FDBusiness.com

Global exports of Scotch Whisky grew to more than £6 billion for the first time in 2022, according to figures released by the Scotch Whisky Association (SWA). In 2022, the value of Scotch Whisky exports was up 37% by value, to £6.2 billion. The number of 70cl bottles exported also grew by 21% to the equivalent of 1.67 billion.

The Asia-Pacific region overtook the EU as the industry’s largest regional market, with double-digit growth in Taiwan, Singapore, India and China as the post-Covid recovery continued.

While established EU markets such as France, Germany and Spain continued their post-pandemic bounce-back with strong growth in 2022, India replaced France as the largest Scotch Whisky market by volume. Despite double digit growth, Scotch Whisky still only comprises 2% of the Indian whisky market. SWA analysis shows that a UK-India FTA deal which eases the 150% tariff burden on Scotch Whisky in India could boost market access for Scotland’s whisky companies, allowing for an additional £1 billion of growth over the next five years.

In North America, the United States continued its recovery following the impacts of tariffs on Single Malt Scotch Whisky to again be the industry’s only market with exports valued over £1 billion. Both Mexico and Canada also saw growth, underlining the importance of securing further market access wins through the renegotiation of the UK’s Free Trade Agreements with both countries.

Commenting on the figures, Chief Executive of the Scotch Whisky Association Mark Kent said: “During a year of significant economic headwinds and global supply chain disruption, the Scotch Whisky industry continued to be an anchor of growth, supporting investment and job creation across Scotland and the UK.

“The enduring strength of Scotch Whisky as the UK’s leading food and drink export is its global appeal to consumers who recognise the quality of the spirit, with production increasingly grounded in sustainable practices as we continue to reduce our impact on the environment by investing in the future. Passing £6 billion in export value for the first time is a milestone, and testament to the work of our member companies and the tens of thousands of employees across Scotland and the UK supply chain who make Scotch Whisky a global success story of which we are rightly proud.

“In 2022, the industry benefited from the full re-opening of hospitality businesses in key global markets, as well as the return of global travel retail which opens such an important window for Scotch Whisky to business and leisure travellers. Exports were also boosted by the continued premiumisation trend, with consumers attracted to high-quality spirits like Scotch Whisky, now often enjoyed in longer serves as well as the more traditional dram.

“Looking ahead, the industry will have to continue to navigate economic headwinds, including global inflationary pressures, domestic energy and business costs, and a reduction in consumer confidence. With the right support from our home governments, we remain confident that the industry can continue to deliver for the Scottish and wider UK economy. We look forward to collaborating with government and regulators on initiatives including sustainability and responsible drinking, alongside our work to further boost exports, creating jobs and investment in communities across the country.

“By reducing tariffs through the UK-India free trade agreement, continuing the duty freeze in the March budget, and ensuring the industry’s continued ability to advertise our world-class product in our home market, the Scottish and UK governments can count on the Scotch Whisky industry to reinvest its success across the UK.”

The Scottish Government’s Rural Affairs & Islands Cabinet Secretary Mairi Gougeon said: “Food and drink is one of our priority export sectors and the continued growth in global markets means more jobs and investment across Scotland. The whisky industry alone employs 11,000 people directly in Scotland, over 7,000 of whom work in rural areas and a further 42,000 jobs across the UK.  We will continue to engage with and listen to the whisky industry to understand how we can improve export opportunities and remove barriers to trade.”

The UK Government’s Minister of State at the Department for Business and Trade Nigel Huddleston said: “Scotch Whisky is one of the UK’s great exporting success stories, contributing billions of pounds to the economy and supporting thousands of jobs, so I’m pleased to see these export figures showing a growing global demand.  It’s essential we continue to support the industry as it expands into new markets thanks to our new trade agreements around the world such as CPTPP and in India. As we set our sights on £1 trillion exports by 2030, I’m confident we can see Scotch Whisky go from strength to strength in the years ahead.”