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Insider UK

Lifestyle

Peter A Walker

Scotch whisky exports more than £6 billion for first time - despite domestic headwinds

United Kingdom Mairi Gougeon Mark Kent Scotland India European Union France

Global exports of Scotch whisky grew to more than £6bn for the first time in 2022, according to figures from the Scotch Whisky Association (SWA).

In 2022, the value of Scotch whisky exports was up 37% by value, to £6.2bn. The number of 70cl bottles exported also grew by 21% to the equivalent of 1.67bn.

The Asia Pacific region overtook the European Union 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 free-trade agreement 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 £1bn of growth over the next five years.

In North America, the United States continued its recovery following the impacts of tariffs on single malt to again be the industry’s only market, with exports valued at more than £1bn. Both Mexico and Canada also saw growth, underlining the importance of securing further market access wins through the renegotiation of the UK’s trade agreements with both countries.

SWA chief executive 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.

“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,“ Kent continued. “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.

“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.”

Rural Affairs Secretary Mairi Gougeon said: “It is 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 - 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.”

Nigel Huddleston, minister of state at the Department for Business and Trade, 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.”

Meanwhile, Scottish salmon was the UK’s biggest food export in 2022, new HM Revenue & Customs figures have revealed.

Sales reached £578m in the calendar year, with France leading the global demand.

European destinations dominated as the sector continued to bounce back from Brexit. Scottish salmon was exported to 54 countries, with North America and Asia also reporting strong demand.

Farm-raised salmon directly employs 2,500 people in Scotland and a further 10,000 jobs are dependent on the sector.

Fresh, whole Scottish salmon export sales of £578m were down 6% on 2021's total of £614m and a similar rate below the record £617m in 2019.

The EU accounted for almost 64% of sales, with the US and Chinese markets remaining popular.

The volume of fish transported overseas fell by 26%, reflecting tight supplies globally and more Scottish salmon being sold in the UK domestic market - which is valued at around £1.2bn-a-year.

Tavish Scott, chief executive of Salmon Scotland, said: “With such pressure on public services during the cost-of-living crisis, the revenue generated by our farmers has never been more important.

“Scottish salmon, grown sustainably in the cold waters off our west coast, is recognised as the best in the world – which is why it is in such high international demand.”

Gougeon commented: “Food and drink is one of our priority export sectors and the continued growth in global markets means more jobs and investment across Scotland.

“We will continue to engage with and listen to the Scottish salmon industry to understand how we can improve export opportunities and remove barriers to trade.”

Top UK food exports (by value) 2022: