40 bottles of Scotch were exported every second last year - but it's time for action as sales tumble

Scotch whisky exports have fallen by almost a fifth prompting calls to reduce the tax burden on a critical sector of the economy.

The latest figures from the Scotch Whisky Association (SWA) show that whisky exports fell by some 18 per cent in the first half of 2024, compared to the same period last year. Export value in the first six months of this year amounted to £2.1 billion.

In the same period, the volume of exports fell by 10.2 per cent, year on year, to the equivalent of 566 million 70cl bottles – or 36 bottles of Scotch whisky exported each second, compared to 40 bottles per second in the first half of 2023.

Whisky remains Scotland's largest food and drink export and one of its most important export categories overall.

Publishing the first-half figures, which are collated by HMRC, the SWA called on the UK government to take action to “back Scotch producers to the hilt”, as Prime Minister Sir Keir Starmer promised to do in the run up to the General Election. This includes cutting the tax burden on whisky at the Budget next month following the “damaging domestic impact” of the 10.1 per cent duty increase in August last year.

In terms of value of exports, the United States remained the largest global market in the first half of 2024. The SWA said the industry continued to feel the impact of the 25 per cent tariff on single malt whisky, levied between October 2019 and March 2021, which cost the industry an estimated £600 million in lost exports and market share. The industry body continues to press for a “full resolution” of the underlying trade dispute.

By volume, India is the largest market, with growth of 17.3 per cent in the first half of 2024, compared with the previous year. This is despite the current 150 per cent tariff on imports remaining in place.

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.

“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.”

He added: “The UK Budget on October 30 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 £300m 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.”

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