky maker, Suntory, had set capital investment worth about 10 billion yen, or about 64 million dollars, for distilleries in Osaka and Yamanashi prefectures in the two years through 2024.