In further evidence of the post-pandemic rebound and the return of Global Travel Retail, there’s been a marked growth in volume and value for Scotch whisky in 2022.
According to a recent statement from the Scotch Whisky Association, global exports of Scotch whisky grew to more than £6 billion for the first time in 2022.
The figures released by the SWA explain that 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.
While established EU markets such as France, Germany and Spain continued their post-pandemic rebound with strong growth in 2022, India replaced France as the largest Scotch whisky market by volume.
Scotch whisky still only comprises 2% of the Indian whisky market.
Analysis by the SWA shows that a UK-India free trade agreement deal, one that would ease 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.
The United States market continued its recovery following the impacts of tariffs on single malt Scotch whisky, and is now the Scotch industry’s only market with exports valued over £1 billion.
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In 2022, the Scotch whisky industry continued to support 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 recognize 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,” said Mark Kent, SWA chief executive.
Kent noted that passing £6 billion in export value for the first time is a milestone, and testament to the work of SWA member companies and the tens of thousands of employees across Scotland and the UK supply chain who make Scotch whisky.
“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 travelers,” Kent added.
Looking ahead, Kent explained that 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,” he continued. “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.”
And the SWA intends to do so 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 their product in the home market.
Mairi Gougeon, the Scottish government’s rural affairs and islands cabinet secretary, said, “It’s fantastic to see exports of Scotch whisky increase in 2022 and I want to congratulate everyone in the sector on another successful year.”
“Food and drink is one of our priority export sectors and the continued growth in global markets means more jobs and investment across Scotland,” Gougeon added. “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.”
The UK government’s minister of state at the department for business and trade, Nigel Huddleston, echoed those sentiments.
“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,” he said. “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.”
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