The Scotch Whisky Association (SWA) has urged the UK government to take immediate action in supporting Scotch whisky producers, following assurances made before the General Election. The call to reduce the tax burden comes ahead of the upcoming Budget on October 30, a key moment for the industry, especially after the 10.1% duty increase in August last year, which has reportedly cost HM Treasury almost £300 million in tax revenue.
- Declining Exports: New figures reveal that the value of Scotch whisky exports in the first half of 2024 fell by 18%, reaching £2.1bn compared to 2023. The volume also dropped by 10.2%, translating to 36 bottles exported per second, down from 40 bottles per second in the same period last year.
- Government Support Crucial: SWA Chief Executive Mark Kent stressed that while the industry remains resilient, government assistance is vital to navigate short-term volatility. The industry, which exports to over 180 markets, is confident in long-term growth but acknowledges the challenges in 2024.
- India’s Growth Amid Decline: India stood out as a positive performer, with export values rising by 11.9% in 2024 despite a 150% tariff on Scotch imports. India also saw a 17.3% growth in export volume, solidifying its status as the largest market by volume.
- Global Trends: While India and the UAE showed slight growth, other top markets experienced declines. Despite these challenges, 2023 exports still exceeded pre-pandemic levels by 14%, with Single Malt Scotch exports surpassing £2bn for the first time.
Top Scotch Whisky Markets in 2023 (by value):
- United States: Exports fell by 7% to £978m, with the market yet to return to pre-pandemic levels.
- France: Stable at £474m, down by 3% from 2022 but 10% higher than in 2019.
- Singapore: A 19% increase, reaching £378m, 26% higher than 2019 levels.
- Taiwan: Increased by 8.5% to £341m, up 65% compared to 2019.
- China: Exports rose by 1% to £235m, a remarkable 165% increase from 2019.
- India: Despite a 22.5% drop in 2023, exports still saw a 31% rise compared to 2019, reaching £218m.
- Germany: A slight 2% decrease, valued at £197m, but a 7% increase from pre-pandemic levels.
- Spain: Exports increased by 7%, reaching £184m, slightly above 2019 figures.
- Japan: A minor 3% drop to £170m, though still 16% higher than 2019.
- Turkey: Exports soared by 24%, hitting £131m, a 178% increase from 2019.
The upcoming October Budget is seen as a critical juncture for the industry. While 2023 posed its own set of challenges with export volumes down by 19%, it also represented a return to more normalized conditions following the pandemic. The industry hopes that with reduced tariffs and government support, Scotch whisky will continue to thrive globally.
