12 September 2024
Scotch Whisky exports in first half of 2024 reflect global economic headwinds
The Scotch Whisky Association (SWA) has released new figures revealing that exports of Scotch Whisky in the first half of 2024 have fallen by 18% compared to the same period in 2023.
Data for H1 2024 shows that the value of Scotch Whisky exports declined when compared with the first half of 2023 - a year in which the industry saw a reduction in exports after a record breaking 2022. Export value in H1 2024 was £2.1bn, down 18% on 2023. In the same period, the volume of exports fell by 10.2%, to the equivalent of 566m 70cl bottles – or 36 bottles of Scotch Whisky exported each second, compared to 40 bottles per second in the first half of 2023.
Publishing the figures, which are collated by HMRC, the SWA called on the new UK government to take action to ‘back Scotch producers to the hilt’, as Prime Minister Keir Starmer promised to do in the run up to the General Election. This includes reducing the tax burden on Scotch Whisky at the Budget on 30 October following the damaging domestic impact of the 10.1% duty increase in August last year.
By value, the United States remains the largest global market in the first half of 2024. The industry continues to feel the impact of the 25% tariff on Single Malt Scotch Whisky, levied between October 2019 and March 2021, which cost the industry £600m in lost exports and market share. The industry continues to press for a full resolution of the underlying trade dispute and ensure that Scotch Whisky is removed from further harm in this critical global market.
By volume, India is the largest market, with growth of 17.3% in the first half of 2024 compared with the previous year. This is despite the current 150% tariff on imports remaining in place. The SWA has called on the new UK government to redouble efforts to conclude the UK-India Free Trade Agreement. The phased reduction of the tariff would benefit industries in both the UK and India and could see the value of Scotch Whisky exports grow by £1bn over five years.
Commenting on export figures in the first half of 2024, SWA Chief Executive Mark Kent said:
“The Prime Minister has promised to ‘back Scotch producers to the hilt’. These figures are a reminder that the success of Scotch Whisky cannot be taken for granted and requires government support to ease the industry through short term volatility.
“We are a resilient industry, exporting to over 180 markets, and are experienced in navigating such periods of turbulence, and we are confident of the long-term growth opportunities for Scotch Whisky. But it is clear that the first half of 2024 has been challenging, as for other premium global exports. This has not come as a surprise given the volatile international situation affecting global industries and inflationary pressures which have fed through to consumers across global markets.
“The UK Budget on 30 October is the first opportunity for the new Labour government to show it truly supports Scotch. Last year’s double-digit tax hike on Scotch Whisky in the UK, the largest in 40 years, has already lost HM Treasury almost £300 million in tax revenue. Beginning to reverse the damage by cutting duty on Scotch Whisky will boost public finances and bolster the industry through this challenging period.
“In addition, the H1 figures clearly show that our biggest market, the US, has not fully stabilised following COVID and the damage caused by the 25% tariff on Single Malt in the US. The permanent elimination of this tariff, going beyond the current five-year suspension, would remove uncertainty, give the industry increased confidence and allow our full focus to be on growing in this highly competitive spirits market.
“It is welcome that the UK government has picked up negotiations on a UK-India trade agreement. Exports to India have been a bright spot in the first half of 2024, despite the current 150% tariff being a brake on future growth. Securing a deal which reduces the tariff would be a major boost to the industry and help to mitigate the impact of a slowdown in other global markets.”
Scotch Whisky Association Chief Executive, Mark Kent
Hearing from staff at @InchDairnieDist, it's clear Scotland’s whisky industry isn't getting the stability it needs from the Tories and the SNP.
— Keir Starmer (@Keir_Starmer) November 16, 2023
Labour will put growth at the heart of our government and back Scotch producers to the hilt. pic.twitter.com/XaFutlO5wa
Notes for Editors
For more information, contact pressoffice@swa.org.uk
Data for full year 2024 exports will be published in February 2025.
Summary of H1 2024 Scotch Whisky exports
Export value of Scotch Whisky in H1 2024 was £2.1bn, down £463.2m (-18%) compared with H1 2023
Export volume of Scotch Whisky in H1 2024 was 566m 70cl bottles (equivalent), down 64.3m (-10.2%) 70cl bottles compared with H1 2023
H1 2024 is the 4th highest value export total since record began.
Top 10 Markets
The largest export destinations for Scotch Whisky (defined by value) during H1 2024 were:
- United States: £421.4 -3.5% (£436.5m in H1 2023)
- France: £158.5m -32.61% (£235.1m in H1 2023)
- Singapore: £128m -22.3% (£164.7m in H1 2023)
- Taiwan: £117.1 -21.5% (£149.1m in H1 2023)
- India: £105.7 +11.9% (£94.5m in H1 2023)
- Japan: £80m -7.5% (£86.5m in H1 2023)
- China: £77.9m -42.4% (£135.1m in H1 2023)
- Germany: £63.5m -30.3% (£91m in H1 2023)
- UAE: £61.3m +0.1% (£61.2m in H1 2023)
- Spain: £61.1m -24.9% (£81.4m in H1 2023)
The largest export destinations for Scotch Whisky (defined by volume, 70cl bottles equivalent) during H1 2024 were:
- India: 85m bottles +17.3% (72.5m bottles in H1 2023)
- France: 76.7m bottles -13.08% (88.2m bottles in H1 2023)
- United States: 54.6m bottles -7.6% (59.2m bottles in H1 2023)
- Japan: 34.7m bottles +13.4% (30.6m bottles in H1 2023)
- Spain: 21.6m bottles -24.1% (28.5m bottles in H1 2023)
- Germany: 21.5m bottles -21.2% (27.3m bottles in H1 2023)
- Türkiye: 17.4m bottles -5.7% (18.5 bottles in H1 2023)
- Brazil: 16.5m bottles -22.9% (21.3m bottles in H1 2023)
- Poland: 16.2m bottles -1.8% (16.5m bottles in H1 2023)
- China: 13.8m bottles -14% (16.1m bottles in H1 2023)
Regional data
In H1 2024, Scotch Whisky exports by global region (defined by value) were:
Asia Pacific: £661.3m -21.9%
European Union: £517.4 -29%
North America: £485m -7.8%
Middle East and Africa: £178.8m -8.6%
Central and South America: £173.4m -2.4%
Europe (ex.EU): £90.4m -4.4%
In H1 2024, Scotch Whisky exports by global region (defined by volume, 70cl bottles equivalent) were:
Asia Pacific: 184.8m +0.8%
European Union: 189.9m -20.7%
North America: 67.2m -13.4%
Middle East and Africa: 40.3m -2.7%
Central and South America: 50.6m -8.8%
Europe (ex.EU): 33.3m +0.4%
Prime Minister Keir Starmer’s commitment to “back Scotch producers to the hilt” on a visit to InchDairnie Distillery in November 2023: https://x.com/Keir_Starmer/status/1725179802938699893
HMRC figures show that the 10.1% increase to spirits duty in August 2023 has resulted in £298m reduction in spirits revenue between August 2023 and July 2024 (inclusive), compared to the same period the previous year.