Scotch whisky sector faces falling exports
Scotch whisky’s trade body has again called for government support after exports of the drink fell last year amid what it brands “significant” challenges for the sector. However, it also said the equivalent of 43 70cl bottles a second were shipped overseas during the year, after a “bumper” 2022.
The Scotch Whisky Association (SWA) said exports in 2023 topped £5.6 billion, equal to 1.35 billion 70cl bottles, but both volume and value were down from the previous year, by 19 per cent and 9.5 per cent respectively. The organisation said 2022 had been buoyant as global markets including global travel retail got back to full power, adding that the most recent figures “represent a more normalised depiction of the current state of global exports”, and compared to 2019, the value was up by 14 per cent and volume 3 per cent.
As in 2022, Asia-pacific continued to dominate as Scotch’s largest regional market by value, including record value exports to China, a market up 165 per cent on 2019, and value uplifts in Singapore (19 per cent) and Taiwan (8 per cent) with premiumisation a driver in these markets. Turning to Europe, this was found to have remained a key export region for the spirit for volume and value, with France once again becoming the industry’s largest volume market – a position briefly held by India in 2022.
Additionally, the US, which the SWA said has long been Scotch whisky’ s biggest market by value, saw a sector-wide fall in exports of 7 per cent year on year, and 8.5 percent on 2019, to £978 million. the numbers follow a report published in January showing that Scotch whisky in the UK boosts the economy by £7.1bn annually, and supports 66,000 jobs.
Regarding the 2023 figures, SWA boss Mark Kent said they show the sector’s export strength despite the “volatile” global trading environment and rising costs for consumers and businesses. However, he added: “We need to see more tangible support from government, both at home and in our priority markets, to continue to grow export numbers, and the resultant investment, employment and economic benefits.” UK government minister for exports Lord Offord, said: “It’s fantastic to see whisky exports in 2023 continuing to outperform pre-pandemic levels as businesses take advantage of our free trade deals and expand into new markets around the world.
“We want the UK to be an export-led economy and reach a trillion pounds of exports a year by 2030.”
Meanwhile, Pernod Ricard, the global spirits giant that owns Scotch whisky producer Chivas Brothers, said it expects sales to grow in the second half after reporting an interim drop as the spirits market recalibrates. The group, whose other Scotch brands include the Glenlivet and Aberlour Distillery, as well as Absolut vodka, said sales totalled €6.6bn (£5.6bn).