SCOTLAND – The Scotch Whisky Association (SWA) has called for immediate government intervention after the value and volume of Scotch whisky exports both plummeted in the first half of 2024.
According to figures released by the SWA, the value of Scotch whisky shipments fell by 18 percent to £2.1 billion (US$2.74 billion), while export volumes dropped 10.2 percent to 566 million 70cl bottles.
Mark Kent, CEO of the SWA, attributed the decline to a combination of factors, including a 10.1 percent duty increase implemented last year, which has had a “damaging domestic impact” on the industry.
Kent urged the UK government to ease the tax burden on producers, citing a commitment from the Prime Minister to “back Scotch producers to the hilt.”
“The success of Scotch whisky cannot be taken for granted and requires government support to ease the industry through short-term volatility,” Kent stated.
The EU, which remains a key market for Scotch whisky, saw sales plummet by 29 percent to £517.4 million (US$573.8M), with volumes dropping by 20.7 percent to 189.9 million bottles.
Asia-Pacific, the largest region for Scotch whisky by value, recorded a 21.9 percent decline in sales, down to £661.3 million (US$733.4M).
However, volumes saw a slight increase of 0.8 percent to 184.8 million bottles, indicating some resilience in the region despite challenging market conditions.
In North America, Scotch whisky exports dropped 13.4 percent by volume to 67.2 million bottles, contributing to a 7.8 percent decline in value, which fell to £485 million (US$537.9M).
The U.S., still the top individual market for Scotch whisky, experienced a 3.5 percent drop in export value to £421.4 million (US$467.3M), with volumes falling 7.6 percent to 54.6 million bottles.
Kent highlighted that the U.S. market has yet to fully recover from the impacts of COVID-19 and the 25 percent tariff on single malt whisky, which was suspended but not permanently eliminated.
“The permanent elimination of this tariff would remove uncertainty, give the industry increased confidence, and allow our full focus to be on growing in this highly competitive spirits market,” he added.
France, the second-largest market by value, also reported a sharp decline, with export sales falling 32.6 percent to £158.5 million (US$175.8M), while volumes dropped 13.1 percent to 76.7 million bottles.
India was the only top ten market where both the value and volume of Scotch whisky exports increased.
In the first half of 2024, exports to India rose 11.9 percent in value to £105.7 million (US$117.2M), with volumes growing by 17.3 percent to 85 million bottles.
The SWA has welcomed ongoing UK-India trade negotiations, as a reduction in India’s 150 percent tariff could boost future growth in this market.
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