Scotch Whisky Association reveals drop in exports in 2023 - but sector seen as remaining resilient

Scotland’s national drink eyes brighter outlook after drop in both exports and one major producer’s sales.

Scotch whisky’s trade body has again called for government support after exports of the drink fell last year amid what it brands “significant” challenges for the sector. However, it also said the equivalent of 43 70cl bottles a second were shipped overseas during the year, after a “bumper” 2022.

The Scotch Whisky Association (SWA) said exports in 2023 topped £5.6 billion, equal to 1.35 billion 70cl bottles, but both volume and value were down from the previous year, by 19 per cent and 9.5 per cent respectively. The organisation said 2022 had been buoyant as global markets including global travel retail got back to full power, adding that the most recent figures “represent a more normalised depiction of the current state of global exports”, and compared to 2019, the value was up by 14 per cent and volume 3 per cent.

As in 2022, Asia-Pacific continued to dominate as Scotch’s largest regional market by value, including record value exports to China, a market up 165 per cent on 2019, and value uplifts in Singapore (19 per cent) and Taiwan (8 per cent) with premiumisation a driver in these markets. Turning to Europe, this was found to have remained a key export region for the spirit for volume and value, with France once again becoming the industry’s largest volume market – a position briefly held by India in 2022.

The Scotch Whisky Association said exports in 2023 topped £5.6 billion, equal to 1.35 billion 70cl bottles. Picture: Getty Images/iStockphoto.

Additionally, the US, which the SWA said has long been Scotch whisky’s biggest market by value, saw a sector-wide fall in exports of 7 per cent year on year, and 8.5 per cent on 2019, to £978 million. The numbers follow a report published in January showing that Scotch whisky in the UK boosts the economy by £7.1bn annually, and supports 66,000 jobs.

Regarding the 2023 figures, SWA boss Mark Kent said they show the sector’s export strength despite the “volatile” global trading environment and rising costs for consumers and businesses. However, he added: “We need to see more tangible support from government, both at home and in our priority markets, in order to continue to grow our export numbers, and the resultant investment, employment and economic benefits that come with that.”

UK Government Minister for Exports Lord Offord, said: “It’s fantastic to see whisky exports in 2023 continuing to outperform pre-pandemic levels as businesses take advantage of our free trade deals and expand into new markets around the world. We want the UK to be an export-led economy and reach a trillion pounds of exports a year by 2030."

Meanwhile, Scotch whisky producer Chivas Brothers, part of the Pernod Ricard group, reported that interim organic net sales were down 6 per cent year on year against a “high comparison” basis. Chivas Brothers chairman and chief executive Jean-Etienne Gourgues commented: “Our H1 FY24 performance paints a clear picture of whisky market normalisation… Whisky is a long-term game: we remain focused on our ambition to open up to new markets and consumers through product innovations and brand experiences.”