The Scotch Whisky Association (SWA) has released data from the first half of 2024 which indicate that exports of Scotch whisky have declined in comparison with the same period in 2023. The 2023 figures also showed a decline after 2022’s record-breaking results.

 

Export value fell by £2.1 billion, 18 per cent down on 2023’s result. The volume of exports fell by 10.2 per cent, equating to 556 million 70cl bottles of Scotch.

 

The US retained its position as the largest individual global market by value in the first half of 2024, although export value fell by 3.5 per cent. SWA chief executive Mark Kent said that the result show that the US market is still recovering from the effect of Covid-19 and the 25 per cent tariff on Scotch whisky in the US. He called for the “permanent elimination” of the tariff in place of the current five-year suspension.

 

By volume, the largest market is India, with a growth of 17.3 per cent in the first half of 2024 compared to 2023, which Kent described as a “bright spot” in export data. The SWA has called on the UK government to conclude trade agreements with India, in order to reduce the 150 per cent tariff on imports and protect the growth of Scotch whisky in the market.

 

In response to the data, Kent called on the UK government to take action to support the Scotch whisky industry, including by reducing the tax burden on Scotch whisky. Spirits duty was increased by 10.1 per cent in 2023, which the SWA says has had a “damaging domestic impact”. While campaigning in 2023 as the then-opposition leader, Starmer said his government’s trade strategy would “back Scotch producers to the hilt”.

 

Kent commented: “These figures are a reminder that the success of Scotch whisky cannot be taken for granted and requires government support to ease the industry through short term volatility.

 

“We are a resilient industry, exporting to over 180 markets, and are experienced in navigating such periods of turbulence, and we are confident of the long-term growth opportunities for Scotch whisky. But it is clear that the first half of 2024 has been challenging, as for other premium global exports. This has not come as a surprise given the volatile international situation affecting global industries and inflationary pressures which have fed through to consumers across global markets.

 

“The UK Budget on 30 October is the first opportunity for the new Labour government to show it truly supports Scotch. Last year’s double-digit tax hike on Scotch whisky in the UK, the largest in 40 years, has already lost HM Treasury almost £300 million in tax revenue. Beginning to reverse the damage by cutting duty on Scotch whisky will boost public finances and bolster the industry through this challenging period.”