Scotch Whisky Trade Suffers Enormous Fall In Exports

The Scotch Whisky Association (SWA), the commerce group that represents and promotes the scotch whisky trade, has launched H1 figures exhibiting a drastic decline in exports in comparison with H1 2023. 

Information reveals that the worth of scotch whisky exports fell by 18% to £2.1 billion in comparison with the identical interval in 2023. The amount of exports additionally fell by 10.2% this 12 months – the variety of scotch whisky bottles exported each second fell from 40 in H1 2023, to 36 in H1 2024. The autumn comes after scotch whisky exports topped £6 million for the primary time in 2022. 

Scotch Whisky World Markets 

By worth, the US stays the biggest international marketplace for scotch whisky, with a worth of £421.4 million, down 3.5% from final 12 months. The SWA asserts that the scotch whisky trade is constant to really feel the impacts of the big 25% tariff on US imports of single malt scotch, which was levied between October 2019 and March 2021. It’s estimated that this tax price the trade £600 million in misplaced exports and market share. The SWA continues to push for a decision by the brand new UK Authorities. 

In additional welcome information, the Indian marketplace for scotch whisky (by quantity) grew by 17.3% in H1 2024 in comparison with the primary half of 2023. Nonetheless, an astronomical 150% import tariff stays in place. Once more, the SWA has inspired the federal government to handle this by concluding the UK-India Free Commerce Settlement. It’s estimated that introducing a discount within the tariff, section by section, would see the worth of scotch whisky exports develop by £1 billion by 2030. 

“Again Scotch Producers To The Hilt” 

Within the leadup to the latest basic election, now-Prime Minister Sir Keir Starmer promised to “again Scotch producers to the hilt,” saying that “it’s clear Scotland’s whisky trade isn’t getting the soundness it wants from the Tories and the SNP.” 

Now, the SWA is asking on the Prime Minister to honor that promise. The trade will quickly see what comes of this, the Autumn Price range is predicted on October thirtieth. Scotch whisky producers hope to see the tax burden on scotch whisky diminished, following a duty increase of 10.1% last August, which brought about injury to the home market. 

SWA Chief Government, Mark Kent: 

“We’re a resilient trade, exporting to over 180 markets, and are skilled in navigating such intervals of turbulence, and we’re assured of the long-term development alternatives for Scotch Whisky. However it’s clear that the primary half of 2024 has been difficult, as for different premium international exports. This has not come as a shock given the unstable worldwide scenario affecting international industries and inflationary pressures which have fed by to shoppers throughout international markets. 

“The UK Price range on 30 October is the primary alternative for the brand new Labour authorities to indicate it actually helps Scotch. Final 12 months’s double-digit tax hike on Scotch Whisky within the UK, the biggest in 40 years, has already misplaced HM Treasury virtually £300 million in tax income. Starting to reverse the injury by reducing responsibility on Scotch Whisky will enhance public funds and bolster the trade by this difficult interval.  

“As well as, the H1 figures clearly present that our greatest market, the US, has not absolutely stabilised following COVID and the injury brought on by the 25% tariff on Single Malt within the US. The everlasting elimination of this tariff, going past the present five-year suspension, would take away uncertainty, give the trade elevated confidence and permit our full focus to be on rising on this extremely aggressive spirits market. 

“It’s welcome that the UK authorities has picked up negotiations on a UK-India commerce settlement. Exports to India have been a vivid spot within the first half of 2024, regardless of the present 150% tariff being a brake on future development. Securing a deal which reduces the tariff can be a significant enhance to the trade and assist to mitigate the affect of a slowdown in different international markets.”