Scotch whisky exports fall by 18% in first half of 2024

By James Bayley

Published: 12 September, 2024

The Scotch Whisky Association (SWA) has revealed a significant drop in exports, with a decline of 18% in the first half of 2024 compared to the same period in 2023. The value of exports in H1 2024 fell to £2.1bn, while the volume dropped by 10.2%, equating to 566 million 70cl bottles, or 36 bottles per second. This contrasts with 40 bottles per second in the first half of 2023.

The figures, collated by HMRC, prompted the SWA to urge the UK government to support Scotch producers, a commitment made by Prime Minister Keir Starmer during his election campaign. Producers are seeking a reduction in the tax burden in the upcoming budget on 30 October, following the negative effects of the 10.1% duty rise last August.

In terms of value, the United States remains the largest market, though the sector is still feeling the impact of a 25% tariff on single malt Scotch whisky imposed between 2019 and 2021. The SWA estimates this tariff cost the industry £600m in lost exports. The industry continues to push for a permanent resolution to the trade dispute to safeguard its position in the US market.

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By volume, India is the largest market, with a 17.3% growth in H1 2024, despite the 150% tariff on imports. The SWA is pressing the government to finalise the UK-India free trade agreement, which could result in an additional £1bn in export growth over five years if tariffs are reduced.

Commenting on the figures, SWA chief executive Mark Kent said: “The Prime Minister has promised to ‘back Scotch producers to the hilt’. 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.”

Kent acknowledged the industry’s resilience and long-term growth prospects but noted that H1 2024 was challenging, especially for premium global exports, due to international volatility and inflation. He added: “The UK budget on 30 October is the first opportunity for the new Labour government to show it truly supports Scotch.”

He also stressed the need for a permanent elimination of the 25% US tariff and for progress on a trade deal with India, noting: “Exports to India have been a bright spot despite the current 150% tariff being a brake on future growth.”

The largest export destinations for Scotch whisky by value in the first half of 2024 were:

1. United States: £421.4m (-3.5%)

2. France: £158.5m (-32.6%)

3. Singapore: £128m (-22.3%)

4. Taiwan: £117.1m (-21.5%)

5. India: £105.7m (+11.9%)

6. Japan: £80m (-7.5%)

7. China: £77.9m (-42.4%)

8. Germany: £63.5m (-30.3%)

9. UAE: £61.3m (+0.1%)

10. Spain: £61.1m (-24.9%)

By volume, the largest export destinations were: