Recent decline in Scotch whisky exports slowing

By Erin Smith

Published: 23 May, 2016

Scotch whisky export value was down 2.4% in 2015 totalling £3.86 billion in custom value, but it is good news as the decline in recent years is slowing.

In a new report put out the Scotch Whisky Association, the year prior saw a 7% decline, but exports are still up significantly compared to a decade ago. Export value is up 56% compared to ten years ago.

David Frost, Scotch Whisky Association chief executive, said: "Scotch Whisky exports continue to deliver and the fundamentals for future growth are strong. Whilst the last couple of years have been more difficult, the longer-term picture has been one of increased demand, new investment, and premiumisation."

SWA's David Frost SWA’s David Frost

France was the largest market for Scotch whisky by volume and imported 176.2 million 70 cl bottles. The market was down -4.3% compared to 2014. The USA was the second largest importing country by volume taking in a total of 116.4 million bottles. However, the USA was also the biggest country by value to import Scotch whisky totalling £749 million which was flat compared to 2014.

While the figures are showing an improvement there are still challenges ahead.

Frost did caution that the EU referendum could potentially be very damaging should the UK vote to leave because of the importance of the single European market to the industry. Around 40% of the volume of Scotch shipped globally went to the European Union.

"Challenges remain, with an uncertain global economy and political uncertainty in some export markets. Continued EU membership will also help to support Scotch Whisky exports to the single market and would leave Scotch well placed to benefit from the lower tariffs and fairer market access that the EU has been able to secure through its negotiation of Free Trade Agreements with countries around the world," said Frost.

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